How to Invest in Cryptocurrencies – 10 Must-Follow Tips
The Cryptocurrency world is filled with scams, frauds, pump and dump schemes and dozens of other ways by which people can steal your money. Along with that, the excruciating volatility of the market doesn’t help either. It is easy for any new coming investor to be scared off by a market that is already infested with so many money-losing schemes. But then, don’t we always say “with greater risk comes greater reward”?
In a market that is still nascent and budding, there are as many ways of making money as there are of losing it, if not more. It’s just a matter of who gets here first.
To ensure that you are not scared off by the overwhelming wave of uncertainty, you have to be sure to avoid mistakes. Be sure to equip yourself with a strong base, that’ll act as a safety net, protecting you from any harm.
And so, to tell you what the safety net should comprise off, here’s a list of Top 10 things you should keep in mind before investing in cryptocurrencies.
1. DYOR
Now, the most important thing that an investor should keep in mind is to DYOR. DYOR stands for Do Your Own Research, and it means exactly what it says. No matter what sector you are trying to put your money in, be it stocks, real estate or crypto, there is no alternative to hands-on research. With cryptocurrencies, like any other asset class, there are dozens of variables that can help predict the future. The variables can range from the idea of the project, development team, nature of the market, type of token, and so on.
2. Know Your Risk Preference
To ensure that the daily activities of the market do not affect your mood, every investor needs to know and analyze their risk preference. For instance, if an investor’s risk preference is low and it would not suit him to get into a market that is prone to high volatility and unstable returns, he should not get into the crypto market. The cryptocurrency market is known to be volatile and will continue to be so in the near future. After getting comfortable with the risk, the investor can move forward with finding projects that match his preference and goals.
3. Use Trusted Exchanges
Settling upon a trusted and secure exchange can be the difference between being safe or getting hacked. An exchange is a place where you can buy or sell cryptocurrencies. Historically, centralized exchanges are prone to attacks, and dozens of them have been forced to close their operations due to severe losses.
To continue reading strategies that might help you make the most of the booming spcae, head over to CryptoAdventure.org
https://cryptoadventure.org/how-to-invest-in-cryptocurrencies-10-must-follow-tips/