4 Tips to Investing In Cryptocurrency
Bitcoin was the first cryptocurrency to come into the limelight after it’s market value skyrocketed to a record high of $20,000 in 2017. Since then, most people have developed an interest in investing in blockchain technology. Some regard it as the surest way to riches in an overnight. Such an opinion is not close to the truth. In fact, investing in Cryptocurrency is a business like any other. Most beginning investors end up losing money because they don’t have someone to guide them. They therefore invest blindly without knowing what they are getting themselves into. Before you start investing in Cryptocurrency, you should read the tips outlined below so that you can make informed decisions when approaching the market.
1. Buy and Sell on Registered Platforms
There are many criminals on the internet that specifically target cryptocurrency investors. They will trick you into buying or selling your crypto coins via their website and disappear into the thin air with your hard earned money. Before you buy or sell crypto on any platform, you should first carryout due diligence to confirm that the platform is operated by a genuine entity that’s registered and licensed. By visiting FairLay, you can find genuine cryptocurrency platforms that are run by reputable companies.
2. Start Small
When getting started, you should begin with a small amount of money. Keep in mind that an investment in cryptocurrency is not guaranteed. You can actually lose all the money you had initially invested if the value of a currency fluctuates. You should therefore invest with an amount of money that you can afford to lose and still live a stress free life without having to depend on handouts. It’s also a bad idea to take a loan and pump the money into a crypto investment. iF the value of the crypto goes down, you will suffer a huge loss because you will still need to pay your lender. It’s actually advisable you start small and top up your investment later after learning the ropes.
3. Diversify your Portfolio
The world of cryptocurrencies is very dynamic. In fact, it’s not easy to predict when the value of a crypto will appreciate. Investing in one currency is very risky because it’s like putting all your eggs in one basket. If the crypto loses its value due to market forces, all your money will go down the drain because you don’t know if its value will rise in future. Those who bought Bitcoin after it hit a high of $20,000 are still counting their losses. You can protect yourself from such unforeseen uncertainties by buying different cryptocurrencies. The advantage is that some currencies will depreciate in value while others will appreciate.
4. Automate your Investment
If you have been trading in crypto manually, it’s high time you considered trading with a robot. The advantage of a robot is that it’s very accurate in spotting trading opportunities. You can therefore, be sure that you will make money even when you are asleep. You can also opt to use mining hardware. These programs are basically computers with advanced features that are linked to the blockchain. They are plugged to uninterrupted source of power and internet so that they can mine crypto round the clock. If you prefer to buy your currencies and sell them in future, you should buy when they are low and sell when price has gone up because that’s how you will make a profit.