It seems that cryptocurrency is gaining more popularity these days and they are getting more easily attainable for a common person to invest in.
So we thought it is a good idea to provide our readers some basic tips about investment in cryptocurrency. We believe that by following these tips you will be able to boost your chances of meeting your crypto investment goals.
We know that investing in Bitcoin or any cryptocurrency can be a little intimidating for those who are new in this world, so here are some tips from the experts in this industry to maximize your chances of success in this field.
Now let’s see what these golden tips are:
Wait for the Dip
Like any other currency or stock shares, cryptocurrency value is always fluctuating. So it is wise to wait for the dip, if the cryptocurrency you are interested in buying is skyrocketing. As you can see incredible surges in the price of most popular cryptocurrency Bitcoin, it means that cryptocurrency is not sustainable yet and often there will be more corrections.
The main factor of cryptocurrency’s instability is its demand and supply. For example, Bitcoin’s price surge and drop are more frequent and severe because it does not produce value as a company would.
Emotions can have a big impact when price is dependent on demand and supply. Opinion from experts and influential people or any sudden news on its development can make a huge impact on its price as well. So we recommend newcomers to wait for the dip instead of jumping on the high price bandwagon. For instance, you could have done some safe investment few days back when Bitcoin price had dropped below $2100.
The main issue with this strategy is, how to know what the rock bottom of the dip is. Honestly, you will never know because no one can predict the future. That is why by keeping the history on cryptocurrency dips and surge draw a safe line and wait for the right moment to invest. It is better no to invest all in one time but some people don’t care about short term losses and hold their investment until its value surges.
Despite all the facts mentioned above, we recommend you to play safe and buy the dips. In this regard, you can invest through Bitcoin Revolution which is a trusted web app for Bitcoin trading.
Keep your Emotions in Check
To run a successful business, you need to keep a cool head on your shoulders. If you are losing vale in cryptocurrency investment, remember why you bought this currency and why cryptocurrency is value right now. Keep your cool and wait for the right moment to utilize your investment to gain profits but it is also hard to know when is the perfect time to sell.
To avoid confusion, it is better to set goals like if you want to sell when your investment is 10 fold or 20. This way you will be able to keep your emotions in check. Make sure to stay true to your goal if you set a high target value.
Cryptocurrency value is based on demand and supply so it is heavily influenced by the emotion of crypto investors. Dips in crypto currency are temporary and can be seen as a good investment opportunity.
Just like stock exchange you cannot predict if the crypto market is going to surge or hit rock bottom so it is not wise to invest all your savings at once. It is possible that you got lucky in the past and gained considerable profit but saving something for the future will always benefit you. So spend wisely when you are investing, especially in crypto business.
You can reduce the risk factor in crypto business, for instance instead of buying 1 Bitcoin for $2500 you spread this investment in 10 periods buying 0.1 Bitcoin on each go. This will ensure that you will not pay too much but it may not get you the best reward either. it is a good strategy for beginners and you can always go big when you got the hang of it.
You can increase the reward by combining the knowledge of dollar cost with buying the dip. Keep an eye on the dollar cost and buy some cryptocurrency every time when there is a dip.
Diversity is the Key to Success
Diversity is the key to minimize the risk in cryptocurrency. If you invest all your savings in only one investment then you are prone to the risks that can impact only single investment. For the beginners it is very difficult to identify best opportunities while investing in BTC, only a true player who had already gained from cryptocurrency can benefit from such events so it is better to play safe and go with diversity when investing in crypto business.
If you want to be successful in crypto business, you need to know what events can inspire surges and dips. Also it is better to invest in different crypto currency instead of only one like Bitcoin. You can also get some commodities, bonds or stocks with is not related to cryptocurrency to lower the risk of lose if crypto world goes down.
Always Invest With Spare
If you are new to this business then it is wise to only invest the money that you can spare. Once you know the rules and the risks then you can invest more in Bitcoin, Ethereum or Steem. First rule of business id that do not invest critical money like what you save for medial or bills in any business unless you are 100% sure of the positive and timely return. So don’t invest money that you can’t afford to lose because if you get an unexpected bill, you may have to sell your investment for the worst price.
We hope that these tips will help you with crypto investment as they have helped many before. If you follow buy the dip rule then you will be able to invest safely in this business and benefit from it. Be smart, use diversity and keep your emotions in check if you got BTC or any crypto currency to gain the maximum outcome from your investment.