Invest in cryptocurrencies can be one of the most lucrative activities of our life. But if it is done without consciousness, we could easily end up in ruin. For this reason, and so that you can generate great profits with your investments in criptoactivos. Today, on ABC Crypto, we bring to you 10 valuable tips to invest in cryptocurrencies.
1 – Not everything in life is Bitcoin
If you are here trying to learn everything you can about cryptocurrencies. Probably your first introduction to the crypto world was connected in some way with Bitcoin. Whether you heard about it from a friend or family member. You read an article about the cryptocurrencies. Or you decide to investigate more on the matter before investing in these virtual coins. However, even if you’ve reached this point with the idea of investing in Bitcoin, our first advice is to think very well. Because even though the investment in BTC is a very good alternative, it is not the only one in the market. And there is always the possibility that another virtual currency will be most suitable for you. Therefore, first analyzes the situation of the crypto market. What virtual currencies are in the same, how useful have and what is the behavior of its price. It is possible that after performing this research, you decide of all ways to invest in Bitcoin. But then it will be an informed decision and well-founded. And, Who knows? You might see it being a lucrative investor in Ethereum or some other criptomoneda.
2 – Decide how much you invest in cryptocurrencies
Probably not the wisest decision in the world to invest all your savings, your retirement fund and the education fund of your children in cryptocurrencies. Well, that is a decision that you could end up repenting the rest of your life, if it ends up thy way forth evil in the transactions that you make. By the contrary, it is more wise to minimize risk, is to diversify as much as you can your investment portfolio. Including other traditional assets such as bonds, stocks, indices and real estate. Ranking by the percentage of investment in cryptocurrencies recommended that, in the opinion of the experts of CriptoTendencia, around 10% of your portfolio.
3 – Choose which product best suits your needs
Remember that the financial market is not limited only to buy cheap and sell expensive. There are many financial instruments out there, with which you can invest in cryptocurrencies. Some of them, being really lucrative for the investor capable of. Among them, we find of course the futures contracts on cryptocurrencies. Offered by large financial institutions as CME Group and Bakkt. As well as the Contracts for Difference, which you can buy very easily through platforms such as Plus500. So, take your time to investigate each one and their dynamics, before you decide to through which to invest.
4 – do Not invest blindly: format e informate
One of the main reasons for the failed investments in the financial market. It is due to the lack of financial education of the people who decide to get involved in these operations. Which do not possess the minimum knowledge in order to understand how markets function so complicated. However, today may not have gone to University for a degree in finance is not an excuse. Therefore, all the information that might be needed to understand the functioning of the financial markets, and how to make a profit on them. Is fully available for free on the Internet. Therefore, before putting a single dollar in the crypto market, we recommend that you take the time to learn. To know how the markets work, what type of operations you can perform, and what factors influence their movements. And once you have this basic knowledge, you remember keep you informed of the major events of the crypto world. Through websites such as CriptoTendencia that will bring you all the information that can impact the market, and the resume for you in one place.
5 – Choose with care your exchange
Never underestimate the importance of the exchange with which you invest for your transactions. If you do not work in a platform with which you feel comfortable. And that will give you all the functions that you require during the trading process. It will be very difficult for you to obtain gains of cryptocurrencies. Remember, to operate in the financial market may already be sufficiently stressful, struggling only against the trend of the economy. As to fight also against an exchange that is suitable to your needs. So, take your time to decide with which platform you invest, taking advantage of the demo accounts that most of them offer to test your interface.
6 – Be patient
On many occasions, when we engage in the world of cryptocurrencies. We do so with the intention of making quick profits. However, the benefits will never reach to any operation that we perform if we are not patients when making decisions. And is that, many times a trader can sell their cryptocurrencies when the price of the same is going down, a victim of the panic. Without knowing that after a couple of hours, the value of the criptoactivos will rise even above your purchase price. Therefore, the decision making hasty never benefit the trader. It is preferable to relax and take the time necessary to analyze the environment.
7 – Beware of the leverage
Most of the major exchanges cryptocurrencies offer some type of leverage to their users. Allowing them to invest in the market as if they were using more money than you actually possess. Amplifying your gains but also your losses. Therefore, before accepting the leverage offered by any exchange. We must ask ourselves if our investment is safe enough. As for the risk to have losses that would generate the leverage in case the market moves in a different direction. Tether provides multiple advantages for investing in cryptocurrencies
8 – take Advantage of the stablecoins
As we have already mentioned in other lessons of ABC Crypto. Virtual currencies with the largest daily transaction volume in the world, are the stablecoins. Specifically, Tether (USDT), the stablecoin backed by Bitfinex, an exchange-rate peg with the us dollar of 1:1. In a market with volatility in the prices above average. Having the ability to protect our profits in a stablecoin, it is an important advantage that we should consider. And the main reason for the Tether is the virtual currency most used in the world. Therefore, the traders once they have finished operate, or if they want to protect the value of certain earnings. Tend to change that part of your cryptocurrencies to a stablecoin as a Tether. Before removing them in fiat money or make them to convert crypto to continue to invest.
9 – Choose with care a wallet
The storage of your cryptocurrencies is a topic you should give maximum priority. Looking for always keep them stored in the safest place possible. In order to avoid trouble with criminals, always on the lookout for an opportunity to take away your money. Many times, traders prefer to keep their money directly into the exchange where they operate. To avoid wait times on deposits and withdrawals. However, unless you operate in a large exchange with a good security system. Do this always carries risks, so you have to analyze whether or not you should save your cryptocurrencies in a wallet separate.
10 – Stay alert
As in any market, in the criptoactivos opportunities come and go in seconds. That’s why, while you’re trading, you must be alert. To be able to give account of any price difference, or bias, bullish or bearish. That can make you earn money or avoid that miss. To do this it is important to be focused in the trading while you do this activity. Give him the place that deserves the investment in cryptocurrencies, and don’t think that is something you can do while watching a series or playing on the phone. Only in this way, you can be safe from the losses, and maximize your benefits. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.