Cryptocurrency Investing Tips That Will Help You Trade
These cryptocurrency investing tips will help you get closer to your investment goals—and might help you become a Bitcoin millionaire.
Being a Bitcoin billionaire is a dream that is achieved by very few—but desired by many. Most of us missed the Bitcoin gravy boat, but that doesn't mean that you have to assume that there's no longer an opportunity for profit. If you know how to handle your crypto well, you can make a huge profit and even set yourself for life.
Before you look into Bitcoin mining hardware, or try to calculate Bitcoin mining profitability, give trading a try. These cryptocurrency investing tips will help you avoid the pitfalls of crypto while getting all the perks.
Brokers are not the way to go if you want to invest easily. One of the best cryptocurrency investing tips as far as cutting investment costs goes is to stick to exchanges.
CoinBase is a reliable exchange for most people, but after a while, you might want to check out other exchanges after you get situated and learn more about crypto markets.
Exchanges also have the added perk of limit orders, which work a lot like what you'd see in the stock market. By limiting the maximum price you'll buy and the minimum sales price, you are able to reduce loss immensely during the ever-volatile world of crypto.
Don't be a volatile trader.
If you want to avoid losing a lot of money, don't be one of the investors that deals with going "all in" or selling everything they have when the market starts to tumble. A better way to deal with long term trading is to "ladder" your buys and sells.
Laddering means that you buy and sell portions of your cryptocurrency holdings at different times. This way, you get an average sale price that's higher and also prevent selling off shares that might end up returning to a better state.
This is one of the most important cryptocurrency investing tips you can hear, primarily because of the benefits you reap following it. When you know more about blockchain technology and learn more about what makes a cryptocurrency capable of making a long term profit.
Udemy has a slew of excellent courses that teach you cryptocurrency investing strategies—and also show you how to avoid scams that deal with crypto. Online cryptocurrency investing courses can help you learn everything you need to know to be good at.
Buy low and sell high.
Just like with stock market investing, buying low and selling high is the ideal. This is true with short term trading and long term trading. Doing the opposite will end up causing you to lose money.
The easiest way to buy low and sell high is when the crypto market dips. Buy when the coins are worth less, and then when they recover, you're able to turn a profit.
This often means taking a risk and separating out emotion from investing. That's not easy. However, the payoff is worth it.
You can't buy dips if you already invested all the money you have.
Part of the cryptocurrency investing tips we've mentioned so far involved buying low or selling high. This means that you need to really keep an eye out for dips. Dips occur when digital currencies react to market trends and suddenly fall.
If you believe it will rise back up, then dips are the perfect times to buy. However, you can't buy if you spend all your money regularly. Keep around $100 or so around just for a moment where the market crashes.
Do not invest exclusively in crypto.
As much as we are happy to say that cryptocurrencies can offer a lot of profit, there's not a lot of wisdom in putting all your eggs in one basket. Cryptocurrency is incredibly volatile, and that can make it very dangerous. There's a reason why it's considered to be one of the most dangerous investments you can make.
If you want safety, you need to diversify your portfolio. Get some stocks, ETFs, REITs, and maybe a couple of more basic bonds or high yield savings accounts.
Read the white papers and know the signs of a scam.
Scams are a dime a dozen in the cryptocurrency world, and a lot of cryptocurrency investing tips will warn you about them. If you fall for a Bitcoin scam, there's not much you can do to actually salvage the money you lost. Bitcoin's unregulated.
The best way to ensure that you don't end up a victim of a Bitcoin or cryptocurrency investment scam is to read up the signs of a scam and run the moment you see an issue like this.
The easiest way to ensure that you avoid being a scam victim is to read the white papers of any Initial Coin Offering you want to invest in. If it doesn't seem legit, don't invest.
Learn to value coins in terms of Bitcoin.
Bitcoin is the gold standard of crypto—and it's the one with the most staying power. If you want to really kill it on exchanges, use Bitcoin as a reference rather than the dollar. Bitcoin really is the international standard here.
This is one of those rare cryptocurrency investing tips that can help you understand how to better work the system.
Find communities and resources that you trust.
If you're looking to learn insider cryptocurrency investing tips or just learn the ropes of crypto, the best way to do it is to go online and find some good resources. This list of cryptocurrency mining and trading resources will prove to be useful.
That being said, there's also something to be said about community that can help you improve your focus on crypto investing and give you perspective on what you're really doing.
Diversify your crypto!
Finally, one of the best cryptocurrency investing tips you can learn is to diversify your cryptocurrency portfolio. The more coins you invest in, the better the chances are that one will explode. Diversify, and you'll win better returns and have better overall outcomes.