Prep Yourself Before Getting Soaked into Cryptocurrency Venture

From Newbie to Future Mastery

Investing is not all about luck. All the fancy cars, big mansions and a luxurious lifestyle won’t come easy just because you had a sheer amount of luck.

Market capitalizations of cryptocurrencies as of January 27, 2018.-Wikimedia common

You can only hit the jackpot when you make the right call. You are looking forward to becoming an excellent cryptocurrency investor, you have serious works to do.

Now this article summaries basic strategies that can turn you into real investor from a cryptocurrency owner.

1. What is your strategy:

All you need to have a well-defined strategy. In this way, instead of acting on your emotion, you will have an effective plan backing your decisions. When it comes to working on each type of investment, nothing will help you better than well-defined strategies.

Your risks should be diversified in this manner:

60% — stable low volatile actives

30% — middle risks volatile actives

10% — high risks active (cryptocurrency is here)

In this world of cryptocurrencies, we have such risk activities:

Bitcoin or proved coins like Ethereum — stable low risks actives

Altcoins — high risks actives

ICO Tokens — middle or high risks actives (depends on the company you’re investing in)

If you are looking forward to saving your investment, you should more engage on activities like bitUSD or bitEUR on Bitshares blockchain. The best part of such assets is that they are protected from the high volatility and well-connected with flat currencies like dollar and euro.

Long term investment:

Some investment projects requires time to reach their optimum value. You should right research on the variables so that you can find a well defined path to success. In this type of investment project, you can act like a early investor for long term profits.

Short term investment:

We know that all projects are in continuous development state. All you need to do is invest at the right time and based on your experience and present signs, you can cash in profit in a month, week or even a day also.

If you want to make a balanced investment, you should decide to get your profits on the way when certain milestones are achieved.

What are you going to invest in?

Based on the strategy that you are following, there are different types of investment you can make.

Stable currencies:

If you are looking for an easier investment with low risk, you should go for Bitcoin, ETH, Neo as these are proven technologies with a stable history. It’s true that profits are smaller but, increased transactional volume ensures that you can have an exit any time.

Riskier smaller projects:

The smaller projects are the technologies still in development process so that they can reach their potential gains.

The truth is you cannot invest in such projects with an assured expectation of profitability. In this case, you should do an in depth research and follow the trend on a long term basis before making an investment in such technologies.

Now, you should know how to find a best project. You can join different trackers, read different news and trend updates, follow upcoming ICOs to know what’s the best project that you can invest in.

Strategies For Bitcoin And Cryptocurrency Investors

Investing in highly volatile bitcoins and other cryptocurrencies is risky business. These currencies are all electronic or virtual in nature, and thus have no physical presence. They don’t even have intrinsic value. However, no one can deny that right now these cryptocurrencies are extremely valuable and those who invested in the early days, and held on to their investments, are living the high life now as multi-millionaires, and even billionaires!

If you want to be like these wise investors sometime in the future, then follow these 4 investing strategies to increase your chances for success.

1 – Prepare For Volatility

It’s basically a given for cryptocurrencies that they are going to be extremely volatile. One minute the price is sitting at 5 digits, and the next it’s at 4 or even 3 digits! It’s absolutely unpredictable, and if you don’t take its volatility seriously, you could get in a lot of trouble. You could panic and sell off your crypto so you can minimize your loss.

However, if you’ve braced yourself for scenarios like this, then you’d probably just shut down your computer, or turn off your TV, and lie down and sleep off your doubts. Tomorrow is a different day, the price could go back up, and all will be fine with the world. Being prepared for volatility is tough, but it’s definitely doable.

2 – Proceed With Caution

Do your research before you start investing in bitcoins and other cryptocurrencies. When you’re dealing with hard-earned money, you don’t want to lose everything in one day. You’re investing to make a profit sometime in the future. Don’t go all in without studying what you’re putting your money into.

3 – Diversify Your Portfolio

Don’t put all your eggs in one basket, so to speak. Don’t just invest in bitcoins. If possible, invest in other cryptocurrencies as well as traditional assets like stocks, bonds, and mutual funds. At least if bitcoin prices drop, then you’re not going to be totally in the red. Your other investments will help keep you afloat.

4 – Store Your Virtual Coins In Cold Wallets

Investing is a long-term game, and it is not advisable to keep your cryptocurrencies in online wallets such as your exchange’s wallet, or even your mobile app wallet. Keep your private keys in cold wallets such as paper or hardware wallets since these aren’t connected to the Internet. You can keep small amounts in your online wallets, but the bulk of your investments should be offline.

None of the content is meant as financial advice, it is my own opinion and to encourage new investors to do more research ,all investment will be at one own’s risk . Thank you