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A Newbie Guide And Approach To Investing On Cryptocurrency

by Estalontech 8 months ago in investing · updated 6 months ago
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From Newbie to Future Mastery

Photo by Executium /Unsplash.com

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

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.

Crucial Advantages of Investing in Cryptocurrencies

Having emerged as a perfect digital alternative to traditional exchange methods like cash or credit card, cryptocurrencies have achieved an alternative point of view.

There are many people who consider cryptocurrencies as a potential financial medium for fraudsters, criminals and terrorists- especially considering their involvement in ransomware scams and, transactions in dark-web.

On the other hand, the huge value upsurge in Bitcoin have made cryptocurrencies a viable investment option which -with the positive hype surrounding the blockchain technology that supports it- can have a significant positive impact on the wallets and trading practices of new-aged traders.

Digital Currency for Newbie in Cryptocurrency investment

This article we are going to tell you about advantages of investing in cryptocurrencies:

1. Transactions:

In traditional investment dealings brokers, agents, legal representatives can add different types of complications and added expenses to what should otherwise be a straightforward affair.

One crucial advantages of cryptocurrency trading is that it’s an one to one affair. It takes place on a peer-to-peer networking structure which eliminates the role of a broker or middle man in a trade. It allows you to establish a good quality of audit trails and you can have less confusion over what you should pay to whom.

2. Huge Returns:

It’s true that cryptocurrencies have been around for a relatively shorter time but, they can be more profitable than any other traditional investment options. For example, highest return that you can expect from US stock is 20% but, cryptocurrencies tend show huge returns than it. Well, it’s risky but returns are huge.

3. Most Confidential Transactions:

In a traditional transaction process, all your transaction history becomes a reference document for your bank or credit card agency.

In crypto investment, each transaction you make is a unique exchange process between two parties. The exchange of information is done on a “push” basis which means you can transmit exactly what you wish for.

4. Transaction Fees:

In traditional investment plans, transaction fees are taken and that can bite out on your assets, especially when you do a lot of transactions on a regular basis. Since Bitcoins and other cryptocurrencies receive their compensation from the cryptocurrency networks involved, no transaction fees are usually applied.

5. Easier International Trade:

Cryptocurrencies by their nature are not subject to the exchange rates, interest rates, transaction charges or other financial levies imposed by a specific country. Using peer to peer process of the blockchain technology, cross border transactions can be conducted using experiencing no challenges.

6. Independent Alternative:

A lot of experienced wealth investors are a predicting a stock market crash in 2021, Cryptocurrency may be a safer alternative to more traditional investment solutions. Some experts believe that cryptocurrencies will be affected indirectly just like anything else.

7. Your Money is All Yours:

When you keep your money at bank, you are already at the mercy of other people and bank. With cryptocurrency investment, your money stays with you only. You don’t have to depend on financial institution for holding or transferring your money.

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About the author

Estalontech

Estalontech is an Indie publisher with over 400 Book titles on Amazon KDP.Being a Publisher , it is normal for us to co author some of our publications with brainstorm on interesting contents which we will like to share on this paltform

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