Crypto Investing 101 A Simple Guide on How to Invest in Cryptocurrency.
Discover How to get your piece of this new and exciting way to make money online.
Cryptocurrencies have taken the finance world by storm and are the hot new trend in trading and investing. Due to their high volatility, many traders believe cryptocurrencies have the potential to drive returns exponentially higher over the long term.
Crypto has become widely popular in a short period of time as both an investment and a payment method, while high volatility and huge volume make some markets very attractive for day traders.
With more investors and exchanges competing for their attention, understanding short-term and long-term trading crypto dynamics is critical to make a profit while limiting your losses.
The more you know about crypto investing, the better your chances of striking gold in this volatile market. You can only hit it big if you make wise decisions, so start working towards becoming an expert cryptocurrency investor today!
Investing is not all about luck. You can only hit the jackpot when you make the right call and work your way up to it.
All of that hard-earned wealth will be worth something provided you do this correctly because there’s no guarantee a run on success in investing would happen overnight for anyone, even if you have high hopes with crypto trading or making other investments yourself.
The key things should know as an investor is how much risk you’re willing to take, what type of investment strategy suits you best, and finding out where these coins are being traded so you could get access to liquidity markets easily.
If you’re looking forward to becoming a successful cryptocurrency investor, you have some serious work to do. Therefore, this article tells you about the strategies that can turn you into a real investor from a cryptocurrency owner.
Right off the bat, I’m telling you, you need a strategy, a master plan of action designed to achieve your goals.
What’s your Crypto Investing Strategy?
All you need to have a well-defined crypto investing 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 crypto investment, nothing will help you better than well-defined strategies.
It would be best if you diversified your risks. We have plenty of diversification to make in this world of cryptocurrencies, from stable coins to DeFi. In between, trading on different exchanges would also be good for diversification.
If you are looking forward to saving your investment, you should engage in different activities, from buying and holding to automated trading, and maybe throw some NFTs in between 🙂
The idea is to create a hedge to protect you when volatility or a Bitcoin dump hits you.
Long term Crypto Investing:
Some crypto investing projects require time to reach their optimum value. It would be best if you researched the variables to find a well-defined path to success.
In this type of investment project, you can act like an early investor for long-term profits. Proper research is highly recommended. Try to get as close to fundamental analysis as you can.
Short term Crypto Investing:
We know that all projects are in a continuous development state. All you need to do is invest at the right time based on your experience and present signs. You can cash in your profits in a month, week, or even a day.
If you want to make a balanced crypto investing plan, you should decide to get your profits on the way when certain milestones are achieved.
You can choose from scalping with a bot, manually, or slower swing trading, depending on your taste for short-term crypto investment.
What are you going to invest in?
Based on the strategy that you are following, there are different types of investments you can make.
If you are looking for easier crypto investing with low risk, you should go for Bitcoin, ETH, Cardano, and maybe the top ten coins on Coin Market Cap, as these are proven technologies with a stable history record.
Profits are indeed smaller (sometimes), but increased transactional volume ensures that you can have an exit at any time you need it.
Riskier smaller projects:
The smaller projects are the technologies still in the development process to 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 in-depth research and follow the trend long-term before investing in such technologies.
Now, you should know how to find the best projects. You can join different trackers, read different news and trend updates, and follow upcoming developed coins to pinpoint the best project you can invest in.
But be careful of wrong moves, as a bad investment can cost you dearly…
Bad Crypto Investing Decisions You Should be Aware
It’s our state of mind, emotional well-being, and personal traits that can help or hinder our overall decision-making.
If you deeply analyze how you think about crypto investing, you will be surprised to realize how you’re influenced by various emotions, biases’ and experiences.
Some are good, but most of them are bad. If you eliminate the bad ones, you will be able to improve your decisions and performance significantly.
Now, it’s time for you to realize how many you are guilty of. So, put yourself into the spotlight in the following 4 questions and answer honestly.
1. Am I Giving In to Fear and Greed?
Crypto Investing can be scary at times. Tension can arise when the market turns to the opposite direction unexpectedly. Emotions can cause you to flee in the bear market or lead your head into the bull market, directly countering the common fundamental rule of buying low and selling high.
Cryptocurrency Investment history and behaviors have shown us that you will make more successful crypto investments if you counter those emotions. Counter Cycling investing is one of the effective ways to see a profit.
You can buy a quality asset undervalued in the falling market and sell it when it comes overvalued in the selling market.
Fear and greed are powerful but can be destructive, leading us to make wrong crypto investing decisions.
2. Am I Overconfident?
Making a sound decision about crypto investing and making money requires a great deal of confidence, but there’s always a thin line.
People with an inflated sense of making smart crypto investment moves often take a shortcut route and don’t fully think through.
It is always important to have thorough research, objective before investing, no matter how confident you are, which is critical.
All the legendary investors have always been renowned for their extensive research and ability not to go ahead with an investment if its prospect didn’t match their study.
It takes a lot of courage to overturn a decision when the facts don’t make sense. You will be able to dodge a lot of pain by following this approach.
3. Am I Looking Back to History, Not the Future?
Crypto investing is all about the prospect of an asset. When we make some investment, we do it with the hope of having a bright future.
The future is hard (impossible) to predict, and that’s why we should analyze past experiences. That’s a good practice, but many investors have a bad habit of dwelling on the past.
The truth is that it’s not always necessary to see hindsight from the past only as it can be misleading. It is better to focus on the present investment environment and follow the lead indicators to glimpse into the future.
4. Am I Not Acknowledging My Mistakes?
Whether it be pride or stubbornness, there’s nothing worse than not admitting a mistake.
You were confident that a crypto investment would succeed but has not performed well, and you still keep hoping that you will eventually be right.
It is always important to admit your mistakes and cut your losses sooner rather than later.
Are you making any of those mistakes? You’d be the judge. And if you do, I’m glad you’re reading this article so you can rethink your approach and become a better investor.
After all, you’re on the right track, but if you’re reading this and you’re still on the fence about getting started investing in crypto, let me give you 7 good reasons to start investing right now…
7 Advantages of Crypto Investments
Having emerged as a perfect digital alternative to traditional exchange methods like cash or credit card, cryptocurrencies have achieved an alternative perspective.
Many people consider cryptocurrencies a potential financial medium for fraudsters, criminals, and terrorists, especially considering their involvement in ransomware scams and transactions on the dark web. But ain’t the same or worst for “CASH”?
On the other hand, the huge value upsurge in Bitcoin has 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 these new-age traders.
Here are 7 Advantages of Investing in Crypto:
While crypto investing is a straightforward process, it cannot be straightforward. From researching to managing portfolios, so many different things need to be done. And the costs mount quickly.
This is where blockchain comes in. Blockchain technology has helped to simplify several aspects of trading and to invest. Eliminating the need for intermediaries, blockchain gives crypto investors access to a global marketplace, simple and easily without worrying about added expenses.
Cryptocurrency trading also has tremendous advantages over other types of investments, but one of the biggest is that no intermediary is taking a cut of your profits. There are no brokers or third parties involved in the trade, so you don’t need to pay fees to anyone aside from the exchange itself.
This means you can be more confident that every aspect will go smoothly from start to finish, and there won’t be any confusion over who owes what amount when it’s all said and done.
2. Huge Returns:
Cryptocurrencies have indeed been around for a relatively shorter time but, they can be more profitable than any other traditional investment option.
You could say that cryptocurrencies are risky, but so is every other traditional investment. People can make more money by crypto investing than any other traditional investment, even when the risk is considered.
For example, you could show a comparison of crypto returns and conventional stock market ones, then show investors why they would be much better off investing in crypto.
3. Most Confidential Transactions:
The traditional financial transaction process takes your customer information and turns it into a document for storing in their system.
But, with cryptocurrency transactions, the data is held in your own wallet and transmitted to the correct recipient. Because it’s encrypted and you make all of the choices, your personal info stays safe and secure on your end.
4. Transaction Fees:
Transaction fees in crypto are usually cheaper than traditional investment plans. When your assets are tied up in these plans, transaction fees can eat away at your profits.
However, you don’t have to worry about those nasty fees with cryptocurrencies because there aren’t any.
The networks that crypto runs on taking care of the entire system provide the infrastructure needed for the currency (it’s their main job), so no other fees apply to users.
5. Easier International Trade:
Because crypto is tied to no nation or government, it does not encounter the same challenges as fiat currencies regarding exchange rates, interest rates, transaction charges, and other financial duties imposed by a specific country.
The same regulations as fiat currencies do not bind cryptocurrencies; therefore, You can conduct peer-to-peer blockchain transactions in a way that market fluctuations do not affect them.
6. Independent Alternative:
The world of finance is tricky, and there’s never been more uncertainty than right now.
Analysts and financial experts don’t know for certain, yet many predict that the stock market will crash in 2021, while others believe its value will rise throughout 2023.
Regardless of the outcome, it’s important to be prepared. Having the right tools and knowledge is key to making informed decisions about your money.
Cryptocurrency may provide a safer alternative for investment solutions. Some even argue that crypto values could rise significantly during an economic recession when other types of investments plummet.
Digital currency may provide a safer alternative investment solution, as most experts agree on its long-term growth potential regardless of any short-term volatility.
7. Your Money is All Yours:
When you keep your money at the bank, you are already at the mercy of other people.
Crypto investment makes you free from the mercy of other people and financial institutions. You can buy, sell, send or receive money directly with anyone without mediators like banks.
You don’t have to depend on financial institutions for holding or transferring your money. In that way, cryptocurrency solves the problem of not having control over your money.
When you hold crypto assets, the only “institution” is blockchain, where all updates are shared openly with all network participants.
Cryptocurrencies, you own your money, and no one can ever take it away from you — not banks, not governments, not anyone!
At this point, you should be aware of your past bad investment decisions and pumped with the crypto investment advantages, but please allow me to give you one more piece of advice so you don’t fall victim to the 5 most common mistakes new investors make.
Beware of the Top 5 Mistakes That Crypto Investors Make
Investing in crypto can earn you riches. That’s one story we have all heard. No wonder the count of new investors is on the rise.
While success stories pop up as major highlights, very few talk about failures and loss. If you are not smart about investing your money in the right crypto, you are more likely to lose than gain.
Rookie errors and the simplest crypto investing mistakes can land you in hot waters.
Gather maximum insight and keep tabs on strategic crypto investment practices before putting all your money in cryptocurrency.
Biggest crypto investors slip-ups
1. Falling for con tricks
Little do you realize that the world of investment is flooded with scammers. Jumping in with very little knowledge about cryptocurrencies is a bad idea. Thousands of sites keep an eye on new and inexperienced investors. Falling prey to such scams is easier than you think.
Advice: Never invest in a site that promises you a world of profit.
A site might look professional and appealing, or you may hear a word or two about it. Don’t just gun for it. Research and know every little tit-bits of where you are putting your money. If not, you are practically sinking your money.
Don’t rush and randomly click on links. Phishing emails can land you in trouble. Pyramid schemes are more popular than ever. Please stay away from it.
2. Ignorant about cryptocurrency models, charts, and others
Knowledge can help you forge a long way in the world of investment. Cryptocurrency is no different. If you are not aware of the line of trade you are a part of, the pitfalls can be ruining. Understand when to invest in crypto.
Many investors mistake betting on their money when the value of the cryptocurrency is on a surge.
Are you 100% certain that the value will continue rising on an inclining scale? A sudden dip can lose you a great deal of money.
Be watchful about your window of investment opportunity. Keep an eye on the changing marketing patterns. Gather information on price charts.
Always think ahead, strategize, and plan your trading projections.
3. Partnering with pricey and inappropriate exchange
This is a common slip-up among crypto investors. The idea is to put your money in the right cryptocurrency and ensure a good profit margin. Investors often choose to trade via an exchange that is swanky.
Result? You end up paying an exorbitant amount as fees, and the profits are skimpy. In a nutshell, you rarely see any money rolling in.
Step back, think, and weigh your options. Choose crypto exchanges that do the work without charging you riches. Learn about the exchange portal as much as you can. Look into their pricing and settle for the legitimate ones.
4. Breach of security
Speaking of portals, you must never compromise on the security part of the exchange. Hackers are on the loose. Your money can disappear in the blink of an eyelid. Investing a little extra in hardware wallets will keep your funds safe.
Eminent exchange wallets are trustworthy. However, the web world is plagued by hackers. One slip-up, and your funds are gone. Hardware wallets can keep you clear from such nuances and secure the funds.
5. The window of buying and selling
Trading cryptocurrency will make you good money only when you are footing in with a long-term growth projection. The market can fluctuate with the values of crypto spiking up and blowing out in a snap.
Many investors, amateurs, keep selling and plowing their money on new cryptos, like brainless maniacs.
Don’t panic, and don’t buy or sell because of fluctuating values. Learn and scout for crypto trading indications. This will reap your fatter paychecks in the long run.
Crypto Investing Must-Have Research Tools for Beginners
Say you want to get into crypto investing but don’t know where to start. Don’t worry! There are plenty of research tools out there that can help you refine your research before investing.
A crypto research tool is a valuable tool for any investor. Before putting your money in a cryptocurrency project, familiarize yourself with at least one or two tools from this list.
Here are 3 of the best tools to use for crypto research.
Messari: A crypto-data aggregator with many useful tools that you can use to analyze charts about volume, liquidity, prices, etc., and help you make better trading decisions.
Messari compiles and analyzes data and charts from various sources to give investors more information about crypto. One of their great tools is the Messari screener — you can use it to sort coins through various customizable filters.
For instance, you could find coins with a high market cap or the ones that are traded the most. You can also see all the metrics in one window — like price, volume, and coin categories.
Want to find hidden gems in the crypto world? Messari is a customizable tool for finding the best coins to invest in.
Glassnode: A data and intelligence platform that offers plenty for you to explore. The platform uncovers metrics and insights, which you can use for any coin. It also provides data to help you analyze exchange inflow and outflow. You will find it useful for tracking just about anything.
You can find out what’s happening in the crypto market by viewing several things. One of the most important things is the number of addresses receiving transactions. To see this information, you’ll need to sign up for Glassnode.
You can also view other statistics, such as the number of transactions, the number of funds transacted on-chain, and more. To get a more advanced version, you’ll need to go with their Advanced or Professional services.
LunarCrush: A reliable social media research suite organized and trained using crypto-specific machine learning. LunarCrush is the best way to track social media trends in the crypto community.
Crypto is all about social media these days and can have a significant impact on cryptocurrency prices. Keeping up with all the different posts from various sources is nearly impossible, which LunarCrush can do for you.
LunarCrush provides social media coverage for the entire crypto sphere, so you don’t have to worry about monitoring all of your social media platforms. This includes everything from mainstream sites like Twitter to lesser-known forums like 4chan. They monitor hundreds of major social media platforms in and outside the crypto world.
You can confidently make investment decisions based on the data provided by LunarCrush.
Investing in cryptocurrency is a big deal. It’s important to do your research and know about each project’s different tools and price movements. Before you invest, use some of these crypto research tools to get insight into any potential investments.
I know it may be a lot to take in now but think about the rewards once you get them. With these tools, you will be able to make the best possible investment decisions for your money.
When it comes to making decisions about your investments, you want to be as informed as possible.
Should You become a Crypto Investor?
The answer is really up to you, but at least you know that owning some crypto can help diversify your portfolio since it is well known that cryptocurrencies like Bitcoin have no price correlation with the U.S. stock market.
If you truly believe that using crypto will become more and more global in the future, then perhaps it makes sense for you to buy some cryptocurrency to expand your investment portfolio.
In the end, if the long-term investment is not for you, I invite you to check our short-term crypto investment automated solution. The world’s most sophisticated cryptocurrency trading software. Gunbot, Trade CryptoCurrency Safely, Easily, and Automatically.