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Investing in cryptocurrency is a science. You have to think twice before you go down this rabbit hole. In fact, people who believe that they will get in when prices are rising to avoid missing out are the biggest fools, and they usually have to resort to cutting their losses when prices fall.
What makes one think that there is such a thing as free, stress-free money out there just up for grabs beats us. It’s an enigma that’s forever sealed inside an envelope addressed only to imbeciles. Thankfully, we’re here to make your life easier and help you understand how to invest in crypto!
The Pipeline
Trying to invest in cryptocurrencies is good. Not knowing enough and trying to “ride that gravy train” isn’t good enough. At best, you’d suffer marginal losses and lose all interest, but at worst, a rug pull will multiply your savings by a neat, round 0.
The pipeline that we suggest you follow is simple:
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Do your research carefully.
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Care for the technology.
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Believe in something.
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And then invest.
Of course, there are many resources when it comes to getting quality help with cryptos, so make sure to look through expert articles, studies, and predictions from digital innovators. Tracking the cryptocurrency space for recent innovations and news can help you make wise decisions about what currencies to invest in and when.
Don’t Overspend
Only invest as much as you can afford to lose. This eliminates panicking. Remember, get-rich-quick schemes are almost always a scam or a daydream, so always be calculative.
“Yay, crypto = to the moon = digital gold = rolling in riches.”
No. Sadly, that’s not all the same. That’s not how the world of cryptocurrency investments works.
When you make gains and see how good the technology really is, buy more steadily. When your gut tells you that it’s time to get out, get out.
Here are some tips to always keep in mind:
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Before venturing into cryptocurrency investments, establish a clear and manageable budget. Determine the amount of money you can comfortably afford to invest without jeopardizing your financial stability or compromising essential expenses.
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In the ever-changing world of cryptocurrencies, it’s not uncommon to witness sudden price surges or significant gains in certain assets. However, acting on emotions like FOMO can lead to rash decisions and buying into the hype without conducting thorough research.
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Diversification is a fundamental strategy in any investment realm, including cryptocurrencies. Spreading your investments across various crypto assets helps reduce exposure to volatility in any single purchase.
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Take the time to educate yourself about different cryptocurrencies, their underlying technologies, and the factors that influence their value.
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Assess the project’s fundamentals, team credentials, technological innovation, and market sentiment. While higher potential returns often come with higher risks, conducting due diligence can help you make informed choices and minimize potential losses.
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The cryptocurrency market can be highly volatile, leading to price swings that may evoke strong emotional responses. Avoid making hasty decisions based on emotions like fear or greed. Instead, develop a disciplined approach to investing, staying committed to your long-term goals, and maintaining a rational outlook on market movements.
But all of that is easier said than done. Confidence comes with time and experience, and it’s important to invest gradually in smaller increments.
Hodling
The term “HODL” is used by crypto investors to “refuse to sell their cryptocurrency regardless of the price increasing or decreasing.”
Actually, it was just a misspelling of the word “hold” on Bitcointalk. Forbes has a whole article on what actually happened in 2013 that led to this moniker.
The idea is just to stay invested. Remember these truths:
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Regardless of what others say, no cryptocurrency is safe from volatility. It’s more volatile than the share market and, surprisingly, even more volatile than the logarithmic average mood swing quotient in Arkham Asylum.
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Dips happen due to various reasons that cannot be predicted for the most part.
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Don’t panic. You’re in for the long term.
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It’s generally a good idea to uninstall apps if you find yourself checking the prices and freaking out about the losses.