Cryptocurrency is no doubt an exciting market for investors, and often very lucrative. However, it can be a risky business as well, and profits are not always guaranteed.
This article highlights some beginner guide that will help you enjoy your cryptocurrency trading experience.
• Only Invest Responsibly
During the recent crash in January 2018, investors recorded a massive loss. This frustration and losses came at the cost of broken monitors, smashed laptops, and enormous monetary loses. While the rules are not in a more particular order of importance, it’s safe to assume that this is the most important rule.
Pay Attention to the Appreciation and Depreciation of Bitcoin
Most altcoins (cryptocurrencies except Bitcoin) are pegged more closely to Bitcoin. If Bitcoin price appreciates drastically, altcoins price can plummet as people try to exit altcoins to ride the BTC profits; also, if Bitcoin prices decline sharply, altcoin prices can depreciate, too, as people exit altcoins to exchange back to fiat.
- Diversify with Your Investment
While the tendencies to earn more increase with the amount of money you invest in a coin, it also leaves you vulnerable to losing the invested funds. It’s advisable not to rely on one investment as a crash will signify a massive loss for you.
• Don’t be Greedy.
As a coin grows, the greed inside us tends to grow along with it, and we could end up losing with a sudden crash. Consider taking a profit if a coin increases by 30%.
• Follow Cryptocurrency News
Keeping up to date with cryptocurrency news is essential; this way you get firsthand information on upcoming developments before the majority of investors; you make a swift decision on getting in or out of a coin, giving you the upper hand before a possible crash and possible loss of money.
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