Investing in cryptocurrency is not an easy task, and not everyone can master strategy and planning. Still relatively new, the volatile industry has made some investors millionaires overnight, but left a few others penniless. How to not only stay afloat, but thrive when it comes to crypto investing? Experts from leading cryptocurrency firm Arkham have revealed the top three tips to help investors protect their investments through three studied techniques.
Limit trend following to the fashion world
Getting carried away by every passing trend is all too easy in the modern age of social media. You see 10 different people all investing in the same project, and suddenly you start losing your own common sense?
Arkham experts say, “We see it every day – terrible investment decisions made by countless new and seasoned investors. It’s not that they all ignore the history of the project or the dire predictions. But they just choose to turn the other way and follow. Trends are fashion, not cryptocurrency.
Message received: trust your research and avoid passing trends.
? Liquidate often
While patience is good, too much patience in a fast-paced environment like crypto can’t do you much good. If you think the market isn’t in good enough shape to invest, don’t let your capital stagnate. Move your money in a way that it is positioned for gains.
Arkham also warns investors: “Don’t be greedy. Don’t wait for the next bull run. If there is a big boom, you sell. You don’t expect a bigger boom.
Additionally, millions of investors have fallen prey to digital hacking attacks, so Arkham says you can never be too careful. If possible, keep little money in your digital wallets as these are prone to attacks. Even with full security, there have been instances where people have lost their entire life savings to hacking attacks within seconds.
To avoid such an unfortunate fate, be sure to invest your funds or liquidate them at the earliest.
?Crypto investments don’t offer foolproof capital gains or primary security?
Remember: it really is a gamble. As researched as it is, investing in crypto is not the same as, say, investing in a fixed deposit. There is no kind of certainty in crypto investments with turbulent conditions and a fair amount of volatility. The risks are far too many, with addictions to many factors beyond your control. This means that your efforts must be devoted to risk aversion.
Arkham expresses that risk aversion means going all-in is not advisable. Prepare to lose all of your investment capital, so strategize your investments and be sure to save for rainy days.
From knowing when to enter the market and choosing the right time to quit, to choosing the right projects to support, the world of crypto investing is a real maze.
“Investors are undermining the complexity of the crypto ecosystem. As experts, we spend nearly a decade of our lives trying to learn the ins and outs of this industry. As we try to share our teachings, tips and tricks with the world, we always suggest that everyone rely on their common sense.