Cryptocurrency investment isn’t an easy feat, and not everybody can master the strategy and planning. Still relatively new, the volatile industry has made some investors overnight millionaires but left a few others penniless. How do you not only stay afloat but thrive when it comes to crypto investment? The experts at leading cryptocurrency firm Arkham revealed the top three tips to help investors protect their investments through three studied techniques.
Limit Following Trends to the World of Fashion
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Getting swept in each passing trend is way too easy in the modern age of social media. You see 10 different people all investing in the same project, and suddenly, you start to lose your own good sense.?
Experts at Arkham say, “We see this every day – terrible investment decisions made by countless novice and seasoned investors. It isn’t that they are all unaware of the project’s history or the dismal predictions. But they simply choose to turn the other way and follow along. Trends are for fashion, not cryptocurrency.”
Message received: trust your research and avoid passing trends.
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? Liquidate Often
While patience is good, too much of it in a fast-paced environment like crypto cannot do you much good. If you feel the market isn’t in a good enough condition to invest, don’t let your capital stagnate. Move your money around in such a way that it is positioned for gains.
Arkham also cautions investors – “Don’t get greedy. Don’t keep waiting for the next bull run. If there is a big boom, you sell. You don’t wait for 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 those are prone to attacks. Even with all the security, there have been instances where people have lost their entire life’s savings to hacking attacks within a few seconds.
To avoid such an unfortunate fate, make sure to either invest your funds or liquidate them at the earliest.
?Crypto Investments Do Not Offer Sure-Fire Capital Gains or Principal Security?
Remember: It is very much a gamble. However studied one might be, investing in crypto isn’t the same as, say, investing in a fixed deposit. There isn’t any kind of certainty in crypto investments with turbulent conditions and a good amount of volatility. The risks are far too many, with dependencies on numerous factors that lie outside your control. This means that your efforts should be dedicated to risk aversion.
Arkham voices that risk aversion means “going all in” is not advisable. Be prepared to lose your entire investment capital, so strategize your investments and make sure to save up for a rainy day.
From knowing when to enter the market and picking the right time to quit, to choosing the right projects to back, the world of crypto investment is a real labyrinth.?
“Investors undermine 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. While we try to share our teachings, tips, and tricks with the world, we always suggest that everybody rely on their common sense.”