BEGINNERS' TOOLKIT FOR CRYPTO INVESTMENT 01

THE BEGINNERS' TOOLKIT FOR CRYPTO INVESTMENT

Just like every other business, the path to crypto investing does not just start on its own. It begins by considering and gaining some vital skills through information, that could bring profits to the investor. Cryptocurrency is still a growing or evolving industry that has huge potential for investment returns.

To begin your journey as a crypto investor, you should put the underlisted into considerations:

• Know your crypto asset before investment

There are several crypto assets even as more are still coming up. You have to understand the crypto asset use case that you want to invest in as many of them have their unique and various functions. There are cryptocurrencies that do not have sustainable cash flows hard assets supporting them.

• Invest what you could afford to lose

You do not have to invest the money that you would use to settle your basic needs in crypto. Investing in crypto requires that you spend on the money that you could afford to lose while making speculations in the market. This would make you to be on a safe side while watching the volatility in the market.

• Risk management
  The crypto market is volatile as prices could go up and could come dowm just in a matter of seconds. As a beginner, need to develop and know how to prevent or at least, minimize your loses when the market goes against your positions.

There are risk management for short-term investtors and there risk management for long term investors. Investing with cautions by seting parameters that would ensure that long or short term market fluctuations do not come to hurt your positions.

• Monitor the market trends

Information drives the crypto market and the technical approach helps to identify the direction prices are taking. While information regarding the changes or developments in the underlying crypto assets could serve as a strong fundamental indicators, understanding and using the technical indicators smoothes it out. By it, you know when to open and close your positions.

• Be disciplined
  Investing in crypto is not to be aproached on making decisions based on emotions. A clear rules are to be set and follow through the market dynamics. There could be tempting times that decisions are made on emotions. Keeping a framework in place like entry and exit strategies would help to avoid consequences that hurts when decisions are made based on emotions.

• Do your research, hold on to fundamental indications

When deciding to invest in crypto, there are funfamental indices that shuold be should be studied in order to make an informed decision. To get a true picture of the crypto asset, as the following questions?

• How is the community engaged with the crypto asset in focus?

• Who are the rivals or competitors in the industry?

• What is the level of adoption or acceptability potential of the asset?

• Who are the founders as well as the developers of the project?

These and some other basic ideas are the first-hand information that could aid beginners while considering to invest in cryptocurrency. Let's keep learning in order to keep earning. I would come around next time.