Investment decisions and cryptocurrency

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Greetings to you all!!

I think everyone feels curious about making decisions related to investment whoever is involved in cryptocurrency but my personal belief is that random investment in any token is never ever a good decision and good step that's why there are a lot of things that we should consider before making any investment decision and all these things I am going to share today through my post.

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Investment making in cryptocurrency is a great decision but there are different precautions that we should keep in mind by having a clear understanding of market conditions and there are many cryptocurrencies like Bitcoin that have gained significant level of attention in the recent years because of their decentralized nature security which is significant for giving high returns but fluctuations are present in market because it has evolution in its nature so by keeping in mind this nature of cryptocurrency there is need to make informed decisions.

Types of Cryptocurrencies

Basically more than 10,000 cryptocurrencies are present that have unique features and different purposes and I am going to talk about one of the most popular currencies.

• Bitcoin (BTC): This is very first and most widely well known cryptocurrency which is considered a valuable store.
• Ethereum (ETH): This is again one of most significant decentralized platform for build up of smart contracts and decentralized applications.
• Altcoins: Alternative cryptocurrencies are offering some of the unique features and unique functions.

Investment Strategies

• Buy and hold is one of the most significant and long term approach which includes holding your assets for long period of time or for extended by keeping a hope in your mind that it's value would increase with time.

• When I talk about buying and selling cryptocurrencies in short time period then it always means to take advantage of fluctuations or moments in its price and it is almost day trading.

• Diversification is one of the most significant investment strategy which involves spread of investments across different particular cryptocurrencies for the minimization of risks.

• Dollar cost averaging is defined as a process in which respective of the performance of market you invest some particular money at regular intervals so he is also another important investment strategy.

Risks and Considerations

• We all know that cryptocurrency is highly volatile that's why we should keep in mind that any rapid fluctuation can cause a lot of loss for you so it is a risk that always present when you take any investment decision.

• There are different cryptocurrencies and there wallets exchanges and transactions that can be hacked by hackers or manipulators so he is another risk and challenge involved when you want to take any investment decision.

• Stance of government at the regulation of cryptocurrency is evolving or changing with the passage of time which is another challenge to consider.

• Sometime it becomes difficult to buy and sell particular currency due to limited level of liquidity present in it.

Conclusion

In conclusion I want to say that investment decision can give you a lot of profit and even can give you life changing profit as well as it can also give significant losses to you so making investment decision is just like getting involved in adventure but by making certain precautions you can prevent yourself and make yourself from risk that are involved in investing in particular currency. It is it always important to completely have a know how about particular currency in which you want to invest.

Have a blessed day