Riding on bitcoin’s growing popularity, many other crypto projects on blockchain technology emerged in the last decade. Bitcoin’s glide as high as $ 61330 in Oct 2021 and its recent fall to $19042 speaks for the highly volatile nature of the crypto. And then, big-gun investors like Elon Musk joining the bandwagon further boosts the speculation and credibility of crypto.
All this while, regular folks feel bitten by the FOMO bug and yet keep sitting on the fence due to a lack of know-how. Crypto Competitions shares how regular folks can invest wisely to profit from the crypto market.
Invest in a small percentage:
The good news is that you don’t have to invest all your money to set foot in the crypto market. To start with, you need minimal investment for crypto.
Since you realize it’s a risky and volatile asset, segregate only 10-15% of your total investment capital for crypto. The rest can go to traditional and safer instruments. “This will ensure diversification of asset class. Strategically it will be wise if you buy crypto in small amounts regularly over time,” shares Crypto Competitions.
Research Well:
“Financial investment needs due alertness. If you thoroughly research the hard facts behind a crypto project or why a community has rallied or not rallied around it, you will save yourself from any future disappointments,” adds Crypto Competitions. Invest only after you have devoted enough time to understanding a particular coin or its future sustainability. Do not choose just because the price of a coin is low, and you see a chance of buying more units for future profit. More often than not, they have low liquidity.
Diversify portfolio:
While investing in stock or bonds, the best advice is to put your money across a diverse spectrum of funds.
The same prevails true in the case of crypto investment. Invest in multiple crypto coins with potential and high liquidity. Crypto Competitions shares, “Diversification not just reaps you rewards in case of general appreciation but saves you from total loss in case anyone coin performs poorly.”
Stay Away from Hype and Scams
“Think twice before trusting random communities or investment pros on social media giving you tips on crypto investment,” says Crypto Competitions.
They promise you quick profit. They create false hype and pump people’s enthusiasm around a coin, only to dump them midway. In the same way, beware of websites masquerading as legitimate crypto companies, sending out lucrative offers. Always stick to the verified websites and crypto wallet platforms. This will ensure the safety of your investment.
