5 Things to Double Check On before Investing in Crypto
Investing in cryptocurrency is one of the hot trends nowadays and for a good reason – it’s the future currency. Like it or not there will come a time when people will move away from cash and the traditional system of banking. This makes sense when you think about it, Sweden, for example, is already transforming into a cashless society. While we’re still in the early stages, as people move away from cash, they’ll gravitate towards cryptocurrency in due time.
1 Know what you’re getting yourself into
As a rule of thumb though, before investing in anything, you should always double check on what you’re getting yourself into. Unfortunately, the crypto world has also been associated with scams in the past. So, better safe than sorry. And now, it’s easier than ever to get a second opinion from an expert about a particular altcoin before you invest in it. If you want to draw your own conclusion though, software like Bitcoin Profit has been reviewed online multiple times and is a great place to start. If you want to expand your portfolio, you better make sure to go over all of your potential solutions and research them thoroughly.
2 Thorough research
There is no such thing as enough research. Try to research as much as you can about a specific cryptocurrency before you so far as for think about investing in it. In the crypto world, and not just there, the term DYOR is a popular one as it stands for – do your research. So, start with their site, they’re ‘about us’ page, the whitepaper (this is the most important step) and go from there.
3 Think long-term
The term ‘holding’ or ‘hodling’ is another important one and essentially it says you should hold on to your coins for the long term, instead of ‘shorting’ them for the short-term profit. So, when investing in a coin, ask yourself – do you believe in what you’re investing? What is their vision? Will they stick around in the future?
4 Understand the risks
Another rule of thumb in the crypto world is that you should never invest more than the amount you’re willing to lose. Makes sense, right? It’s easy to fall for the hype when everyone’s raving about a specific altcoin that has the potential to the moon and if you think that’s the case – the more you invest, the more you profit, right? Well, this happens far too often, so in short: don’t bite off more than you can chew.
5 Track your funds
Finally, if you do decide to invest in a coin, it’s essential you start tracking your funds and investments. There are many tools and portfolio apps that do just that. And if you ever want to gain experience as a seasoned crypto trader, you should be on top of your investments – see how they grow, what are your margins, and so on. The next time you come across a similar situation, you can check back on your past investments and see how the coins might react, you never know what’s going to happen.