Based on the growing popularity of bitcoin, many other cryptographic projects on blockchain technology emerged in the last decade. Bitcoin’s slide to $61,330 in October 2021 and its recent drop to $19,042 speak to the highly volatile nature of crypto. And then big investors like Elon Musk joining the bandwagon further increases the speculation and credibility of crypto. All this time, regular people are bitten by the FOMO bug and yet they are still sitting on the fence due to lack of knowledge. Crypto Competitions shares how everyday people can invest wisely to profit from the crypto market.
Invest in a small percentage
The good news is that you don’t need to invest all your money to set foot in the crypto market. To get started, you need a minimum investment for crypto. Since you realize that it is a risky and volatile asset, set aside only 10-15% of your total investment capital for crypto. The rest can go to traditional and safer instruments. “This will ensure diversification of the asset class. Strategically, it will be prudent if you buy crypto in small amounts regularly over time,” shares Crypto Competitions.
“Financial investment needs due vigilance. By thoroughly researching the specifics behind a crypto project or why a community has or hasn’t rallied around it, you’ll save yourself from any future disappointment,” Crypto Competitions adds. Invest only after you’ve spent enough time in understand a particular coin or its future sustainability. Don’t choose just because the price of a coin is low and you see the possibility of buying more units for future profit. Most of the time, they have low liquidity.
Diversify the portfolio
When investing in stocks or bonds, the best advice is to invest your money in a wide range of funds. The same prevails in the case of cryptographic investment. Invest in multiple cryptocurrencies with potential and high liquidity. Crypto Competitions shares, “Diversification not only reaps rewards in the event of general appreciation, but saves you the entire loss in the event that someone underperforms.”
Stay away from scams and scams
“Think twice before relying on random communities or investment professionals on social media to give you cryptocurrency investment advice,” says Crypto Competitions. They promise you quick profits. They create false publicity and pump people’s enthusiasm around a coin, only to dump them halfway through. Similarly, be wary of websites masquerading as legitimate crypto companies, sending lucrative offers. Always stick to verified websites and crypto wallet platforms. This will ensure the safety of your investment.