How To Become A Professional Cryptocurrency Investor
You might be interested in entering the cryptocurrency markets because of all the hype going on. After all, this topic has attracted over 140 billion USD, so it is worth some attention.
I have prepared some points for you to consider in order to develop your skills and knowledge, and become (almost) a professional cryptocurrency investor.
Don’t think of yourself as the Crypto God
Many have been here much before you, and me, so don’t think you are smarter than the other guys. Don’t assume anything. The truth is that traditional stock investment volatility is around 13%, whereas cryptocurrency volatility is around 50%! That is huge risks for anyone, who is not ready to lose all their money. It is also a chance to make big bucks. So don’t make any moves, which seem smart at the moment, but hold risks, which you are not ready to take just yet.
Do your research and know what you are getting yourself into. While each coin holds different potential, there is nothing new. History repeats itself, so the same way in which you would research a company before investing into their shares, you need to research an emerging new coin and the project details. Here is a great place to implement the Warren Buffet rules in business.
Do Your Research
As mentioned above, you need to research the companies. A great way to research crypto companies is their social medias such as Telegram and Slack. I have discovered the Slack Community of Dentacoin recently. The guys are so informed about all current topics, that it took me a while to know who is core team and who is just supporter. So my advice to you is to join the Slack Communities of the coins you keep on your radar. It is a great way to see how these guys are thinking.
Don’t Count On anyone’s advice
People have opinions. That’s all. It doesn’t mean that what works for you will work for anyone else. I often receive mails from guys asking me what will be the future value of Bitcoin? Who the hell knows this. If I knew it people would pay me millions for just this one number. So do not trust some competent guy in a forum such as bitcointalk.org, where people love sharing their opinions. They are usually paid to promote some scam coins, or they are afraid that they put so much money on the wrong coin, that they try to feel better if they know they can scam someone else into buying that shitcoin.
My conclusion is that nobody is a pro. Everyone is a newbie in this. Do your research and look for opportunities. New coins come up every day. ICO Alert announced almost all upcoming ICOs. Do your research, set some boundaries, ask question if you need to, and be patient. The rewards are worth the the trouble to learn how to invest like a pro.
Getting into the cryptocurrency game doesn’t have to be scary. As with most things in life, the more you know about the topic, the better off you’ll be. “Beginners Cryptocurrency Investment Strategies” assumes that you have already figured out how to actually move money around the internet to buy cryptocurrencies and now you want to invest them in some way. But how do you go about doing that? Is it as easy as calling up your stock broker and buying up shares? Sort of. But not really. Here’s a few strategies for getting into cryptocurrency investment that could help you in the long run.
There’s No Better Time…or a Perfect Time
Like the traditional stock market, the cryptocurrency market fluctuates on a daily basis. Ups and downs abound, cryptocurrency is fluid and keeps investors on their toes with what is happening in the market. Cryptocurrency does have a leg up on the stock market, though, because it’s still new enough that it’s doing very well and a lot of people have made a lot of money in a short period of time. That said, there’s no “gut instinct” that is going to help you when investing in cryptocurrencies. Read the information you can find online, know the companies, and start small with your investments to get a feel for how the cryptocurrency works. There will never be a better time to invest than when you are ready.
Spread the Love Around
Like traditional investment strategies, it’s a good idea to share the wealth and invest in several cryptocurrencies to see how they fair. A good way to do this is to invest in a new cryptocurrency, that is offering digital tokens to revolutionize entire industries. You can also choose a more seasoned cryptocurrency, which offers an anonymous transactions. Building a portfolio with a good mix of new and experienced cryptocurrencies can help you follow trends, spot gaps, and give yourself the most exposure to financial opportunities. Putting all your eggs in one basket, as the saying goes, isn’t a good idea for most things in life, let alone investing.
Invest in Something You Would Use
When it comes to investment strategies, one of the tried and true ways to know if you’ve got a good investment opportunity or not is to determine if you would use the technology or buy products from the company. Could you see yourself working for them? What do you know about the CEO or founding team? If you feel like you could get on board with what they are doing, you could strike gold. Professional investment firms and people who make their millions investing in private companies will tell you that while they invest in the technology, they also invest in the people. After All, the teams are the ones who bring this thing to life, so if you can’t see yourself buying into the founding team, try another cryptocurrency that suits your personality and needs better.
Protect Your Cryptocurrency
When it comes to keeping your money safe, you don’t think twice about going out of your way to make sure people don’t get access to your money. You deposit secure checks in secure banks using secure debit cards and a secure pincode. You diversify your portfolio investments so they don’t cause you to go belly up when the markets go down. You spend money on a wallet that prevents people in airports from stealing your credit card. You even put money in savings accounts that need in-person signatures to withdraw funds to protect yourself from your money. But when it comes to cryptocurrency, people often make the mistake that the security measures in place online are enough. Here’s how to protect your cryptocurrency like your future depends on it. Because it does.
1. Know What You are Getting Into
Cryptocurrency is not for the faint of heart. There is a lot to know if you are going to start buying up digital coins, but luckily, there is tons of information out there to help you navigate this big new world of online currency buying and selling. You need to understand the limitations of what you are buying and know how it can help you increase your economic standing, gain access to new and exciting products, and benefit in the short and long term from your purchases.
2. Have a Plan Z
The preppers are going to outlive us all because they had plan A, B, C and Z for when the world comes to an end. Be like a prepper when it comes to your cryptocurrency dealings. Use secure hard drives to backup your information, don’t leave anything to chance. Don’t count on your computer to hold everything you need, make copies, set passwords, and keep extra copies in secure locations.
3. Use Encryption
The Blockchain is already encrypted, and so is cryptocurrency. But that doesn’t mean that it couldn’t be hacked. There are a number of external encryption software packages available that you can use to ensure your money stays right where it is for a long time.
4. Use a Crypto Wallet
When you start buying up cryptocurrency, you need a place to store it. Crypto wallets are where you will be able to place your crypto coins. There are many options for a crypto coin, depending on the type of coins you have. For example Dentacoin, which is an Ethereum-based token, can be stored in any crypto wallet, which supports Ether tokens. Great wallet options are MyEtherWallet or simply use MetaMask Plugin for Chrome, if you are the only one sitting n that PC or laptop MyEtherWallet even has an offline version, which is good to use. You can also use the so-called hard wallet. A great example is the Ledger Nano S wallet.
5. Limit the Amount of Cryptocurrency You “Carry”
Even with an encrypted digital wallet, you want to limit how much “cash” you carry with you online. This is especially true if you have a smartphone app and your phone gets misplaced or stolen. If you keep only what you need, like real cash, you reduce the risk of being devastated financially should something happen. Or you can simply devide your coins on many different wallets. In other words – don’t place all eggs in one basket.
6. Use the Right OS for You
Make sure your operating system can handle the level of encryption you require for the amount of cryptocurrency you plan on carrying. Some cryptocurrency investors and buyers use completely different machines for their purchases and sales.
7. Use Good Anti-virus Software
All new computers come with free anti-virus software, but like most things in life, when something is free, it’s generally not the best quality. Always spend the money to get a professional anti-virus software that can protect you from hackers and ransomware, malware and other kinds of viruses.
8. Get to Know Two-Factor Authentication Protocols
Two-factor authentication is becoming standard for a lot of online transactions. If you aren’t familiar, two-factor refers to the act of determining your identity two ways: through username/email/password, but also an external source on your mobile phone, tablet or computer that says you are who you say you are.
Whether you are just getting into the exciting world of cryptocurrency of you are a seasons vet, checking your security online is never a bad idea. Change passwords, know what you are in for, know what you are up against, and understand that like fiat currency (the cash we use everyday) digital currency requires as much attention and security — maybe even more.
What Coins To Invest In?
Anytime you decide to invest your hard earned money into a new business or technology, you likely go through a diligent round of research to determine if the company, management team, and technology is the right fit for your dollar. Many people have a hard time parting with their money for their first investment, and if you’ve been burned, even a seasoned investor can shy away from an opportunity if it seems too good to be true.
With the introduction of cryptocurrencies over the last ten years, investment has gotten really interesting. Cryptocurrencies aren’t governed or managed by anything other than the companies who decide to put them out in to the world, so it’s no wonder people are skeptical sometimes. But, there have been too many success stories related to cryptocurrencies to count them out altogether.
With any kind of investing, there are a number of things to pay attention to so that you and your money can stay friends for a long time. Here’s how to tell if a cryptocurrency is garbage before you invest in the business or technology.
Consider the Level of Development
When it comes to investing in a cryptocurrency, you want to determine what the cryptocurrency is going to support. Will it be the creation of a new product, or will it be a stand alone cryptocurrency, like Bitcoin. If the currency is part of a greater offering, you will want to determine how far along the development of the product or platform or service is. The problem with cryptocurrencies is that they are not tangible, and everything you get is data and code. That data and code holds valuable information though, if it’s real, and can provide you with profitable returns when you invest it correctly. Researching the level of development can help you decide if a cryptocurrency is legit or not.
Every startup has a team, whether that is one person or one hundred people. The more you can know about a company or technology before you invest in it, the better off you will be. Some argue that knowing the team is not enough, however, because reputation alone is not always what guarantees success. There needs to be vision and a clear strategy about how the company or the technology is going to make money and become successful. An experienced team would know that they can’t rest on their laurels and they need to provide proof of concepts, strategies and more than projections.
What Are They Putting Up?
ICOs (Initial Coin Offerings) are a great way for new companies to get the capital they need to create a product or technology and bring it to market. But the success of the technology or business can’t rest on the fundraising alone. Like any kind of business investment, you want to know what the cryptocurrency owners have on the line: what have they put up? What have they tried? What are they investing in the technology or product? If it appears to be a situation in which the technology doesn’t get built unless they get $10 million dollars, it’s probably a good idea to walk away.
- 1 Don’t think of yourself as the Crypto God
- 2 Avoid Burnout
- 3 Do Your Research
- 4 Don’t Count On anyone’s advice
- 5 Investment Strategies
- 6 Protect Your Cryptocurrency
- 7 What Coins To Invest In?