With more and more newbies looking to invest in cryptocurrency we have seen many experts like Robert Testagrossa issue warnings about some of the pitfalls that exist within this kind of investment. It is true that this market provides a wide range of opportunities to those who are happy to invest, and today we are going to discuss some of the keys to remember if you fancy diverting some of your portfolio into the crypto market.
This is purely advice and not something which you must do, yet these pointers are certainly worth bearing in mind when investing.
Trust Your Own Research
If you look on a social media platform such as Twitter you will see that everyone has something to say when it comes to crypto investing, and which coins are best. The reality however is that you have to simply trust your own mind when it comes to investing, and your own research. Twitter is a great place to find out about possible investments however, from there you should conduct your own research to find out more about a coin and a project.
Not Over
It is all well and good having a crypto portfolio which is brimming with profits, but it is worth noting than none of that matters at all until you hit the sell button. We have seen examples in the past of people who have had hundreds of thousands of dollars in their portfolio which they never sold. When the bear run hits however, those dollars quickly decrease and you will realize that you never had that money in the first place. It is only yours once you sell it.
Danger Of Sending
When you are sending crypto from one wallet to another you have got to be incredibly diligent that you are writing the digits out in the exact way that you see them. The reason why this is so important is that if you send that crypto to the wrong address, you will lose it forever. There is no banking system to help you out in this kind of situation, so triple and quadruple check before you send.
Diamond Hands
You may have heard phrases such as ‘diamond hands’ and ‘hodling’ and these are phrases which refer to you holding onto your investments no matter what the market is doing. There are two main reasons why people say this, the first is that the market is so volatile that if you panic sell or buy, you are likely to lose money. The second reason for saying this is that no matter how big a dip or crash may be, in the history of crypto the price has always reached a new all time high. The large majority of people within the crypto landscape are investing now, for what will happen in 5-10 years.
Be careful and always make sure that you know exactly what you are investing in and why.