“Investing in cryptocurrencies is becoming a highly remunerative investment venture. Hold on! It’s not that easy” says Frantisek Hrinkanic, Founder & CEO of CryptoTIps Academy.
Blockchain and cryptocurrencies are new and constantly evolving technologies. This creates volatility and uncertainty around the virtual currency. The technology is vulnerable to hacks and bugs. This leads to a drastic change in the values of coins in unanticipated ways.
A well-crafted strategy will definitely help you thrive in this unpredictable market. Amidst all the doubts and uncertainties, the digital economy has its heroes. The heroes have dug every ebb & flow. Frantisek Hrinkanic is one of those names that’s prominent in the industry since 2016.
Mr. Frantisek gives a list of 5 things you SHOULDN’T do when investing in cryptocurrencies:
Investing Without Research
Investing without researching is the same as diving into the ocean without knowing the depth. You can’t predict the risks nor the profit. Before investing in anything you need to know everything about it. Know about the company, know about the purpose of the company behind the launch of the currency. Would you choose to lose your money or invest some time in research? The choice is solely yours.
Buying The Buzz
So, my neighbor said Ethereum’s gonna move the market next week. He invests in cryptocurrencies so he must be right. Let’s go ahead and invest in Ethereum this time. Would you? No! You should do your own research and figure out which coins can help you achieve your financial goals. Trusting the hype is the worst thing you can ever do in crypto investment. The Crypto market is new to everybody and nobody can perfectly predict the graph of the coin’s performance.
Starting Without A Plan/Goal
Getting into the car and starting aimlessly for a beach without knowing how to reach there is simply a waste of time and fuel for your car. The foundation of smart investment is a solid plan. Your plan must be as detailed as possible. If you find planning a daunting task, consider CryptoTips Academy for helping you with personalized strategies.
While planning your goals, keep 3 things in your mind:
1 Where am I at?
2 Where do I wish to be after X months?
3 How to reach there?
Trading Without Setting A Stop-Loss
A stop-loss is designed to limit an investor’s loss on a security position. For example, setting a stop-loss order for 1-2% below the price at which you bought the stock will limit your loss to 1-2%. If the loss is going beyond your limits you can pull out your money before you lose more.
Investing In Just One Coin
Never be dependent on just one digital currency. What if the currency you invested in suddenly plummets? You’ll lose everything in one go. Diversify the range of your investment and keep an eye on every currency you invest in.
CryptoTips Academy is a consultancy company in the field of cryptocurrencies. If you’re seeking a mentor in this field, Frantisek Hrinkanic is your go-to person. Connect with him on Instagram