If you have lived on this earth for long enough, you must have heard about investing. Cryptocurrency is a relatively new player in this field, although Bitcoin and other cryptos managed to give a lot of people millionaire status, in a relatively short time.
The number of cryptos on the market might seem intimidating, but don’t worry! In this article, we want to present to you the best options coming from advanced traders on how to invest your cryptocurrency in 2021. We want to make sure you do not get lost in all the hype and noise coming from the market, so we will present you with the most reliable options.
Tips from pros
The best tips usually come from people who made it big in the cryptocurrency world. You can definitely learn a lot from these people.
Firstly, you need to know that, at the moment, there are many options on the market. There are, of course, some cryptos that are more trustworthy than others, but usually, especially with the new coins, you can’t really know the ones which are scams until they do a pump and dump. In the world of cryptos, there are a lot of options to make money, from bitcoin roulette to cryptocurrency dividends, but one thing is certain: don’t put all your eggs in one basket, as scams happen. We have seen this happen a lot lately and this is why we advise you to invest in more than one crypto and to spread your risk.
Learn first, buy later
Another important factor is that you need to know how crypto works before investing in it. The best way to do this is to check out their white paper and/or roadmap. These documents will give you a good idea of what the coin is about and how it should work in the future. You also need to know if the coin already has a working product or not. What is their development plan? How active is their community? This is something else you need to find out before investing in any cryptocurrency.
You need to put yourself in a position where you are ready to lose some money when investing it into cryptocurrency. This is not a field for those who have weak stomachs.
After you have done your research, you need to figure out which cryptos to invest in according to your risk tolerance level and investment goals. If your goal is just to make some quick cash and play around with your money, then you should probably go for some ERC20 tokens since they offer quick profits and easy payment methods. This is an ideal option for those with limited capital, who want to test their luck and see how things are going to turn out.
The biggest advantage of this option is that you can easily move your money around, with no problems at all. On the other hand, if your long-term goal is to earn from investments, then you need to put most of your money into stable coins. These include coins like XRP Ripple or Ethereum since they do not fluctuate as much as most of the other cryptocurrencies do.
Crypto Trading Tips & Strategies:
We mentioned above that there are many different ways of trading cryptocurrencies, but we will list the most common ones here:
This is one of the most common ways of trading cryptocurrencies. It involves holding an asset for one day or less and then selling it when the price fluctuates high enough. Day trading is preferred by those who have a very tight schedule and cannot be online all day long. It also involves more risks, since you can lose money really quickly if you underestimate the market trends and make a bad choice.
You need to stay updated with what’s happening on the market if you want to become a successful trader. Check out news websites and follow social media accounts from your favourite cryptos.
Buy Low & Sell High
The old saying goes like this: buy low and sell high! The same applies here and it couldn’t be simpler. However, this doesn’t mean that you should wait for the price to go down, since this could take days or even weeks. You should always be checking what the prices are doing and only invest when you are sure that the price will go up soon.
Many online tools can help you check the price trend of your favourite coins and tokens in real-time. As a beginner, always stick to well-known coins and tokens, such as Bitcoin or Ethereum. The more famous they are, the less risk they carry and the easier it is to make some profits with them.