The cryptocurrency market is certainly a unique phenomenon. First of all, because fundamentally new markets are formed not so often. In addition, cryptocurrencies have an almost limitless potential for practical application in all currently existing sectors of the economy.
However, the interest in crypto for most people is extremely pragmatic and boils down to a few questions. Is it worth investing in cryptocurrency? Is it possible to make money on it? How to do it?
Life itself provides answers to the first two questions. Yes, really worth it. And there are more and more high-profile stories about the fabulous enrichment of crypto investors. However, it should be borne in mind that easy fast money is still an exception. Only a few are so lucky, so you need to think carefully about entering the market, setting yourself up for a long and not always smooth path.
6 tips for beginners from professionals
Don’t chase hype coins
Of course, there are people who are purposefully looking for thrills, and the gambler approach to crypto investing also has the right to life. However, investing all the money in another meme token and hoping for a big profit is a frankly failed idea. if you are serious about investing, it is better to pay attention to serious projects.
Look for information about the cryptocurrency portfolios of large investment funds. These people will definitely not finance some nonsense and the coin is really worth a closer look. And if something does not suit you, you can convert ETH to BNB at any time.
Explore projects
Before buying this or that coin, it is worth studying the goals of the project, its roadmap and history. It is also worth taking the time to research information about the project team, especially regarding their experience in previously launched projects. This is important not so much for the guaranteed profitability of your investments, but for screening out obviously unsuitable assets.
If the project has been around for a long time, study the history of ups and downs, pay attention to the market capitalization of the coin. This will help determine the potential profitability and navigate the risks of acquiring the cryptocurrency you are interested in. Another important indicator is the liquidity of the coin. Find out how widely it is represented on centralized crypto exchanges and how many trading pairs it forms.
Focus on leaders
The young market is gradually maturing and among the huge number of assets, blue chips have already stood out – Bitcoin and Ethereum. Check the ethereum price here if you need it. Long-lived, high-cap coins are probably more reliable and more predictable compared to young projects.
Stock up on patience
Investing is a long game. Truly valuable ideas rarely pay off immediately and make a profit. The higher the capitalization of the project, the less risk, but their profitability in the short term is relatively small. In the long term, these assets will rise in price, but it is very, very difficult to predict how much and at what pace.
Invest as much as you can lose
In an ideal parallel world, all investments always make a profit. In reality, unforeseen turns of events happen. For example, a year ago it never occurred to anyone that the top exchange FTX and its native token were living out their last weeks.
And the crypto-winter that broke out at the wrong time also pretty ruffled the nerves and brought losses to many investors. Growth is always followed by a recession, and this must also be taken into account so that the next turn of events does not become your personal financial disaster.
Strategy and more strategy
Investing a large amount at once is expensive, very risky and … optional. Especially at the start, since it will be extremely difficult to find the optimal entry point without experience. The simplest strategy for long-term investment is to regularly buy additional coins for a small amount. It can be expanded a bit. For example, focus on coins from the TOP-10 by market capitalization and each time distribute the allocated amount to all 10 coins.
Thus, you simultaneously diversify the portfolio, average the purchase price and minimize possible losses. The risks of bankruptcy of top projects are minimal, coins are available for purchase and sale on almost any major exchange, and the easiest way is to buy them on Letsexchange.io.
Here you do not even have to register an account and worry about possible restrictions. There are none on LetsExchange, any user can buy as much cryptocurrency and in such an assortment as it was planned.