Investing in cryptocurrencies has skyrocketed over the years, as it’s one of the most in-demand currencies in the world. At this time, there’s about $2.48 trillion worth of crypto out in public.
Some have reaped the benefits of crypto investment profits over the years; you may see this and want in on the action.
To do this, you need to create cryptocurrency investing plans to get the best return on investment. And this is your guide for how to do that efficiently.
Beginner Cryptocurrency Investing Tips
Investing in crypto gives you many opportunities to turn nice profits. But whether you’re a newbie investor or seasoned trader, some strategies are a must.
The following four tips are recommended regardless of your experience…
1. Hold Long-Term
The first thing you need to prepare for when you invest in cryptocurrency is that you have to be willing to hold it for a long time. It’s no secret that the crypto market is volatile, so you have to be prepared for quick losses at a large rate for a temporary period.
Some people may panic during this time and sell what they have. You must be brave and hang onto your crypto, even if it looks like it’ll dwindle in value.
In the past, there was a period when the value of Bitcoin went up to around $20,000. Then, it went down to as little as $3,000. A year or two later, it went up to over $65,000, and now it’s back to around the $40,000 range.
The point is that this is an unpredictable industry, and you need to go for long-term gains. Hold on for dear life (HODL)!
2. Diversify Your Portfolio
I’m sure you’ve heard the saying that you should never put all your eggs in one basket. Well, that is a must if you want to cover your ass and maximize potential profits.
Like snatching up the big five tech stocks on the stock market has made many people millionaires, you can’t go wrong by investing in the top five cryptocurrencies either.
Bitcoin and Ethereum are the biggest cryptocurrencies by quite a margin. Personally, those are my biggest holdings. Historically, they’ve performed very well.
My recommendation is to get mostly BTC and ETH, some of the other top fives, and then pick some projects that you find promising and toss a little their way as well.
All in all, just don’t toss all your eggs in a single basket. Diversifying your portfolio and utilizing tip one (long-term holding) is a surefire way to gain momentum… And profits!
3. Dial in Your Crypto Security
Lastly, make sure wherever you’re storing your crypto is safe and secure. This industry isn’t regulated, so there’s no recourse for you if someone steals your stash.
You have to be proactive in preventing a possible hack and even protecting any information that can allow someone to physically get to where you keep your crypto, such as a laptop or flash drive.
4. Don’t Invest More Than You Can Afford to Lose
This tips applies to everyone. Doesn’t matter if you’re rich or poor, investing all your money in the markets is a bad idea.
Be realistic with your bets. Don’t forget, crypto is essentially gambling. There is real risk in crypto investing. It’s still very much a wild west world out there.
If you stick to the tips above and don’t invest over your means and risk tolerance levels, you are going to be one step above many new investors.
Intermediate Cryptocurrency Investing Tips
If you’re ready to try taking your crypto game to another level, there are additional ways to earn profits and diversify income earning opportunities.
Here are some tips for you…
1. Try Mining Cryptocurrencies
One thing you can try to do is to mine crypto. This can be difficult to do, and it takes a lot of computer intelligence to understand how exactly to do it.
But it’d be a way to have crypto in your possession without having to pay a substantial investment fee. There are miner hosting sites such as www.quotecolo.com that can assist you with this.
Mining crypto can be a great passive income earning play. It’s worth looking into, but like we said, it’s not for the newbie.
2. Stake Cryptocurrencies
Staking crypto is a great way to earn a passive income. Staking is essentially a way of earning rewards for holding certain cryptocurrencies.
On a basic technical level, staking essentially means making your crypto available for use in the proof-of-stake process.
For example, Cardano is a popular cryptocurrency that may investors believe in and you can also earn rewards by staking it.
3. Get in Early on ICOs
For those unfamiliar with the term, this is when a new crypto coin initially gets released to the public. It’s similar to an IPO in the stock market, where the purpose is to distribute a few shares and get an idea of the value.
This can be a good investment for you if you get in on it early and the crypto ends up having significant value. It can also give you more options for cryptocurrencies than you ever imagined.
For example, there was a point when Bitcoin was worth pennies, and now it’s worth tens of thousands of dollars.
These are some of the things that you need to keep in mind to create a successful cryptocurrency investing plan that can work for you. If you follow these tips, you’ll increase your chances of success.
For more relevant information, check out our cryptocurrency section.