Home Tutorials How to Invest in Cryptocurrency in 2020 – 10 Must-Follow Tips How to Invest in Cryptocurrency in 2020 – 10 Must-Follow Tips Share on Facebook
How to invest in cryptocurrency in 2020 (Last Update: Feb.21) – The Cryptocurrency world is filled with scams, frauds, pump & dump schemes and dozens of other ways by which people can steal your money.Along with that, the excruciating volatility of the market doesn’t help either.
It is easy for any new coming investor to be scared off by a market that is already infested with so many money-losing schemes.But then, don’t we always say “with greater risk comes greater reward”?
In a market that is still nascent and budding, there are as many ways of making money as there are of losing it, if not more.It just a matter of who gets here first.
Relate: How to Invest In Bitcoin (BTC) – A Beginner’s Guide, Reviews & Step-by-Step Tutorials
To ensure that you are not scared off by the overwhelming wave of uncertainty, you have to make sure to avoid mistakes.
Be sure to equip yourself with a strong base, that’ll act as a safety net protecting you from any harm.How to Invest in Cryptocurrency in 2020
Before you dive in the world of cryptocurrency investing, here’s a list of Top 10 things you should keep in mind.1.
DYOR
Now, the most important thing that an investor should keep in mind is to DYOR.DYOR stands for Do Your Own Research, and it means exactly what it says.No matter what sector you are trying to put your money in, be it stocks or real estate or crypto, there is no alternative to hands-on research.
With cryptocurrency, like any other asset class, there are dozens of variables that can help predict the future.The variables can range from the idea of the project, development team, nature of the market, type of token and so on.2.Know Your Risk Preference
To ensure that the daily activities of the market do not affect your mood, every investor needs to know and analyze their risk preference.For instance, if an investor’s risk preference is low and it would not suit him to get into a market that is prone to high volatility and unstable returns, he should not get into the crypto market.It’s essential to learn how to invest in cryptocurrency or risk loosing everything.
The cryptocurrency market is known to be volatile and will continue to be so in the near future.
After getting comfortable with the risk, the investor can move forward with finding projects that match his preference and goals.3.Use Trusted Exchanges
Settling upon a trusted and secure exchange can be the difference between being safe or getting hacked.An exchange is a place where you can buy or sell cryptocurrencies .
Historically, centralized exchanges are prone to attacks, and dozens of them have been forced to close their operations due to severe losses.
Investors are advised to research and choose exchanges that best suit their needs and, at the same time, are proven to be safe.
4.Diversify the Portfolio
It is true when someone said not to put all your eggs in one basket.The concept of Portfolio Diversification has been a centuries-old strategy, yet it is relevant now more than ever.
Portfolio diversification means to expose oneself to a variety of assets, instead of a few, so that when one goes down, its effect is compensated by the others.
A diverse crypto portfolio should contain tokens that range in their functionality, i.e., utility tokens, security tokens, and remittance mechanism.
Also read: How to Invest In Ethereum (ETH) – A Beginner’s Guide, Reviews & Step-by-Step Tutorials 5.Consult Various Sources
A reasonable strategy while researching a project is to make sure you consult various sources.Hearing different opinions can be healthy as it will prevent you from being biased or getting emotionally attached to any particular project.
One should make sure they are certain about what they want to invest in.There are several resources available online that can help one to circle down on the right project.Some of them are: #1, of course is CryptoZink.io Project Telegram Groups .
