Crypto Newbies: My Top 3 Investment Tip for SuccessJanuary 31, 2019
Investing is a wonderful tool to build wealth. Whether you’re investing in stocks, cars, diamonds, precious metals, or baseball cards: it is exciting and gratifying to see your portfolio grow. No one starts to invest with the intentions of losing money. Seems simple enough, right?
Investing in cryptocurrency, in my opinion, is both an exciting and lucrative way to build your portfolio. If your new to the cryptocurrency space and investing, may I suggest of a few simple tips to follow?
Let’s start from the very beginning. You should never invest in anything you don’t understand or can’t afford. For example, I know very little about antique cars. I don’t know what makes an older car so valuable and I certainly would not know where to start, even if I wanted to invest in cars. My point is simple. Assuming I could afford one, why would I buy an antique car if I had no idea what I was doing? It would be an unwise investment decision.
There was a time in my life when I traded “penny stocks.” I knew very little about them and was investing more than I could afford to lose. Guess what? I quickly became frustrated trading penny stocks and quit almost immediately.
Stay away from investing in cryptos if you don’t understand or can’t afford buying them. Sounds simple but please heed my advice.
Make sure you do enough “due diligence” before you invest in any cryptocurrency. What do I mean by due diligence? Read anything and everything about the project and the team. Join their Telegram channel. Is anyone on the team on LinkedIn? Look at their website. Read the Whitepaper. Are the leaders new in the field or do they have a lot of experience? Try sending the team an e-mail. Do they respond in a timely manner? Are they on Twitter? This is just some of the research I do before investing in a project but I think you understand.
My last tip is the hardest of them all. It’s also the most important tip. To be successful, you’ll need to learn to keep your emotions separate from your investing decisions. If you are emotionally tied to every trade or the market volatility keeps you awake at night, you might want to think about NOT investing. There are literally thousands and thousands of books written about investing without your emotions. I can’t possibly cover each aspect in this article. My intentions are to make you aware that the crypto market is volatile. That said, you’ll need to enter your trades knowing that if the price drops 20% or 30% in several days, you’ll stick to your trading strategy and not sell for a loss! Once again, this is easier said than done.
These are my top three investments tips for success. There are more that you’ll learn along the way. Start with these and it will help you form a solid foundation on which to invest successfully.