Investing in cryptocurrency, simple steps for beginnersBarry Copeland 27 / August / 23 Visitors: 36
If you do not have an investment strategy, you probably often find yourself in such situations when, when buying a cryptocurrency, you sell it at the bottom, and then, having lost money, display how the cryptocurrency grows up. Perhaps it happens to you that you like the cryptocurrency and perhaps you even analyzed it. But due to lack of strategy, you don't know when to enter the market. And when the cryptocurrency grows, and you are not in the market, you experience a syndrome of lost profits. All this comes not only from the lack of experience, but primarily from the lack of an investment strategy.
First you need to decide on the type of investment. To do this, you need to clearly understand the investment horizon, that is, for how long, for what specific number of days or months you are ready to be in the market. Based on this, you can choose the strategy that suits you. Either it will be short-term speculation, or medium-term, or you choose a long-term investment strategy for yourself.
Long term investment
Let's start with long term investing as it is the easiest to explain and is great for beginners.
A long-term investor needs to look as broadly as possible at the project in which he invests. It doesn't matter what cryptocurrency you buy. Look and analyze what might happen to it in 5 years or 3 years (depending on what your investment horizon is), and determine for yourself the most important thing that you will do if the cryptocurrency falls.
There is such a thing as the average purchase price. You will always buy at different prices, but your assets will have an average purchase price. This is the average price at which you bought these assets. For example, if you bought Bitcoin at $20,000 and then at $10,000, then your average purchase price would be $15,000. Thus, if you just bought Bitcoin (at $20,000) and kept it in your wallet, if Bitcoin falls to $10,000 and then rises to $20,000, you will not earn anything, but simply go to 0. If you bought additional Bitcoin at $10,000, then as soon as the price of bitcoin reaches $20,000, you will earn. Therefore, the averaging strategy in long-term investment is the easiest for beginner investors. In the stock market, the most successful investors use the averaging strategy. Among them, for example, is Warren Buffett, who constantly only increases his portfolio and, when landing, he buys new shares.
When to sell
Suppose we have taken a large enough position from some cryptocurrency. Now let's determine when we will sell it or, as traders and investors say, when we will "unload our position." The simplest and most effective strategy is the ladder. When you sell gradually, with the growth of cryptocurrency. You determine the levels at which you will sell. For example, every 50% growth of cryptocurrency - you will sell it for 20% of your portfolio and 5%, for example, that you have left, or you can leave 10% and not sell them at all, keep them for the long term.
Where to trade
The rating of exchanges can be viewed on the CoinMarketCap website. The 2 largest and most reliable exchanges are Binance and ByBit. When you register on Binance using our link, you will receive a 20% discount on trading fees for life (this is the maximum possible discount, which not everyone has). When registering on Binance from your phone, enter the code dsxzzyfp When registering on ByBit through our link, you will receive bonuses up to $600 for registration (you can collect them in the "My Rewards" section). All bonuses are valid only when registering using the links above.
Invest only in those projects in which you understand and in the future of which you believe. Do not fall for short-term market fluctuations, but use the opportunities of this market. The market always gives you the opportunity to earn, you just need to be able to wait. If you look at any chart, it will always be undulating. This means that every time after the fall, the chart will go up. You can't guess after which fall the chart will go up, so by buying more on each fall you will earn on any positive price movement. Of course, remember that investing in cryptocurrencies comes with risk.