We all know that the cryptocurrency bandwagon is powered by FOMO. If you are a beginner in the sphere of cryptocurrencies and want to invest in cryptographic tokens, you have most probably been bitten by the same bug. While having great interest is a good start, but to be successful in the crypto sphere it takes more than mere enthusiasm. That’s why we broke down the following tips any beginner can follow to ensure a long way in the sphere of investments in crypto assets.
Now, let’s dive into the 5 main tips newbies should keep in mind:
1. Avoid Joining “Pump Groups”
As previously mentioned, a large chunk of the crypto community is driven by various forms of speculation. To be a successful investor it’s important to give up the urge to follow bullish tendencies and avoid other sorts of speculations from unverified sources. It’s better to stick to reliable strategies instead.
One of these highly speculative strategies to avoid is the “pump-and-dump” strategy. Many pump groups exist that buy a particular crypto at the same time, leading to a massive spike in its price (pump). Then they sell it after making profits (dump). Reliance on such short term gains and excessive risk-taking can often end-up sabotaging long term gains. Also, most profits are made by whales or group insiders, while the common folk are usually left hanging dry.
2. Do Your Research
Investment in crypto assets is very similar to other financial assets. That is to say, they go beyond mere speculations. As an investor, it’s your responsibility to know about all the facets of the company you are investing in. Whitepapers of the crypto projects are mostly available in the public domain (if it’s missing, it’s a sign of lack of transparency). There are also helpful resources like “All Crypto Whitepapers” which contribute to making things easier for the investors.
As an investor, you shouldn’t only be aware of the financial model and stakeholder benefits but also take the product and its technical aspects into account. All of these factors determine the prospects of the company. Thus, as an investor, you cannot cheat on your homework.
3. A Diversified Portfolio
Despite thorough research, market conditions are unpredictable. Therefore, it’s best to have a diversified portfolio while investing in new crypto projects. This strategy allows you a greater resilience to unexpected shocks in a certain sector and helps to weed out the weaker coins in the long run.
Your research will be the guide to choose the right combination of crypto assets, that suits your long term targets and aligns with your strategy.
4. Safety First
In terms of choosing your wallet and other essentials of crypto trading, safety is the highest priority. It’s also imperative to be aware of the risks of different available options. One key is to keep the major portion of your crypto assets in a cold-wallet.
And for the amount you decide to keep online, it’s recommended to choose a verified wallet provider, rather than an exchange. This way, you can have access to a private key and prevent your assets from hacking attacks and server failures.
5. Learn from the Experts
While your own research is essential, it’s important to get help of legitimate experts. Especially for beginners, access to experienced and successful investors increases the possibilities of getting desired results. Over time it can even lead to better learning about the market trends and investment tricks.
Tycoon is a social trading platform that can simplify this complex process. It enables users to indirectly get in touch with traders who have exceptional track records on reputed exchanges like Binance, and allows copy trading/social trading. Through this feature, users can copy the investment strategies of the experts and create a portfolio on the same line for their asset holdings.
Such a feature can be very crucial for new investors as it will allow them to get practical experience into learning. The rating system on the platform helps by giving legitimacy to the skills of experts, unlike other social media platforms where there is no accountability. After all, learning from the best is an investment strategy you simply can’t go wrong with.
Register today and get ready to start your trading journey on the Tycoon platform.
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