Top 5 investment tips to use

This article is meant for users who have already invested in cryptocurrencies before, and will educate them about the general pitfalls to avoid when buying digital coins.

The market doesn’t obey the typical rules of the financial world, as one would expect. Once you become properly acclimatized to the following rules, you will transform from a rookie to a cryptocurrency veteran.

Don’t invest all over the place

Granted there are dozens of cryptocurrencies to choose from and you might be tempted to diversify your investment portfolio as soon as possible. It is not easy to differentiate between the legitimate cryptocurrencies and ones which could be elaborate scams.

The best advice we can give our reader is to conduct extensive research before trading. The general points to watch out for include cryptocurrencies which have high market capitalizations and have stood the test of time. It is a safer bet to start with Bitcoin, learn a thing or two about cryptocurrencies and then expand your portfolio to other options such as Ethereum and Ripple.

Don’t be a trigger happy trader

It can become the new high for consumers because the digital currency market is shifting every inch of the way, to new highs and lows. The fluctuations promise a lot, but if you don’t play your cards right, it can take a lot away, overnight. It is important to not give in to the temptation of the cryptocurrency craze.

Sip from a cup of coffee, activate all the creative regions of your brain and make decisions when you are fully awake because when it comes to digital coins, every click of the mouse requires strategic decision-making.

It’s okay to lose out every now and then

It is important to realize very early on that the world of cryptocurrency is extremely volatile and highly uncertain. Tiny fluctuations in the value of your chosen digital currency can result in a wave of emotions, from panic, to fear, to butterflies in your stomach. Stay away from trade exchanges when you are overwhelmed with these emotions. If there’s one thing we advise our reader to never listen to, it is their own gut instinct.

This is because 9 times out of 10, your own instinct is heavily clouded under emotions and the general sense of fatigue is the telltale trait of most people who are exchanging cryptocurrencies

Watch out for the scams

It is natural to trust a third party making ludicrous claims about immense wealth at very little in the way of investment. They promise much but give nothing. The most notorious cryptocurrency which swindled millions from unwitting consumers is Bitconnect, which experienced a major crash, going from $2 billion in market capitalization to $20 million. This left most investors scrambling to cut their losses but could do little in the way of damage control. Don’t fall for ponzi schemes and try choosing cryptocurrencies with high market capitalizations and longevity.

Choosing the right exchange

The number of cryptocurrency exchanges on the market is growing at an alarming rate. This makes it rather difficult to choose the right one for your money. Fortunately, there are plenty of well-respected digital exchanges on the market, including Buy And Trade Crypto and Coinbase.

They offer minimal transaction fees, high transaction times and strong security support.