Best Tips For Investing In Crypto Coins
First, let’s start with what cryptocurrency is and the feature of investing in Crypto Coins. A cryptocurrency is one virtual or digital currency that utilizes cryptography for security. The cryptocurrency is hard to counterfeit due to its security feature. The defining feature of the cryptocurrency, and possibly its most endearing allure, is its organic nature; it isn’t issued by any core authority, depicting it theoretically immune into government interference or even manipulation. However, cryptocurrencies present unique challenges when used as an investment tool: if you lose your private key, you lose your money. Here are some ways to invest in cryptocurrency:
Table of Content
- 4 tips for investing in crypto coins (Altcoins):
4 tips for investing in crypto coins (Altcoins):
Don’t put all your eggs into one basket. Make sure you invest in multiple outcomes (I recommend no more than 10% at first). This will help lower your risk of losing everything if one coin crashes from 100 Satoshis to 10 Satoshis overnight. Remember never invest what you aren’t willing to lose!
2) Research before investing
Never invest into something without doing extensive research about it. Always know what you’re investing in and don’t invest based on hype.
3) Set a Stop Loss
Always set a stop loss when investing, especially if you’re new to trading crypto coins (Altcoins). A stop loss is used in trading as a final limit order which will trigger once your chosen price is reached, thus limiting your losses. When trading altcoins, I always set my stop loss at 25% of my initial investment (at least), so if Bitcoin crashes from $10,000 to $8,000 for example, my altcoin would drop from 50 Satoshis to 25 Satoshis.
Do Your Own Research! Don’t invest into something you don’t understand. Make sure you know what you’re investing into before putting your money at risk. If you haven’t done the proper research, how can you expect to make a good investment? This is especially important when investing into altcoins that are relatively new and not well known (not on Poloniex or Bittrex for example). Always be cautious of shilling. As always, only invest what you are willing to lose.
Investing in cryptocurrency is exciting, but it’s also risky. There are a lot of cryptocurrencies out there and each one has its own strengths and weaknesses. It’s up to you to do your own research on which cryptocurrency will best suit your needs. Don’t invest money into something you don’t understand. If you aren’t willing to take risks, then don’t invest at all (or just play around with cryptocurrency prices without investing).
However, if you want to try investing in crypto coins (Altcoins), start with small amounts until you learn more about how everything works. As always, only invest what you can afford to lose. If cryptocurrency turns out to be still, be happy because you learned something new!