Hey, readers if you are new to crypto or you are planning to invest in crypto. Today we will talk about the 5 most important things that you should consider while investing in crypto.
As we all know that crypto is the most volatile and unstable investment option for an investor. Using these tips you can manage your crypto portfolio like a pro.
Cryptocurrency is a blockchain-based encrypted digital coin that can be bought or sold through the internet. Then how it is an investment; we can say a cryptocurrency is an investment option. If we buy a crypto coin and the demand increases then the price will also increase. We can also go into loss if the coin failed to perform as it is not an investment in a physical asset. It is just a digital asset that doesn’t have value just has a trend of demand in the market.
If an investor has the perfect knowledge of crypto can make him/her a billionaire in a very short period as it is the most volatile investment option in the market.
So it is very important to know about crypto before investing. It us discuss 5 things/tips that you should consider before investing.
Conduct your research.
Before investing in crypto you must do a good amount of research so that you don’t face any losses. In crypto, you must see which coin you have to invest in so that it can give you a good return.
As the crypto market is the most hipped market and very much volatile and with insufficient research, if you invest then you lose all your investment.
For example, if you know about the luna coin then from today if you have invested 10 lakh rupees that its value would be today only 10 rupees, and if you have invested 10 rupees in dogecoin 1 year ago then you had earned a huge return 6 months ago but now you will be in loss as its value is only 6 rupees at present.
This is how crypto work it can be very much profitable as well as it can be a huge loss, so without proper research it would be like gambling.
Verify before investing
Don,t act before verifying. You should not invest without verifying the means don,t invest by listening to someone’s tips or by market trends. If you just invest without verifying then it will be gambling as the main motive of the investment is to buy and hold for a long time so that you can earn profit from it.
If you get a tip from any close one that invests in bitcoin you should not just invest because you got a tip that this o that crypto will grow and give you a huge return then it will be foolishness as you have to see why you want to invest in crypto and which coin fulfills your requirements.
Check your capacity before investing
Before investing you have to know your capacity and how much you can invest out of your income or what is your budget so that you can take the risk. We have heard that people have become broke, and homeless because they invested in crypto.
Why they became so; is because they can invest 1000 rupees but they invest 2000 rupees as their income is only 2000 rupees even some people take a loan and invest in the hope that they will get a high return out of it. It is not the way to invest if you became greedy and ignore your capacity then you will suffer loss.
So if you want to invest and don’t want to suffer loss then you should invest a certain amount that is within your capacity means if you have a regular income then you should invest only 10% out of it in crypto so that if the investment suffers loss and became zero then it should not affect your living and you don’t suffer any kind of financial problem.
Don’t invest in Fomo
Don’t invest in FOMO. What is FOMO? FOMO means fear of missing out means the fear to miss an opportunity or fear of leaving behind. If an investor thinks that he or she will miss the opportunity to earn a good return by investing in crypto and make a quick decision and invest a huge amount in it then eventually it has a high chance of loss.
You should not just invest you have to first go through the three points that are discussed earlier, first of all, you have to make good research then verify it, and then look at your capacity and then invest. Don’t fall into the trap of Fomo it will harm you.
For example, if a crypto coin is rocketing at an enormous speed and the price is increasing every second the majority of people invest it in without thinking about the cause.
This cause is that with the demand the price is increasing not because it has any value, it is like gambling if someone invests at the beginning and withdraws the money at a correct moment when the coin is at its peak price than that person will earn but simultaneously it will be a loss for the other as that person withdraws the money than the value will decrease and a chain will be created and eventually the early one will gain and the late one will get a big zero, it is a game of win or lose.
Pick a trustable and relatable crypto exchange
If you are ready to invest in crypto then invest your money through a trusted exchange. We all know many scams are conducted through crypto and if you get scammed then there is no chance to get your money back as it is a decentralized system.
The internet and don’t have any authority to control. So to prevent such fraud you should invest through a trusted exchange platform. Like Coin DCX, CoinSwitch Kuber, Binamo, Wazirx, etc which are trusted and well-reputed exchanges through which you can invest.
I suggest you should invest through Coinswitch Kuber which is very user-friendly and very easy to use. I use it and I am quite happy with it, and if you want to invest and wanted to open a Demat account you can use the Coin switch Kuber app that is available in the play store through which you can open a Demat account very easily start investing.
Conclusion
So at this point, I think you all have learned a lot about the risk. Some tips to invest in crypto investment. It is a very important thing that a human can’t ignore similarly we can’t ignore crypto. As it possesses the potential to replace the present monetary system but at present. It is in its early stage as the internet in the 90s. If we invest a little amount in it with a good plan
Thank you guys if you want to know more or learn more do visit our youtube channel, Chetan Agarwal. You will find a bunch of good videos and they will be knowledgeable for you.
