Cryptocurrencies have a number of different categories of investors. On the one hand you have experts like, who have been investing since the beginnings and who have wallets which are bustling with coins. On the other hand you have low level investors who know a little about this tech or who simply don’t want to miss out on the chance to get involved in this exciting new market.
No matter what kind of investor you are however, when it comes to getting involved in this there are some things which you have to know first, in order to make a good fist of your investment.
Researching The Coins
There are hundreds of alt coins, cryptocurrency which have relatively small market caps. These can provide you with a great chance to make some big gains on your investment, because of the fact that they can sharply rise by hundreds of percent at a time. It is critical however that you research each and every one of the coins which you are going to invest in, and that you do this before you part with any of your money. So many people will spot a project and think it is great, when quite clearly they are pyramid schemes. There is opportunity out there, just be sure that you have a clear understanding of what you are investing in.
Strapping In For The Ride
One of the reasons why so many will not invest their money into crypto is the fact that they do not like the volatility of the market. There is no doubt about the fact that this is the most volatile market that you will find and if you are going to invest you had better strap yourself in for the ride. Depending on how much you are sitting on, you could see your investment swing by as much as 20% in a single day. In fact if we look at what Bitcoin has done in these last 7 days alone, moving by a huge 22%, you can see exactly how volatile this market can really be.
There Are Frauds
Twitter is a great place to get crypto tips, but this ca also be manipulated by those who have bad intentions. What basically can happen is that someone creates a coin which is trash, they make a fancy website with all kinds of marketing on it about their ‘project’. These people then invest in Twitter bots which will talk up so that more and more people start to buy the coin. When this happens the price gets higher and higher, but then the inventor of the coin dumps everything they have, the price falls and everyone loses money whilst they make a nice little bit of profit. This is exactly why you must be careful, because these situations can and do exist.
Be careful, be smart and always make sure that you know exactly what you are investing in before you send any of your money to any crypto wallet.