Many people are getting into the cryptocurrency market daily with half-baked knowledge of how the market works. Some just heard that people are making money in crypto and jump into it without understanding that investing in cryptocurrency is unlike any other assets. Yes, it is relatively new, fresh and even exciting, but the chance of being burned is high if you barge into it without proper guidance or knowledge. Using appropriate trading and investing strategies at the correct time, will inevitably lead to a high return on your investment.
The first thing to keep in mind about the cryptocurrency market is the high volatility Coins can gain or lose 30% of their value within hours or days. Several coins are being pumped daily by whales and later dumped on unsuspecting and naive investors. So, how can you ensure that you do not fall victim to cryptocurrency market volatility?
Research on your own
The risk of losing money in the cryptocurrency market is much higher than in the traditional stock market, therefore, the need to always do your research cannot be overemphasized. Do you know anything about the currencies you are considering to buy? Do you know if the mission of the company issuing the coin aligns with your goals? This is the type of question you should ask yourself before committing your money to them.
FOMO (Fear of Missing Out) is your worst enemy
Surely, you will be tempted but do not fall for it. In the cryptocurrency market, there are lots of hypes going around and most of the time, people are lured into it due to FOMO - only to end up losing money if the currency’s value drops. This is where research comes in handy; do not invest in a currency simply because some people are exaggerating that currency. Be disciplined and never FOMO without adequate knowledge about the project.
Diversify your Portfolio
Do not risk everything on one endeavor. There are thousands of cryptocurrencies on the market, ensure you diversify your portfolio. Even if you want to invest in some risky (with potentially huge returns) investments, there is nothing bad in having some safe bets on the side.
Do not be Greedy
Greediness is the bane of many in the cryptocurrency market, as people do not know when to take profits. Cryptocurrency market swings a lot, it can decrease and increase at any time. If you see a large increase in the value of your currency, you might wait to see if the value will increase further. However, the price will inevitably drop again. Those that have set up a strategy to take profits at regular intervals without letting greediness clouding their judgment will always see steady returns.
Make Stop-loss your friend
This is especially vital to those into day trading. Stop-loss is useful to protect you from being burned in case of a heavy dump of your currency. A stop-loss is when you set a determined price at which to sell a currency if it drops in value.
Are you new to crypto or you do not have the time? Tycoon is here for you.
Many people wish to be making money in the cryptocurrency market but they simply do not have the required time to carry out extensive research. Some people are just joining the market and have no idea how it works. How can these sets of people invest in cryptocurrency without losing their money? This is where Tycoon comes in.
Tycoon is a social trading platform developed by professional traders to make crypto trading easy and accessible for everyone. Tycoon serves a secured interface between professional traders and end-users.
On Tycoon, with just one click, you can connect with other traders and use our unique CopyTrader technology to automatically copy their trades and participate in their portfolio’s performance. Whether you are a newbie, inexperienced trader or you simply do not have the time to make adequate research on your own, Tycoon and our professional traders are here for you.
Join Tycoon, explore an ever-expanding variety of cryptocurrencies, and automatically copy the underlying assets from professional traders in our community. Be a Tycoon!
Visit our official channels to find out more about us:
Website
Telegram community
Linkedin
Github
Twitter
Youtube
Facebook
Instagram
Medium
bitcoinwiki
Bitcointalk
Reddit
