Crypto Investing - 5 Simple Keys to Success
If you’re new to the crypto space, getting started in crypto investing can seem overwhelming. Fear not… this guide will make getting started easy!
1) Do Your Own Research (DYOR)
You’ll run across this phrase quite a bit. It’s one of the most important concepts to understand. Essentially, it means, don’t trust anyone but your own knowledge when making an investment decision. The more research you’ve done about the coin the better able you are to make an informed decision.
2) Investing in Crypto, like every other investment, carries risk
The crypto market is far more volitile than the stock market. Some people see this and run for the hills whereas others welcome the volitility. As a rule of thumb… never put more into the crypto market than what you’re willing lose. This should be obvious by now but the crypto reddit forums are filled with personal tales of loss. That said, there are plenty of gains to be made and there are plenty of people who are successfully crypto investing, you just need to take your time and research.
3) Train that gag reflex
“Buy low, sell high” is hard to do if you’re not used to seeing the price of your holdings go down.
There’s going to be days where the crypto market takes a dive and your portfolio can see more than a 10% loss. If this occurred in the stock market, the news media would make it seem like Armaggeddon has arrived. To those of us that have been here awhile, it’s just another day.
Keep in mind that just because the price fell, it doesn’t necessarily mean the coin is going to zero. Instead, imagine that crashes are momentary sales where you get to pick up your favorite coins on the cheap. This way, you prevent yourself from selling when the prices are low and violating the “buy low, sell high” principle.
4) Use a portfolio app
As you find yourself picking up all sorts of different coins, you may find that you end up storing them in different software or hardware wallets, apps, and etc. After some time, you’ll want to know how your all your holdings are doing as a whole.
Enter the portfolio. Portfolio apps like Fire Crypto Portfolio are super helpful because they keep track of all your holdings through time empowering you to see how well your investments are doing at a glance. Having access to historical data or charts helps you make better decisions about your crypto holdings.
5) Use Your Crypto
Buying and holding crypto is one strategy but it leaves out the entire purpose of their existence.
A simple way to know if you’ve made a good crypto choice is to actually use it. Some coins claim to be instant, feeless, and secure. Try it out to be sure!
Nothing is ever a sure thing in cryptocurrency but we can definitely take steps to make our lives less stressful when learning about and choosing cryptocurrencies to invest in. Always do your own research and exercise patience before diving in and investing in anything.
At the end of the day, the road to financial freedom is worth the journey.
Live long and prosper.
-David Black, Founder Fire Crypto Portfolio