Cryptocurrency tips for you as a beginner or starter of trading or investing in digital currency, so-called cryptocurrencies. These are decentralized, super fast, and extremely low in transaction costs. For the Loops trading, you will have the followings.
Do good research into the cryptocurrency in which you want to invest or trade. Who are the founders, do they have much or little experience, Social Media accounts active, website up to date, and what is the purpose of the company? To find out what the intention of the company is, it is advisable to always download and read the white paper. The business plan must be explained in such a way that you can retell it without thinking to family, friends, neighbors, or colleagues. Example Bitcoin white paper.
A frequently made beginner’s mistake with cryptocurrency investors is not spreading his or her assets. It is also important that you invest money that you can miss. If you have made the decision to do it, it is wise to purchase different types of cryptocurrencies and not just one.
The example above is, of course, fictional but has been thinking about. Bitcoin, Ether, Ripple, and Litecoin are relatively safe and stable investments. Viacoin is a little more unknown and therefore carries more risk, hence ‘only’ 20%.
Half of your money will eventually be burned or no longer exist according to an article from a well-known newspaper. You invest in start-ups, and that always entails risk.
Many starting crypto investors (including myself in the beginning) have a fear of missing the boat with a lot of gold. It was indicated on various Social Media channels that you are now buying. Otherwise, you are late! What wants to give you with this do not be influenced and do good research yourself and fully support it. Also, be aware of the major risks that digital currencies entail. Buy crypto coins you believe in and don’t look at them for a few years.
Spread, but not too much!
Spreading your chances is always good. This is the case when, for example, you go to the casino or bet on sports games. When investing in cryptocurrency, that is exactly the same. That’s not so strange either. When you bet all your money on one coin, you simply run a much greater risk than when you spread it across various coins. Yet with spreading it is not that you cannot spread much enough because you can also go all the way. It is not wise to spread your money over twenty or thirty different coins. After all, you will soon end up with coins that you know less well and whose risk is also much less predictable. The smartest thing is to spread but on known coins. Spread the money you want to bet over some well-known crypto coins that have already proven themselves and in which you have confidence!
Tip: take less risk by following an investment course or start reading books about investing. You will notice that you will achieve more returns and prevent disappointments.