Did you know that 16% of Americans have traded, used, or invested in cryptocurrency in 2021? It’s fascinating to think that cryptocurrency which didn’t exist just ten years ago, is now going mainstream.
If you are new to crypto trading and are looking for some solid crypto strategies, then you are in the right place. With the realization that any kind of trading can be risky and should be approached with care, read on for some tips on how to invest in crypto.
Do Dollar Cost Averaging
Dollar cost averaging is a trading strategy that works for stocks, and it works very well for cryptocurrency as well. You can even set up automated trades that buys chosen crypto coins for you when they go down by 5 or 10%, thus, allowing you to reduce your overall purchase price over time.
Don’t Invest Money You Can’t Afford to Lose
If you are going to be retiring soon or you will need funds to pay for your child’s school fees or college tuition imminently, then it’s better to keep this money aside in safer investments like bonds or in a savings account. Do not invest money into crypto coins that you cannot afford to lose.
Do Expect Extreme Volatility
Cryptocurrency goes through massive swings, sometimes in a matter of hours. If you are the kind of person who can’t handle such volatility, it’s better to stay out of the crypto trading market. Expect that these swings will happen and that there’s no need to panic and sell off your investments.
Don’t Trust Scammers Online Who Promise to Teach You to Trade
There are many people online and offline who will teach you how to invest in crypto for a small or big fee. A lot of these people are taking advantage of the crypto bull market and don’t actually know any real crypto strategies. It’s better to stay small, do your research at an trusted crypto exchange, and learn through experience.
Do Go In It for the Long Term
Crypto trading, just like stock trading, is all about staying in it for the long haul. Do not waste your time day trading or swing trading, unless you are absolutely sure of your skills. It’s better to purchase good quality coins and hold them for the long term, despite the swings.
Crypto Strategies Are Nothing without Patience
No matter if you are a old hand at investing or you are just starting out, the first skill you need to learn is patience. Don’t jump in or out of trades without first taking a deep breath, thinking through your primary crypto strategies, and then making any necessary changes in your portfolio.
It’s far too easy to watch others who are ‘killing’ it in the market and to want to follow their cryptocurrency secrets. But remember you don’t know the full picture.
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