Right now there are many of you out there who are trying to jump on the crypto train, and this is a very smart way of investing your cash right now. In the long term many financial experts like Robert Testagrossa are keen to tell the world that big crypto coins are here to stay, and given the companies investing in Bitcoin right now, it is hard to argue. With this being said however not all of your crypto investments are going to crush it in the long term, so it is always important to remember these golden rules.
Importance of Selling
One of the most important things to remember here is that your crypto gains really don’t mean a thing until you have hit the sell button. It is of course amazing to open up your crypto wallet and check out just how much money you have made, but that isn’t actually any profit until you sell it. Given how volatile the market is, those gains can very quickly disappear.
If you are a great believer in crypto then the best advice is to buy when you see a great price, and just hold that money in there, or ‘hodl’ as it known in the community. Given the volatility which we have just mentioned, you are going to need what is known as diamond hands if you wish to make money. Ultimately you are going to see some big swings in the price of your portfolio, but if you panic sell as the price drops each time, you will end up making far less money.
The Power of Trash
There is no doubting the fact that some coins on the market are absolute trash, with no real projects behind them, this provides a dangerous place to invest. The best example of this is Dogecoin, a coin which has literally been created off the back of a meme, and which holds almost zero value. There are people who have made money from the coin, but if we watch how its price changes we can see why it is so dangerous. Basically if Elon Musk posts a Tweet about this coin, the price booms, or if a Reddit group decide to buy it up en masse. The reality however is that the coin, given its lack of real value, can dump in a heartbeat, leaving many to lose money.
Know What You Are Buying
The reason why financial experts like Robert have spoken about this being the future of finance, is based on the incredible projects which we are seeing launched. This is why it is critical that before you buy any coins, you understand what the idea is behind it. Buying a coin because it is popular or because someone recommends it, is a poor way to invest. Find the coin, do your research on the project and then invest if you feel confident enough to do so.
This could be a great way to make gains, just be careful with your investments.
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