Crypto World #5 A few dents to consider when investing in cryptocurrencies.

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The turn of the decade brought about a new goldmine named cryptocurrency, many have become overnight millionaires investing in this line. Cryptocurrencies, unlike the fiat currencies, derive its value from the perception of its users, which implies that it doesn't have any intrinsic value.

A lot of people who have succeeded in this type of investment will tell you that the road to success in the crypto world is riddled with several thorns and thistles, and this is why the vast caution must be exercised as far as staking your money is concerned. This article will show you a few proven strategies that should help you avoid the several pitfalls that exist in this line of investment.

Don’t be covetous:

One universal rule as far as investing in any enterprise is that you only invest in what you can afford to part with. One notable feature of the cryptocurrency market is the fact it can be quite profitable and as well volatile at the same time.

Many attest to the fact that you can quickly make great gains overnight and make huge losses within the same time frame as is witnessed in the recent plunge in the price of Bitcoins and some other Altcoins in the crypto world. Therefore, instead of you investing trading in this line, it safer for you to tow the line of putting in a little to test the waters, you can start with a maximum of ten percent.

By taking this route, you can build up your portfolio to make more significant risks of the higher portion. If you are a beginner & it is expected that you take risks that are not too much and should be able to help build you up to a certain level of professionalism

Never put all your eggs in one basket:

It may not be wise of you to invest all your funds in one single coin; this is because by so doing, you will be exposing yourself to the risk of making bad losses. Cryptocurrencies have the reputation of being quite unstable with some of them going through the pump and dump phase.

This puts you in a position where you either make lose and gains, some people make the error of purchasing coins at a point when the coin must have reached the point where it is at its highest price and only begins to decline when you buy.

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All coins are quite different

It is very vital that you have a full understanding of what role Bitcoin has to play in the Global crypto-currency market Bitcoin is the father of them the one that founded it all, and it also holds the record of being the most widely known of the lot.

It is the benchmark for measuring the value of other cryptocurrencies. This means merely that Bitcoin should be viewed as fundamentally a long-term investment instead of seeking to buy it at a dip price and sell at a high rate. It is therefore advisable that you treat Bitcoin differently from other coins.

In summary, Investing in crypto-currencies can indeed be a profitable venture, but it can prove to be a slightly risky venture if it is not done with the proper level of information.

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Interested in my previous blogs:

• Proven tip to help you find the next big crypto-currency.
• Crypto Talk #3 Is Bitcoin regime coming to an end?
• What is Blockchain? A beginner’s guide to Blockchain Technology.
• Crypto Talk #2 Is India going to Ban the Cryptocurrency Trading?
• Active wear trends of 2018.

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