How to invest correctly in cryptocurrencies

Very good friends of cryto dogs, this day I come to talk to you about what could be the best actions that we can do when investing in cryptocurrencies, since lately there has been a lot of interest in this area, and although there must be many other posts on this topic, from my point of view this should be an issue that is always stressed, especially because of how quickly information is transmitted today and how people interpret it. And thanks to this it goes without saying that we always have that little voice close by that tells us how excellent he has done in “X” business and how much he earned in a few weeks. But those who have already found the wall perfectly know that this is not as easy as it seems. So more than informing, this post is made in order that you can protect your money and avoid misfortunes and scams when we talk about online businesses.

With this in mind, let's cover the first point of this post

1) Thoroughly research the currency you want to invest in

We know very well that before starting any business you should do your respective market research before putting all our money and hopes on it. Market research is important for any field of work and to obtain benefits you must know the usefulness and how volatile it may be becoming. Remember that this item is handled a lot by the psychology of investors, who act as a large mass and speculative positions end up creating large movements. That is why it is not smart to entrust your money to any app or financial advisor, After all, you are solely responsible for the results that are generated by your decisions.

Finally, if you do not know about the field and you are zero as an investor, you can use the Coinbase Earn site to start educating yourself. It is commented on their page that they offer to pay people to learn about cryptocurrencies, and they do it as they complete certain tasks such as watching full videos or taking a quiz. To do this, you will probably have to be in a United States IP, since they are a brokerage house regulated by the United States Securities and Exchange Commission.

2) Don't invest because of the trend

What can we say, financial markets work like this. When a market has attractive characteristics or potential for appreciation, all investors flock to it. In short, what goes up must come down and what goes down afterwards must go up. Everything is a cycle of ups and downs. Long and short. Financial markets are almost always driven by expectations rather than facts. All this causes that the cryto market can have a high volatility and that the assets are considered high risk and unsuitable for retail investment. Although this characteristic would be ideal for an operation focused on trading.We just have to know how and with what to choose investment instruments that allow us to carry out an active management to avoid the risks of fluctuations in the market, in other words. become an ally rather than a risk. But be careful of this double edged sword.

3) Buy in cash

This form of investment is equivalent to the purchase of shares or any other cash asset. It is bought and is expected to revalue. This is called "buy and hold". The Buy and Hold (B&H) is a long-term investment strategy in the stock market based on buying shares of stable companies that distribute dividends and holding them indefinitely, this implies that financial markets offer a good rate of return even taking into account a certain degree of volatility. Some take the buy-and-hold strategy to the extreme, arguing that a security should never be sold unless the money is needed.

And well that's all for now, I hope you found my post today informative, and soon I will be uploading more things so that novices on the subject can know what to expect when embarking on this world of cryptocurrencies .

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