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My Knowledge About Cryptocurrency

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Nowadays, everyone has some belief about the concept of cryptocurrency. Even 4-5 years ago, I had no idea about cryptocurrency. I am also quite new to the world of cryptocurrency and I have little idea about this rising World. Cryptocurrency is a symbolic type of digital currency that can only be transferred by Internet users and it is not a physical currency. This coin is not printed by any bank or government of any country. This currency can be called People's Currency. We can exchange our native currency digitally through mobile banking or online banking. However, there is a service charge for exchanging currency, there is third party interference in online transactions and a lot of personal information of the user is published. But with the origin of cryptocurrency and the secure crypto world getting popular for hiding the personal information of the transactions, it became widespread among the people and gradually people started using cryptocurrency alongside ordinary currency keeping their identities secret. Bitcoin and Ethereum are considered to be the most popular and safest currencies in the cryptocurrency world.

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Strategy that we should follow while Investing in cryptocurrency

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Cryptocurrency trading or investing is very risky and there are some strategies that you should follow while investing in crypto. Just as there is a lot of profit in cryptocurrency, a big loss is also probable. I am a new trader, I will try to share with you the basic strategies that I follow.

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Understand what you’re investing in

As an investor or trader in cryptocurrency, you have to make research on your favourite crypto, where you are investing on. You can invest in any cryptocurrency but you have to find the safest and most popular currency. You can choose the top 100 cryptos for investing. Before investing you have to make some small research about the coin, like what is the use-case of that particular crypto, what kind of project they are developing and the team of the project. After executing this small research and understanding the project you can invest and take a risk.

Don't invest in a particular crypto

New investors always make this mistake. I also made this mistake before. Recently 100% downfall of Terra Luna was a great indication that we should not invest our money in a particular cryptocurrency. So you have to diversify your investment and you have to invest little in your every favourite coin so that if one project fails, another project can recover that loss for you.

Buy the dip

Always try to buy an asset after the price drops down 70-80 per cent from its all-time high price. This kind of scenario is common in the crypto market and it happens when a piece of terrible news manipulates the crypto market. At that moment It seems like the crypto market is over but it is not. It's a perfect time to enter the market. It's the perfect time to accumulate your favourite crypto, then you have to hold your asset for the next bull run.

DCA-Dollar Cost Average

It's a productive plan that you can execute while investing in crypto. Suppose you want to buy 1000 steem. You do have not to buy 1000 steem in a moment. You can fix your money and you can buy a small amount of steem monthly. In this case, you have to also observe the current situation of the market and you have to buy steem any of the days while the whole market is in the red zone and you are getting steem at a cheap cost. This is a simple plan that you could follow while investing. You can multiple your assets from this kind of investment.

Don’t invest more than you can afford to lose

This is an important topic. Don't invest a huge amount of money that can make your daily life complicated. Because we all need money in our daily life and if I invest an amount of money that may affect my daily life it will overcome like gambling in my life. You have to invest just a decent amount of money that you can afford to lose. Because you can get a good profit or make a hell of a lot of money but you can also overlook a big loss here. So invest that what you can afford to sacrifice.