Secrets to Investing in Cryptocurrency

The crypto market is continuously developing. Aside from trading and investing in crypto, digital assets like NFTs and collectibles are now making investors more attached to the cryptoverse.

If this is your first time investing in crypto, there are things to consider so that you can maximize your investment and gain more profits. Newbies always ask what’s the secret to successful crypto investing. Believe it or not, successful investors had gone through the same struggle as yours when they were still starting.

You’re here because you want to find out how to invest in crypto. Lucky you! We have here the tips on how you can invest without losing your money in an instant.

How to invest in crypto

Step 1: Find the best platform where you are comfortable investing.

There are several investing and trading platforms when you decide to invest in cryptocurrencies. For example, if you are investing in stocks, you would be familiar with eToro and Robinhood. Both of these platforms offer crypto trading and investing. You can sign up and make an account with any of them and start depositing your investment to open a crypto position. Another great example of an exchange platform for crypto is Binance. This platform is a combination of a trading platform and an exchange wallet. So, you wouldn’t need a separate wallet to store your cryptocurrencies. You can do all of them at once on Binance.

Before choosing the platform where you want to invest, make sure you are comfortable with the space. Crypto investing can be a bit technical sometimes. But with the right venue, you can make deposits, withdrawals, and investing a lot easier.

Step 2: Set your investment budget.

Next is setting your investment budget. What is this for? Investing in crypto is risky. That’s the inherent risk you can’t avoid. You wouldn’t want to pour all your money into crypto and rely on it. It’s a risky investment that can make you lose all your money at once.

Setting your budget for your investment will help you manage your finance. As what successful investors always say, invest only what you can afford to lose. Setting aside $100 for your crypto investment is already enough if you are just starting out. You don’t have a lot of money to start investing.

Step 3: Do technical analysis.

Third, do technical analysis. This is where you read the charts to identify where to enter and exist during your trades. When investing in crypto, this is so important. If you can’t do technical analysis, you better choose other alternatives.

It’s important that before you invest in crypto, you learn first how to analyze the technical aspects of crypto. You can read books, watch tutorial videos, and hire a mentor to teach you all your need to know. You have to invest in knowledge if you want to be successful in investing in crypto.

Step 4: Set your “Take Profit” and “Stop Loss” percentage.

The next step is setting your TP and SL percentages. Exchange platforms have this feature already. There’s no need for you to worry about where to set it up. What you need right now is the figure itself. Are you okay with 10% profit and 5% loss? You can adjust the percentages according to your goal. The purpose of this is to secure your profit and avoid losing your money when the market is down. Setting your TP and SL is for your investment protection.

Step 5: Hold for as long as you can.

Investing is about holding for years. This is different from trading, where you open and close your position at the end of the day. Holding means, you believe that the crypto where you invested in is going to increase in value after some years. When you hold, you reap more profits. You don’t have to monitor your investments frequently. But then again, you have to be aware of the market events. An announcement from a company that it won’t be accepting crypto as payment anymore can hit the crypto’s price badly. If you open a position at a high price, you can lose your investment if the correction gets deeper.

Tips for a profitable investment

Now, you might be wondering, what’s the secret? How come some investors are so successful that they become instant millionaires or billionaires?

Discipline

The number one recipe if you want a profitable investment in crypto is discipline. Don’t let your emotions take over. If you are investing for the long term, you have to be firm with your decisions. Don’t take out your investments just because you see a minor crypto crash. Don’t withdraw your investments because you need an emergency fund.

Investment in knowledge

The most important investment you have to make is an investment in knowledge. Knowledge is power. If you have enough knowledge about the crypto market, you can overcome whatever struggle or challenges there are. Buy books. Hire a mentor. Attend seminars or webinars. Learn something new each day. If you can put your money in crypto, you can definitely allocate some of it for your knowledge. Crypto trading and investing are also effective when you have a support group or community. If you can find the right group to share ideas, news, and strategies with, don’t hesitate to be a part of it. No man is an island. You have to take this journey with someone.

Investing with plans

After you have acquired enough knowledge, put what you have learned into a plan. Create an investing plan and adhere to it until you reach your goal. Don’t make necessary changes if they are not needed. Don’t get affected by your emotions. Your plans should lead the way for you.

Conclusion

Investing in crypto is never easy. It’s not a one-time deposit and a one-time big withdrawal. You have to invest in other things, too, such as knowledge, learning materials, and equipment. If you are eager to learn how to invest in crypto, there’s no amount of complexity or difficulty that should stop you.