The Eightfold Path to Enlightened Crypto Investing
As a new cryptocurrency investor, kicking off your shoes and taking your first steps along the Path of The Blockchain, you’ve probably found yourself asking the following questions: did the bitcoin bubble really burst, is it too late to get started, and what are the best tips to be successful in this newly emergent investment space?
While you’ve been asking yourself these questions, along with many others, you’ve probably noticed the prolonged bear market cryptocurrencies have been facing the past year, with just last month being the worst month for Bitcoin since 2011. Taking a more historical view, we see this is only the most recent bear market, of which there have been many before. Likewise, for every bear market, there is a bull market; an endless cycle of perpetual balance, akin to the Taoist yin and yang. Thus, despite the recent significant drops, cryptocurrencies are far from being finished, and the path to cryptocurrency investing nirvana stands stronger than ever.
In fact, the securities platform SharesPost reported that 72 percent of cryptocurrency investors are planning to buy more holdings in the next 12 months. You should therefore expect some traffic on your journey and pack your bags accordingly. As with any successful trip, it’s best to be as prepared as possible. In this article, we’ll give you the necessary eight tips to help reach your desired state of cryptocurrency investing enlightenment.
As a new cryptocurrency investor, kicking off your shoes and taking your first steps along the Path of The Blockchain, you’ve probably found yourself asking the following questions: did the bitcoin bubble really burst, is it too late to get started, and what are the best tips to be successful in this newly emergent investment space?
While you’ve been asking yourself these questions, along with many others, you’ve probably noticed the prolonged bear market cryptocurrencies have been facing the past year, with just last month being the worst month for Bitcoin since 2011. Taking a more historical view, we see this is only the most recent bear market, of which there have been many before. Likewise, for every bear market, there is a bull market; an endless cycle of perpetual balance, akin to the Taoist yin and yang. Thus, despite the recent significant drops, cryptocurrencies are far from being finished, and the path to cryptocurrency investing nirvana stands stronger than ever.
In fact, the securities platform SharesPost reported that 72 percent of cryptocurrency investors are planning to buy more holdings in the next 12 months. You should therefore expect some traffic on your journey and pack your bags accordingly. As with any successful trip, it’s best to be as prepared as possible. In this article, we’ll give you the necessary eight tips to help reach your desired state of cryptocurrency investing enlightenment.
1. Ignore the "noise"
Many naysayers in the media and financial sectors may preach that cryptocurrency is simply a fad, over-hyped speculation, or even a pyramid scheme. On the other hand, a growing population increasingly embraces the financial prospects and practical applications of cryptocurrency assets. Both sides have loud voices and like to make a lot of noise.
This noise level is only expected to increase, as Satis Group predicted cryptocurrency trading activity for personal investors will increase by 50% in 2019. To be a successful investor in this space, it is best to just buy and hold what you believe in (see tip 4!) while ignoring all the noise around you.
2. Expect the unexpected
However, significant volatility does exist in cryptocurrency markets which cannot be ignored. Experienced cryptocurrency investors are accustomed to huge price swings that you often don’t find in traditional markets. By mentally preparing for these unfavorable, and occasionally terrifying, investment performances, the intelligent crypto investor will be able to act rationally instead of emotionally in times of unexpected price drops.
3. Avoid a bad trade or investment strategy
A common mistake for beginner cryptocurrency investors is joining what is known as a "pump and dump" group. Certain social media communities or ‘gurus’ may even promise investment tips regarding a particular coin. You should avoid these types of places at all costs; when travelers go down these roads, they don’t often come back.
The problem is that since derivatives trading is a zero-sum game, there is always a winner, but more importantly a loser. Unless a solid trading or investment strategy is in place, heedlessly following such advice is the fast track to losing your money to modern-day snake oil salesmen.
If you’re interested in learning more about strategic trading and algorithmic strategies, check out our series of articles on our Alpha Predator Model.
4. Perform your due diligence
In this modern digital age, there is even wifi on the path to crypto investing enlightenment, hence there is no excuse to make an investment with little to no understanding of the underlying asset. Almost every single coin has easily accessible whitepapers online. And just like having maps in the car, the savvy traveler must be prepared.
Read Full Article Here: Eight Tips Every Cryptocurrency Investor Must Know
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