Many people have asked me this question every time I move out of my house, hey, Brian, How can I make a smart investment in Cryptocurrency. Well, for beginners, let us first understand what Cryptocurrency means.
What is Cryptocurrency?
A cryptocurrency refers to a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
For starters, investing in this kind of business is one of the many options for investing your money today. Additionally, it is on a very rare occasion to skip hearing about something related to Cryptocurrency. However, even still with talk, this doesn’t mean that this kind of business is very safe and therefore you should invest your money here. Additionally, for us as entrepreneurs, we are referred to as risk takers.
Just like any other business, many people have success stories where as other have misery. Therefore move the same talk to cryptocurrency as some people have made it here while others are still struggling to get there. A few days back, a friend of mine told me that he had so much issues in this business.
“It’s a long story. I heard glowing reviews on how cryptocurrencies have turned many into millionaires overnight, so I thought it wise to invest all I had on November 27, 2017. Little did I know I was throwing debt a welcome party? I don’t think I can ever invest my hard-earned cash on cryptocurrencies again.” He said.
Well, we have heard even bad stories before as we woke up to start investing our small monies. But guess what, it has still not discouraged us from starting up with the same business simply because there is a saying that goes “Every dog has its own day”.
NB: If you are planning to make a decision to invest in Cryptocurrency, then you have to be aware of high risk involved in. Therefore just be smart to invest and don’t look like a gambler at the end of the day.
Now that we have clue about cryptocurrency, let’s dig into today’s topic and see how we can make smart investment in it.
- Make a thorough Study before you invest in Cryptocurrency
Of course we are talking business here, I am pretty sure for any businessperson to invest in any business, they have done ground study. Therefore same thing applies here in cryptocurrencies, you ensure that you have carried out a very deep study on the obvious coins.This research will help you to have prior knowledge about the coins you wish to invest in. Additionally, it will help you to understand the utility it contributes to the crypto world. According to recent findings, many have a huge doubt about Cryptocurrency because they incurred huge losses due to a decrease in bitcoin & altcoins in 2017.
- Never Invest in Cryptocurrency based on Hype and Noise
I will be honest to you on this issue, never ever make any investment because of hype and noise from the general public. All I can tell you is that smart investors of Cryptocurrency don’t make decisions basing on hype and noise. This is because it is very risky to do this. Therefore before you dream of investing in Cryptocurrency, then always ensure that you base on calculated risks. Additionally, try asking the right people for better guidance, and stop relying on hype and noise from the crowd.
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- Know your Risk Strength & Invest what you are willing to lose
I understand that taking financial risks really makes some people nervous. Additionally, while some ignore the moment and others go for it. My question to you is simple, where do you belong? Just be sincere with your response here. This is because it will help you decide on what part of the portfolio to invest in.