Cryptocurrency for most internet users may still look like money in an imaginary world. It is unreal and you can only enjoy it as long as you work in digital business. Then what about the real life outside the internet that we live? Are cryptocurrencies like Bitcoin and Ethereum able to support our daily lives or provide the luxuries we have always wanted?
It depends on you. Everyone is competing today in creating a profit tree from investing in crypto digital assets. Many beginners try to gain as much knowledge as possible from their predecessors. They are even willing to pay for classes or engage in financial applications that specifically discuss this profitable long-term investment. They want to be successful in the investments they take to maintain wealth or to bounce back after past economic downturns.
Those who once succeeded in investing in cryptocurrencies and then went bankrupt due to miscalculations are also returning to enliven the crypto market. You can start now without the slightest doubt because you understand what cryptocurrency is, how to start investing in it, and how to trade it to make a profit.
Here you will act as a buyer or investor as well as a cryptocurrency trader. Therefore, prepare yourself and your mentality like an entrepreneur who sells digital assets that can provide real profits.
Recognize Market Fundamentals
Anyone will never be successful in making financial investments if they do not recognize market fundamentals. When you buy a financial product such as shares, at that time you already know very well the ins and outs of the market, how dynamically the market moves, and how to respond to drastic declines in shares due to news circulating on the stock market. This also happens in the cryptocurrency market.
We know that the price of this currency is always fluctuating. At some point, you as an investor will find a cryptocurrency that has fallen so drastically. However, this should not discourage you. In general, the price of cryptocurrencies can decrease drastically due to the actions of hoaxers who create solid yet baseless rumors. Shrewd investors will see this as an opportunity.
Learning from their predecessors who understand market fundamentals, they will immediately move quickly to buy at a low price. Then they will resell at a high price according to the basic economic principles that we know so far. However, you need ‘sense’ here not to become FOMO (Fear of Missing Out) by quickly buying because you see seniors doing it successfully.
You can hone that sense by understanding your risks.
Understand the Risks While Forgetting the Heartache
As a beginner cryptocurrency investor, you may not fully understand the risks ahead. You just go with the flow while hoping that trading in crypto digital assets can run smoothly. However, one thing you need to remember when starting to invest in cryptocurrency is good risk management.
This is a volatile digital asset and you need to consider all possible risks. The risks that arise for you will certainly not be the same as those that people face. You need to look at both sides, whether this is a short-term or long-term investment. Beginner traders should see cryptocurrency trading as an experimental business that you are serious about.
Therefore, you don’t need to be careless in investing all your money in cryptocurrency. Use only two to three parts of the money for the initial investment. When in the middle of trading there appears to be a movement that is contrary to your expectations then you still have spare money for further investment capital. Cryptocurrency trading will continue as long as you bring the right knowledge and apply actions according to your inner sense.
You must always have money that you cannot use other than for this crypto investment. Determine your investment amount for this crypto product at the beginning. Then set aside some money as a cash reserve fund so that you can always participate in the circulation of the cryptocurrency trading market.
There is no need to get upset and feel emotional for a long time if you encounter a decrease in profits. You just need to stick with what you have prepared from the start.
Cryptocurrency investors who choose short-term trading should apply strict rules where they must quickly decide to sell even if crypto falls by only 7 to 10 percent. This is to avoid big losses in the next trade. Meanwhile, the management method for long-term investors can be more lenient because they can still survive whatever market decline occurs.
The Closest Way to Invest Cryptocurrency
Beginners in investing in cryptocurrency are too familiar with blockchain, Bitcoin, Ethereum, and other kind of cryptocurrencies. They already know all the terms and possibilities that occur on crypto exchanges. They just need to jump right in and start a thrilling adventure in the crypto jungle.
The closest choice you can get is Bitcoin or Ethereum. There are various ways to start investing in Bitcoin. You can collaborate directly with several organizations as below.
Financial Applications
You can easily find many financial applications on the internet. This application helps you to trade Bitcoin and various other cryptocurrencies. For payment applications, you will usually use PayPal, Cash App, and Venmo.
Cryptocurrency Exchange
This is an exchange where there are many choices of cryptocurrencies and you can pick one according to your conditions and understanding. Prices on this crypto exchange are competitive.
Traditional Brokers
Traditional brokers that typically trade stocks and other financial products can also help you trade Bitcoin. There are also other cryptocurrency options but they are very few.
So, you can choose one product of cryptocurrency that is easy for you and you know how to do it. Make sure you discuss everything with a trusted organization or professional predecessors. Don’t forget to make note of everything and to hone your senses when you are around the cryptocurrency exchange.
Last but not least every step you make doesn’t always lead to success. But this is what will make you someone.