Investing in cryptocurrency is much more complicated than most people think. First of all, you should know that you are investing in a currency, and that can be volatile. Because this is a budding market, it’s recommended that you maintain discipline and follow a defined strategy. There are some simple tips for getting started in cryptocurrency investment. Here are a few simple tips to help you.
Invest only what you can afford to lose, this is the very first rule. For example, if your income is $50,000 per year, it’s a safe bet that a potential loss of $500 does not impact your life much. You would not want to ruin yourself when investing money. We recommend investing small amounts at the beginning to familiarize yourself with this particular trading universe. When you have more experience, you can increase the amount and take more daring, while taking calculated risks.
However, if you are an amateur, it’s recommended that you let a professional handle your investments. Snowball is a revolutionary solution for making safe investments in cryptocurrency. Basically, Snowball is like an index fund for cryptocurrency investments. Just like mutual funds, the app will require you to connect it to your bank account. Once the app has been connected, all you have to do is to decide your risk exposure and the amount that you want to invest. The app makes use of advanced metrics and market analytics in order to determine the investments that need to be made. It creates what you would call a snowball effect, slowly growing your investments.
Short-Term Vision is a No-No
The short-term vision is to be avoided. Never give in to panic and emotion. Look at the long-term trends for each crypto that interests you. Speaking of interest, the essential questions to ask before buying are always the same:
– Who are the people behind the project? Are they credible (are they highlighted in the media, they have a LinkedIn profile provided, etc.)?
– Do they have partnerships with big companies? Is their system applicable in a large-scale area?
– See the white paper or the primary document (it should be easily accessible). What is the philosophy of the team? What are their projects in the short, medium and long term?
– What is the upcoming legislation on digital currencies? The taxation? What will be the impact of the decision of governments?
You have to consider a variety of different factors before putting your money into any cryptocurrency. At the end of the day, it’s all about making an informed decision. If somebody tells you to invest in a particular currency and you do so without doing any research, it’s your problem. With apps like Snowball now making crypto-investments easy, it’s become a lot easier for people to put their money in crypto and diversify their investments. It works using a powerful real-time learning engine and also limits your exposure drastically by making careful decisions.