Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto

Tips to start investing in cryptocurrencies

By espacioreal | elespacioreal | 24 Jan 2021

We must know that cryptocurrencies are an extremely volatile and dangerous asset, especially for the investor who is taking his first steps.

It is necessary to define our investor profile to contemplate our aversion to risk.

Whoever invests in this instrument must be clear that sooner or later they will have to face large fluctuations. We must believe in the ecosystem and be patient. A succession of reckless decisions can cause the total loss of our investment.

Once the above information is understood and assimilated, we proceed to define the investment amount and the term. The money destined for cryptocurrencies should not be essential in our daily lives. We must always have savings to meet expenses for 6 months in case of losing our income. This is very important because if we invest money that we are going to require in the short term, we will have to undersell our investment, in inopportune market conditions.

For those just starting out, I always recommend investing long term and ignoring market fluctuations. Investing regularly (a fixed sum per month) will allow us to average the purchase price.

Initially, I recommend buying BTC and ETH long-term and investing regularly. In this way, we average a better purchase price. There are even some exchanges, which allow you to make passive investment. For example, you can automate putting 10 usd per day in the currency you choose.

It is VITAL to learn to control our emotions and not let the market manipulate us. This is the hardest part.

Our job is to buy the "dips", the fixes. These are instances of a “bull market”, a strong bullish momentum in which the price falls slightly. At this time, the less experienced are likely to sell rather than buy as they are afraid that the asset will continue to decline.

"The main trend is always contrary to market sentiment." This means that the majority are always wrong. For example, if the majority believe that it will continue to decline, the trend will probably reverse and generate a strong bullish movement.

Don't be swayed by negative articles regarding cryptocurrencies, it is better for us that Warren and other figures are against it, because the main trend is always contrary to market sentiment; worry the day Warren becomes a bitcoiner.

You must deal with anxiety, which leads to buying at highs, and fear, the "FOMO" (Fear of missing out), which pushes to sell at minimum values ​​for fear that the price of the asset in question will continue to fall and it also leads to buying at highs.

However, you must always be a little afraid: You will be afraid, always afraid, very afraid in the market. The day you are not afraid, you will melt.

For most investors, trying to time the market is not a good idea. It is best to invest regularly. I am a faithful defender of "BUY & HOLD", stretching the term as much as possible). Nor is it advisable to short as a beginner.

Regarding leverage, I do not suggest doing it without first accumulating experience, and doing it in short sections, with well-defined entry and exit levels.

How do you rate this article?



A veces leo.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.