We are taking advantage of the moment that we are traveling from Rio de Janeiro to Bogotá to share this important matter mercadobitcoin related to the most important tips that we must have in time to start an investment within the cryptocurrency market and that we have translated exclusively for the whole community.
These tips are part of our exclusive crypto dummies series that we have been doing since a few weeks ago. Just for remembering, and before continuing, in the last lesson we learned everything related to the management of the active crypto within the portfolios and which are most recommended.
Today we bring you what makes our dreams come true. As well? The answer is simple. To fulfill our dreams within this market that only occupies 1% of the total capital of the other financial markets, we must keep these tips in mind, which we will discuss next. Among them planning, risk generation, diversification and other variables play an important role when making investments.
Throughout the time we have been accompanying this market we have understood that it is not only about buying and selling. It is also important the following things that thanks to the article we can explain very well. Then let’s start.
Diversify To Beat
One of the most common beginners’ mistakes is trying to predict the next Apple, or guess when the next bitcoin explosion will be. The truth is that even for professionals it is very difficult to predict these moments.
That is why Ray Dalio, manager of one of the largest funds in the world, and holder of a fortune of US $19 billion, said that “diversifying is the most important thing that you must learn to invest well”.
Warren Buffett, the legendary “Oracle of Omaha”, also shares this view, which recommends that less experienced investors leave their money following the market, without trying to choose stocks.
Crypto assets have immense potential for return, it is true — only in October 2019 the gains were 5.2%. However, they are more risky than most other equity assets.
For this reason, they should be part of any investor’s portfolio, but never in a totally concentrated manner. To know how much to allocate to risky assets, it is necessary to add several factors, such as risk appetite, and investment term.
Study The Market To Not Fail
It is the most important fact that we personally do more and that differentiates us a lot from the rest of the pack. The study of the market must be part of the life of any investor.
The crypto world has its own language, and understanding some concepts is essential to interpreting the news. Do you know what a hard fork is? Do you know what a FUD-dominated market means? In any case, we have prepared a crypto dictionary for you to understand the main terms.
There is also the issue that crypto trading has taken over many terms from the financial market. The investor also needs to know terms such as “order book” and “executed and executing order”. This is necessary to understand how to manage your trades and design inputs and outputs.
Follow The Market
The third element of the study is market monitoring. It may seem like a repeat of the previous item, but they are not the same. Studying the market is learning more “permanent”, more fundamental terms and techniques.
Following the market is to feel the “pulse” of the people who are interacting in this buying and selling environment. It is a study that must be done continuously, even by professionals, because the environment is always changing.
Contrary to what many people think, there is no need to dedicate hours and hours a day to this. To understand the climate of the economy in general, a few minutes reading the newspaper’s corporate session is enough.
Remember that we have a public telegram channel to deliver the best market advances and trading signals with high quality and good profits for the main exchanges.
Control Your Emotional
Once you have implemented the habit of following the market, it is easy to get carried away by the strong emotions it provides. When crypto assets — or the stock market — are rising, everyone is excited, and waiting for the next high.
It is at this point that it seems that positive news is everywhere at the same time. Euphoria can lead us to do business that, in the future, may seem meaningless. The same goes for casualties. When everyone is pessimistic, we may be driven to sell our assets at a loss, only to see them recover the price level a few months later.
However, be careful. This is not to say that you should never sell your assets, or ever enter the market. The psychological control serves to know your limit of losses and gains as well.
Got into an operation, earned 10% and are you comfortable with that? Perform. It doesn’t matter if the price later tripled, since you didn’t have that information in the past. Likewise, if a 5% loss starts to bother you, do it.
Do not wait for it to improve, because even if it can rise, it can fall even more. However, if the situation, whatever it may be, does not bother you, and you know the risks you are taking, continue with your operation.
Choose A Strategy
One article says that day trade is the best way to win in the market. Another says the secret is to hold assets for years. One says it is better to buy some every month, regardless of the price level. Another says it is best to save capital and buy everything at once, when the market looks favorable. Who to believe?
The most important thing is to get to know yourself and know what is suitable for your profile. Some people manage to make money with day trade, but it is definitely not a modality for everyone.
A more restless person may not feel comfortable holding their shares for years and checking the price every 3 months. To know your profile, you need to test it, it’s true. However, once you find out what is best suited to your profile, stick with the strategy.
Each of the possible strategies has advantages and disadvantages, but changing between one and the other without criteria is a certainty of capital loss.
The Reason For Everything
Above all, the investor must do his homework. This does not mean that you should not listen to influencers, or investment tips.
The point is the need to study and critically see all the recommendations and information that go through your desk — yes, that includes the ones we spent here on the Bitcoin Market. Once you study the market, and follow the conditions, you will have a baggage to evaluate good moments of opportunity.
These opportunities will be dictated by the investment system you choose, as each has a need. So this item is the last one on the list. Once all the others are applied, you will be much better able to select your own opportunities, according to what you decide for yourself.
To complement all the above information, we want to highlight that in Rubika Ventures we fully watch to follow each of these tips and thus offer a high quality service for everyone.
We also want to remind you that our latest results are based on a trading strategy that has been tested for a long time. A strategy that is ready and which you can get a lot of profit to maximize your earnings.
On the other hand, we want to continue giving you the best market studies and the best information so you don’t miss any movement of this chess game that together we are learning to play.
See you in the next lesson! With love 💛 Rubika Ventures Team!
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Remember, investment in cryptocurrencies or other assets has a moderate risk, so it is important to have a detailed study of the possible scenarios before placing your money at risk.