Cryptocurrency is fast becoming one of the best investment opportunities in the world and why not? The market is flexible, and you stand the chance to gain returns on your investment faster than with another investment venture. In fact, the market is so great that there are people whose sole purpose is to leverage the market every single day.
The first and biggest cryptocurrency is Bitcoin. It has been in existence since 2009 and has gone through exponential growth from a couple of cents to about $50,000 and it’s still growing.
There are other types of cryptocurrency and they are called altcoins. Many of them are in their early days and have the potential to grow really well in years to come.
Cryptocurrency is a great thing to invest in, but because of the volatility of the market, you may find yourself in a bad situation really fast if you don’t know what you’re doing. That’s why we have taken time to ask seasoned investor, Jacques Poujade about tips for getting into cryptocurrency.
We know you’ve probably heard about cryptocurrency investment and how it’s capable of making people rich in a short time. That’s true. Cryptocurrency can do that. It can also make you poor in a short time if the market dips.
The best way to approach cryptocurrency is to start small. You want to make sure that the money you’re investing is something you won’t miss too much.
Remember that trading in cryptocurrency is very risky. Instead, try to invest with small stakes.
Pick a Secure Wallet
If you want to pick a bank for your money, you wouldn’t want to pick a bank that’s known for being robbed, would you? That’s the idea behind picking a secure wallet.
Wallets are like banks for cryptocurrency. They are the places where you store your coins until their market value has gone up. If you lose your wallet log in details or you get hacked, you stand to lose a lot of money. So, always ensure that you choose a secure wallet for yourself.
There are several types of wallets. The best ones for beginners are those that come with brokers like Binance. Your wallet can also be a hot wallet or a cold wallet. Hot wallets are connected to the internet at all times and may be easy to take over by hackers while cold wallets are not. They are considered the safest.
Get to Know the Market
The fastest way to make money through cryptocurrency is to first educate yourself about the market. This process is not very straightforward as the rules that apply to other financial markets may not apply to crypto at all. Global news is important but not always effective.
One way you can educate yourself about the crypto market is to learn how to do technical analysis. This means that you should learn how to recognize the patterns in the market chart and figure out when those patterns are going to repeat themselves.
Pick a Trading Strategy
Before you pick a position, you should first ask yourself what sort of strategy you plan to use. It’ll determine whether you pick a trade on a one hour, one day or one-week chart.
Enjoyed this article? Great! If you’re looking for more investing tips, check out Jacques Poujade’s blog at jacquespoujade.wordpress.com.
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