There is lots of buzz about Cryptocurrency in the financial market. Investors are attracted to the crypto market because of the higher profits it promises to deliver. Cryptocurrency is the decentralized virtual currency that is used for the online transaction. The Crypto market is new, and many people consider it a risky market to invest in. In case you are planning to invest in the Cryptocurrency, here are the top ten things that you must know before investing your money in the crypto market. Ensure to check the Cryptocurrency Charts Live before investing.
Never Start Big
The investors’ biggest mistake in the crypto market is that they often invest big money initially. Until you are not confirmed how much a coin should be worth, you must never start with a big investment. You must always check the Cryptocurrencies Charts Live to know the present worth of a coin.
Cut Your Loses Quickly
You are not required to hold longer on the loss-making position. If you see that the coin is not performing as expected, sell it down. You must not develop an emotional feeling to any coin, or you may end up making losses.
Don’t Be Greedy with Gains
In the crypto market, you are not required to ride a coin all the way long. 30-40 percent of the profit may turn into a negative position in seconds. The loss position would last for up to three months. The objective must be to make significant returns on the starting capital.
Stick to What Works for You
Some of the traders play with 20-30 coins a day, while others prefer to play with only 3-4 coins a day. But, you must not follow the trend that is suitable for your friend. You must stick to what suits you and work best for you. A small profit of 5% a day would offer a 150% return in a month.
Convert Profits to Fiat
It is a smart move to brag the highest number of coins in a day, but it will come to naught if there is no physical cash. The profits you made may evaporate in the night, and hence you must convert the profit into fiat or regular currency.
Don’t Use Only One Exchange.
You must not put all the eggs into one basket. So, you must not use only one exchange for trading in the crypto market. Some exchanges often go on break or maintenance when the coin is experiencing a rapid growth or price appreciation. It is done to prevent market manipulation. So, you must never rely on one single exchange.
No Breaks in Crypto Market
Remember, there is no break in the crypto market. There is no shutting down of the crypto market like stock exchanges. You can carry on trading anytime and from anywhere. You must check the Cryptocurrency Charts Live before investing.
Don’t Follow the Crowd
If there is a price increase in the market, there will buzz around the coin, and you must not follow the crowd. You must check the Cryptocurrencies Charts Live to have a better understanding and invest your money accordingly.
Buffet Rule Applies
Warren Buffet might be bearish in the market, but his rules still apply in the crypto market. So, you must follow his rules for trading in the market.
Keep Coins Safe
If you are making big profits, always prefer to convert the profits into fiat. In many cases, when the exchange is hacked or experience malware attack, the coins also get hacked. So, it would be best to keep your coins safe. It would be best to use a separate laptop and phone for trading in the crypto market. It would be best to keep your coins in an offline wallet.