Tips for investing in cryptocurrencies

The first tip for investing in cryptocurrencies is that you should study the various alternatives before deciding to invest in one or a set of cryptocurrencies investing in cryptocurrency.

There are some personalities who share their advice about investing in cryptocurrencies, where several founders of some cryptocurrencies and CEOs of some companies dedicated to the business that surround this new invention that everyone talks about appear.

Despite growing doubts about the existence of a bubble around most of these cryptocurrencies, it seems evident that blockchain, the technology behind these cryptocurrencies, has come to stay and transform all kinds of industries. In this sense, many personalities have made their fortune thanks to the investment of cryptocurrencies.

Not invest too much

You know how much is too much, and that varies greatly from person to person. If you are not sure, invest less than you think, that way you can minimize the mistake of investing what you should not.

In general it is very easy to be wrong when you start. It is time to dedicate time to understand in depth the impact of this revolution.

In the beginning it is easy to get carried away by comments, rumors, news, more than solid information, with foundations. It is normal for that to happen.

Something very healthy as an investment strategy in such volatile assets is to determine what total percentage of the investment portfolio is going to be assigned to cryptocurrencies.

At most 1%, 2%, or perhaps some more risky and daring rise to 5%. More than 5%, can be fatal in any of the usual violent shocks that the cryptocurrency market has.

As a recommendation for those who want to take their first steps, never invest more than 1%.

Matthew Roszak: “Invest in Bitcoins”

On the other hand, Mattehew Roszak advises investing in Bitcoin. The businessman who founded several software companies, before entering the world of cryptocurrencies, expresses that investments in cryptocurrencies and his Tally Capital and Bloq projects allowed him to amass a fortune of approximately 900 million dollars.

He considers Bitcoin to be one of the biggest undervalued assets he has ever seen in his career. He is extremely optimistic about Bitcoin. Taking into account the investment capital and the human capital dynamics that are poured into this ecosystem, he considers Bitcoin to be one of the greatest generational opportunities for investors and entrepreneurs.

The easiest way for people to invest in this ecosystem is by buying bitcoins, which they like to characterize as a follow-up inventory that represents this exciting new frontier in technology, and much more.

Michael Novogratz: “Buy multiple digital currencies”

CEO of Galaxy Digital, one of the largest cryptocurrency trading houses on Wall Street, from the beginning firmly believed in cryptocurrencies in which he has invested millions of dollars, which has allowed him to increase his fortune estimated today by around 700 million of dollars.

“I feel like this revolution starring blockchain, Bitcoin, Ethereum and ICOs is going to be the biggest bubble of our lives.”

He claims that crypto is the best investment of his life to date. So it sends a clear message to anyone who wants to make future worthwhile investments. Traditional finance is no longer profitable by any means, while cryptocurrencies have great growth potential.

Diversification of investment portfolios remains the number one priority. That also means that investors must buy different digital currencies. Not putting all your eggs in the same basket is a viable trading and investment strategy.

On the other hand, most investors show two alternatives within this crypto market.

Short-term trading is possible

Short-term trading is when you buy cryptocurrencies and only plan to hold them for a short time, and then sell them when the value is higher than when you bought it. You could keep it for days, a few weeks, or a few months. The advantage of short-term trading is that you will have the opportunity to make a high percentage profit.

Long-term trading is preferred by many

Many cryptocurrency traders hold their coins for a long time because they know that the price of the coins will eventually rise in large quantities. This means holding the coins for more than a year.

When you trade long-term, you don’t have to worry about trends and read charts every day. All you have to do is buy the coins and keep them for a few years.

What you need to start trading cryptocurrencies

Find a trading platform: The first thing you should do if you want to trade cryptocurrencies is to choose a trading platform to use and open an account.

Choose a cryptocurrency wallet: This is a tool you use to store and send coins. If you have chosen a cryptocurrency to trade, chances are you have your own cryptocurrency wallet.

Start buying coins: If you are a beginner, it may be more practical for you to start trading coins with high market limits.

Now, remember that cryptocurrencies are very volatile, so depending on the type of operator you want to be, you will need to have as much information as possible.