These days, the most talked about and the hyped topic is cryptocurrency. Every influencer, news channel, and social media platform is talking about cryptocurrency. Due to its massive hype, everyone is exploring, investing, and trading in cryptocurrency.
Cryptocurrency is just like the money you have in your pocket but it’s internet money, it’s virtual money. We can send this cryptocurrency quickly to any person in any corner of the world within a few minutes.
Cryptocurrency is not rocket science, everyone can use it. But one should have basic knowledge about it before getting into the market.
Why Should One Invest In Cryptocurrency
Cryptocurrency is the safest currency as well as a great flippable asset. There are tons of reasons why one should invest and trade in crypto.
To make your crypto experience better we have compelled a few reasons why you should start trading in crypto.
1. Easy Transactions
Cryptocurrency transactions are very easy, secure, and more straightforward than any other type of transaction. A simple mobile application is used to buy and sell cryptocurrencies.
The biggest and most important advantage of cryptocurrency is decentralization. It is a decentralized system, with no centralized authorities control over it.
Decentralized cryptocurrencies are secure forms of payment because they are based on cryptography and blockchain security.
In cryptography, the hash rate is a significant factor. The more computing power required to compromise the network, the higher the hash rate.
Bitcoin has the highest hash rate of any network, making it by far the most secure cryptocurrency. But you should always know the basic difference of Bitcoin and cryptocurrency.
3. A flippable Asset
Cryptocurrency is the safest flippable asset in the market right now. You can easily flip it if someone wants it.
While some people are just interested in investing in cryptocurrencies for the sake of profit, others may benefit from the opportunity to use them as a medium of building quick-flippable assets.
4. Growth and Development
The cryptocurrency market has been one of the most rapidly growing markets in most of our lifetimes. In 2013, the overall market capitalization of the cryptocurrency market was around $1.6 billion. It had risen to around $1.3 trillion in November.
5. Excessive Profits
It’s no secret that over the last 12 years, Bitcoin has outperformed all other assets. When Bitcoin first appeared in 2009, it had almost no value.
Over the next few years, it would rise to a fraction of a penny, then tens of thousands of dollars. This translates to millions of percentage point increases.
Factor To Consider In mind While trading In Cryptocurrency
Before investing and trading in cryptocurrencies one should always keep these factors into consideration.
1. Invest What You Can Afford To Lose
Always invest the money which you can throw away without any regret. Money that you don’t have to pay your bills from and be prepared for the worst.
2. Research Before Entering Into Any Coin
There are thousands of altcoins out there, not every project is going to survive. You need to read about the project. Many of them also get paid sponsors so be careful!
3. Buy Every DIP & BUY In Parts
Let’s say you have 100$ to invest in Ada; instead of buying 100$ worth Ada on CMP buy in 4 parts. This will eventually average your price and lower the risk.
4. Avoid Leverage Trading
In case you’re new to crypto, we will recommend avoiding leverage trading. Crypto is a very volatile market. One news item, whether fake or real, can liquidate your account. Remember Hodl is the best strategy.
5. Buy Low & Sell High
You should always buy low and sell high. Normally when we see green candles; we rush in and buy. After that when we see a dump, we have a feeling of securing what’s left and we sell low.
6. Diversify Your Portfolio
Never invest all the money in one coin. Diversification is the key!
7. Goals Without Greed
You should have your selling goals as greed will take you nowhere. In simple words, if you have bought a coin for the goal of 10X profit. Do not sell before 10x if that’s your goal and don’t wait after 10x.
Word of Advice
Crypto is a very risky market. One minute up next minute down. We would recommend you to do proper research and study before investing in any coin. Be familiar with market trends and trade wise.