Want to Learn Crypto Investing? Here Is An Explanation for Beginners
It is undeniable that currently investing with crypto assets is an investment option that is in great demand. Investing in cryptocurrency can seem very complicated but it can actually be started by anyone. Come see this article for those of you who want to start crypto investing!
Finding Reasons to Invest
Having a reason to invest is always an important tip. The reason is, crypto investing does require an understanding of volatile values. So the reason for you to buy crypto assets is very much needed to make sure you are investing not because of “just joining in”.
According to Blockgeeks, there are three reasons for crypto investing to build on:
- You want to protect your wealth from falling dollar prices.
- You support the social vision behind cryptocurrency.
- Are interested in and like the technology behind cryptocurrency.
Beware of FOMO (Fear of Missing Out)
A bad reason to motivate crypto investing is FOMO. This term is often used in the crypto world. Because many people invest large amounts of money just because they see the value going up. Usually, the type of person who FOMO expects “quick money”. They hope that investment returns can be felt instantly without first learning about cryptocurrency. Do not imitate, Pintu friends! Always learn first how to invest in crypto.
Risk Calculation (Understand the Volatility of Crypto Values)
Cryptocurrency volatility differs from other investments. So the thing to note is don’t invest all your money. Calculate risk by understanding how crypto values always go up and down. So when you want to buy a certain number of coins, you don’t risk the entire asset because there is a risk of losing it when the value is down.
If you want to use cryptocurrency as a tool for saving, maybe you can try DCA (Dollar Cost Averaging) style savings or the Routine Savings strategy. Where you buy crypto assets every week or month with the same amount regardless of the fluctuation in value. With the Routine Savings strategy, you avoid the risk of buying too much crypto when the price is too high. You also don’t need to worry about crypto price volatility.
With these Routine Savings, you can learn to invest consistently and not make emotional buying or rush purchases.
Learn the Types of Coins
For beginners, they only know Bitcoin or Ethereum. Sometimes it is because you only know a few types of coins, so you don’t do research then have already put money into just one coin in large amounts. Even though there are many types of coins and fluctuations in value also vary. So it is important for you to learn other types of coins besides Bitcoin.
Bitcoin will be the only cryptocurrency until at least 2016. If you want to be successful in crypto investing, Bitcoin deserves to be your long-term investment. However, after that came many other coins called “Altcoins”. You can see the types of coins as well as the ranking position and value fluctuation on Coinmarketcap as a reference for your first purchase.
Avoid buying for only one coin. You have to be able to see opportunities and invest in various coins. This can help to see the potential of the coins you invest in in the future.