Talks related to cryptocurrency have been in the air for a while now. In the past couple of years, growth in the cryptocurrency market has been tremendous. Investors who invested in crypto in earlier stages have earned up to 800% returns! Seeing such high returns, people are now very much attracted to invest in the growing market. Now cryptocurrency is eye candy for all and has gathered a lot of attention towards it.
The saying “higher the risk, higher the returns” is applicable in the case of crypto markets. These markets are not regulated and are volatile. So they can make your fortune or get you in debt overnight. This element of risk pulls back people from investing in these digital assets. But, is there a way where one can earn good returns as well as be on the safe side? The answer is yes! Following are the tips to follow to invest safely in cryptocurrency.
1) Learning is the key to success:
First things first, learning about cryptocurrency is crucial before investing in it. People invest in assets without having proper knowledge and end up bearing losses. Such people blame their luck for their loss. Luck indeed plays a vital role in someone’s success. But, Pre-requisite knowledge surely overpowers the element of luck. While learning one must focus on various exchanges and different digital assets available. Learning anything new is a hideous task. Wrong information can make a blunder in your crypto portfolio. unluclass has come with an initiative to make the process of learning easy and fun. They teach everything about cryptocurrency from scratch which makes it suitable for beginners.
2) Researching is a must:
There are many digital currencies in the market and choosing one out of all requires a lot of research. While researching, one must focus on two aspects.
- A) Expected returns: This is the factor which attracts the most number of people. Before investing one’s hard-earned money in some asset, estimating returns becomes crucial. One must choose the currency which offers the most returns. Such information can be collected by analysing the past performance and studying the movement of its graph movement.
- B) Risk evaluation: mere estimation of returns isn’t enough. Assets offering higher returns are usually very volatile. Investing in such assets is a risky game to play. For instance, a digital asset offering 200% returns is also prone to a loss of 250%. In such a scenario one must look for a more stable crypto coin.
Hence both estimation of risk and returns go hand in hand. The best possible combination should provide you with high returns at manageable risk. Manageable risk is the amount of risk which one can bear alone and it varies from person to person.
3) Don’t put all your eggs in one basket:
It is another common mistake committed by most investors. Once they see high returns in one of the cryptocurrencies, they tend to put all their money in it. The intention behind doing so is simple, earn the most out of it. But this can be a disastrous step. If the value of that currency starts falling, you end up making a humongous loss. So it is always advisable to invest in different places. It ensures safety as even if one currency value falls, it’s not a massive loss. Also, you must not rely blindly on someone’s call. The decision of whether to invest or not in one place should be yours. Here is where the second step plays its role. The decision of investing should depend on your research and not on someone else’s research. Also, one must not get demotivated by statements of institutions calling cryptocurrency a hoax. Such statements display cryptocurrency as “overhyped”. One must avoid such statements and depend totally on his research.
4) Be ready for the unexpected:
Even after taking a lot of precautions, unexpected things may happen. The cryptocurrency market is highly volatile and also unregulated. There can be huge price swings in the market. Even the professional investors are equally prone to losses as a beginner. So it’s nothing to worry about. Financial assets always come with an element of risk. One must always be ready for losses and never lose hope after suffering some loss. Being mentally prepared for unexpected events gives an upper hand in terrifying situations.
In the recent past, Tesla, an automobile giant, has stated that they’ll accept bitcoin for their cars. On the other hand, El Salvador has accepted bitcoin as their official tender. Such massive improvements make it certain that cryptocurrency is the future of the world. So it’s better to invest in it today rather than to repent tomorrow.
Learn about cryptocurrency online:
In present situations when the world has moved online. Learning experience as a whole has improved. One can access anything and everything in the comfort of their home. Unluclass has taken online education to a next level. They teach everything about cryptocurrency from scratch. Enrolling in their course helps you to learn about bitcoin, price estimation and much more. best cryptocurrency app Not just bitcoin, one can also learn about mining and relatively new currencies. unluclass is surely the place for beginners who want to start from scratch and enter crypto markets as a professional. So now, end your search for an online course and join the crypto bandwagon with unluclass!