If you’re considering investing in cryptocurrencies, then you must read this guide. We are going to answer the big question: Is there a sense to put your money in cryptocurrency? Because before you invest any dollar, you need to know exactly what you’re doing.
So, before you purchase bitcoin, come with us and learn how to invest like a professional in the field, to maximize your chances of making a profit.
Why should you invest in cryptocurrencies?
You should invest in cryptocurrencies, but before you do it, you need to be aware of the following:
- How much money you should invest
- How much money you can really earn from cryptocurrencies
- What is the risk of losing money in crypto
- When you should buy cryptocurrencies
- When you should sell them
But before we give into that, let’s talk about the reasons why you should consider investing in cryptocurrencies:
- They have more room to grow than traditional companies and assets
- It’s easy to buy and sell cryptocurrencies, especially thanks to stablecoins
- The movements in the crypto market are faster and more dynamic than in traditional markets
However, the same volatility that makes them highly profitable, also makes them highly risky. Therefore, we invite you to follow these tips:
- Only invest the money you are willing to lose
- Only pick projects with solid fundamentals that actually address and aim to solve real-life problems in important industries
- Think long term – because trading can be profitable, but for the majority of people, it’s too taxing and complex
In the next section, we will talk about the risk of cryptocurrencies, as well as a golden piece of advice that will minimize the risk while amplifying your profits.
Can I lose money investing in cryptocurrencies?
Let’s be honest: you can lose money investing in cryptocurrencies. In fact, you can lose it all. The frauds in the crypto sphere are not uncommon, but the people that lose money in crypto usually fall in any of the following categories:
- They invest more money than they should
- They start investing with a long-term mindset in the middle of a bullish market run
- They pick projects without solid fundamentals
- They pick hyped projects
- They start playing with futures and leveraged trading without a solid background in trading and risk management.
If you do one or more of these things, you will lose a lot of money if not all. You already know what to do, but on top of that, follow these tips:
- Aim to buy and accumulate coins when the crypto prices start to fall. The bear market is your best friend for buying cheap, so you can sell a lot higher when the bull run comes
- Prepare a selling strategy for the bullish run, so you can take your profits gradually as the peak comes nearer and nearer
It’s not really that hard – it all comes down to buying solid projects when they are cheap and selling them when they are more expensive. Following this simple plan, you will stop yourself from being a holder of very heavy bags, and instead, make you a smart holder.
What are the best projects to invest in?
Now, it’s time to talk about the most solid projects in the sphere. So you can research them later on your own, here you have the list:
- Ethereum (ETH)
- Solana (SOL)
- Polkadot (DOT)
- ChainLink (LINK)
- Uniswap (UNI)
- Binance Coin (BNB)
- Polygon (MATIC)
- Rune (RUNE)
- Terra (LUNA)
All of these projects have solid fundamentals because they have plans and evidence that they can solve the problems they promise to. Therefore, we can expect them to make a huge impact in their respective industries, all thanks to blockchain tech.
Of course, you should also accumulate bitcoin when the BTC price is very cheap. All the crypto prices will crash during the bear market, and as it usually lasts 3-4 years, you will have plenty of time to invest and hold your crypto to sell it during the next bullish run.
Also, invest in a proper cold wallet like the Ledger Nano, so you can store it safely and only move it to an exchange like Binance once you start selling. Many people commit the mistake of holding all of their crypto in an exchange, but as we know, they can be victims of hacks, data breaches, and even fraud.
Final Words
As you can see, it makes a lot of sense to invest money in cryptocurrency. Only that, you need to do it smartly. With the advice we’ve brought you during this guide, we are more than sure that you will invest the right way and actually profit from it.
If you have more questions, feel free to ask us in the comments. We will get back to you!