Today, if there is one investment that can turn your life around overnight that is cryptocurrencies. This has proved true for hundreds of thousands of investors who are now basking in wealth.
Carl Runefelt is a prominent example; a few years back, he was stuck in a nine-to-five job at a supermarket. Fast forward to today, he is a multi-millionaire who drives his dream car Bugatti in the streets of Dubai and roams the globe in his private jet!
While speaking on his YouTube channel, The Moon, he says, “I heard about Bitcoin more than four years ago, and I was actually a gold and silver investor back then. I was not a big investor because I was actually working in a supermarket back then, but my small little net worth that I had back then, I was pushing into physical gold and silver. I was a big researcher of the financial system. I was very interested in how money worked. I was interested in how the central banking system was working, and I realized back then that it was a very broken system.”
Success stories such as Carl’s are galore that invested in crypto. So if everyone can, you can too. Apparently, the path of crypto investment seems complicated and it gets even more if you do not have prior knowledge on this subject – you’re a beginner who just heard all the good things about it and now want to invest.
Don’t fret; this is where we come in to lighten your burden and guide you through some of the major tips that you should know before you wade into the crypto waters.
Advantages of Cryptocurrency
Before you discuss some of the critical tips for cryptocurrency investment, let’s put light on what makes cryptocurrency an excellent investment. What benefits does it offer that investors are rushing to pour in their money?
Unlike traditional banking transactions that rip you off with hefty fees, a cryptocurrency transaction fee is zero to a few dollars. This process is also relatively straightforward.
Every transaction that you make with crypto is highly secure and immutable. This security is ensured by the cryptographic method of the blockchain network.
You do not have to prove your identity or meet the prolonged eligibility criteria in crypto transactions – as is the case in traditional banking.
If you have ever sent money to another country you’d know that it takes a couple or more days to transfer funds to another country. Cryptocurrency transactions merely take ten minutes to make complete cross-border payments.
Carl Runefelt adds, “Bitcoin is the only money in the world that has no political attachment. Your bank money can get frozen, or your gold can get confiscated but with Bitcoin, you can literally cross a border with your private keys in your head, and you can travel the world with millions of dollars literally stuck in your brain.”
Tips You Should Know As An Investor
If you are about to invest in cryptocurrency, mind these tips and tricks before you dive into it. You’ll be thanking us later!
Brace yourself for volatility:
Before you jump into it, remember that volatility is the biggest demon that haunts cryptocurrency prices. It hardly takes a statement from a prominent personality to radically affect the value of cryptocurrency.
This means that you should be on your toes when making trading decisions. Do your research and then reach conclusions and make your moves.
Diversify your crypto portfolio:
Crypto experts warn against placing all your eggs in one basket. This means that you should invest not just in Bitcoin but place your bets on altcoins and stablecoins at the same time. This strategy will keep you on the safe side.
Carl Runefelt expresses, “I would also say that, of course, you can diversify into other coins as well. Personally, I have bought a bunch of other coins that I hold in my portfolio, and I think some diversification is fine, but in the bear market and even in the bull market, I always think that you should have the vast majority of your crypto portfolio.”
Use both the hot and cold crypto wallets:
Did you know that you can store your cryptocurrencies online and/or offline as well? Being a beginner, the ease of access to the hot offline wallet is more useful and versatile. Cold wallets, however, do offer more protection from hackers and other miscreants.
You should be vigilant:
Although cryptocurrencies are safe investments if done the right way, you should be on alert and agile to make astute decisions regarding crypto investments. This is especially recommended because crypto prices are erratic due to unexpected volatility every now and then.
Make Your Move
Staying vigorously updated with all the developments in the crypto market is another critical tip that you should take to stay ahead of the game. Your prudence will only pay you more!
Remember, if you think you can, you are halfway there!