It is nearly impossible to earn a large amount of money in a regular job, but you can raise funds and invest them in a profitable business or asset. One of them is cryptocurrency. Investing in digital money will be an effective and safe investment if you choose the right asset.
Users now have doubts whether they choose this way of earning money and making a profit. This is due to the difficulties that the investor faces. The first is that we still don't know how to invest money properly. The second problem concerns novice investors who don't know how much money to spend. How to invest correctly in cryptocurrency so as not to lose your money?
The first rule is to invest 5% of the resources
At first, the investment process can seem overwhelming and complicated because you run the risk of losing your money. This fear does not allow focusing on the benefits of the procedure. Better calculate the risks when investing and think about profit, not fear. If you don't take the risk now, you won't get your winnings.
Why invest only 5% of your home's value? You can increase the amount up to 10%, but no more, because you have to remember that this money can simply get lost or disappear. Any investment (even the most careful) puts money at risk… If you deposit 10% and lose it all, everyone will have 90% to recoup their costs. Also, with the next profit, you can take another risk and make a new investment.
For example, you have $ 1000. Take 10% of that, which is $ 100, and invest. At the same time, you have $ 900 that you can use to pay utility bills and buy groceries. If you lose those $ 100, you can withdraw 10% from the $ 900 ($ 90) to invest again. So the question is to invest 10% of value. This is called a “backup”.
The second rule is to invest safely
The best way to invest your money is called “safe play”. It consists of putting half (or less) of the investment money in the most stable cryptocurrencies and the rest in the more volatile “young” coins. So at least half of your funds will make a profit, while the other half can win or lose.
You can give examples of $ 100. At the moment, the two most stable cryptocurrencies are Ethereum and Bitcoin. They have been on the market for a long time, have numerous advantages and have acquired a stable character. You will invest $ 50 in the ether.
For the rest of the amount, buy more volatile and trendy coins. These are usually low-priced coins, but this is not always the case. It can be ripple, litecoin or many other altcoins.
You can invest in one digital currency or buy 5 different ones… In this case, you risk less, but it is better to think and study what you are investing.
This is one of the most common ways to invest in cryptocurrency. As the name suggests, the objective is to invest your money in order to obtain the most efficient and safe asset possible. For this, the most stable and reliable currency is chosen, for which it is difficult to reduce the price artificially or fraudulently.
These attachments are very easy to understand. You should choose a cryptocurrency with a high market capitalization and average price, which generally characterizes the coin as a valuable asset.
Rule three – short-term investments
This is also a very common way to invest capital, however it is the riskiest of the three if you are just starting out. While it is quite risky, investors understand that the more they risk, the more they can get in return.
To invest profitably, you need to constantly monitor the resources of each of the cryptocurrencies you want to invest in. You need to know what is happening around the world, in the digital asset market, and also analyze how certain events will affect the price of coins.
For example, suppose a large bank (HSBCHoldings) has recently purchased millions of Ripple coins. This is very important news as it will make the bank confident in the prospects of the XRP coin. Perhaps they have some information from the internal market that will contribute to the development of the currency. With that, the community will be interested in the coin, therefore, the value will go up. In this case, you will need to buy Ripple quickly to maximize your return on investment. Do not sell coins for a week to see if the coin develops in the future. Then exchange XRP for dollars and invest in another currency that you think can go up in the short term.
There are numerous ways to invest in cryptocurrency. In fact, they differ in how big the risk is and what the outcome of investing in coins will be. But it is necessary to remember that even with less risky investments, it is necessary to study the asset and analyze its development.
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