Here is How You Can Earn Higher Returns from Your Digital Assets
August 17, 2018 11:48 am
Ever since cryptocurrencies were introduced to the world, there has been mixed emotions from users and investors. Some of them see this as a complete scam, while others look at it as an opportunity to invest. This article will help you develop the skills and strategy that will allow you to grow your wealth the right way using cryptocurrencies.
Research is the most important part of this process. It can make the difference between making you rich or losing all your money. Follow the latest news on cryptocurrency and blockchain technology on CoinDelite.com. Get the latest updates on upcoming ICOs (Initial Coin Offering) on ListofICO.com. You should also learn about the cryptocurrency scams that are taking place across the globe.
Over time, you will develop the intuition that will allow you to differentiate a good investment from a bad one. This is extremely important. As of 2018, one of every two ICO has failed to raise the required funds.
Always take the research and news that mass media provides with a grain of salt. These outlets are often paid by the company for their marketing and advertising. It’s always better to do your own research and analysis before investing.
Be Wary of Scams
There is no shortage of scams in the crypto world. People have been cheated out of their money for the promise of a get-rich-quick scheme. Investors should be vigilant when researching companies to invest. Recently, a Korean company claimed to discover hidden treasure in a Russian ship worth billions of dollars. In the end, the company took the investors money and disappeared. This incident is just the tip of the iceberg. Ensure that you always make a well-informed decision before investing your money.
Never Put All your Eggs in One Basket
This famous quote was said by Warren Buffett, one of the most successful investors of our time. What this essentially means is that you should not put all your money and hopes into a single entity. It’s a sure-fire way to put your investments at risk. You should always try to diversify your investments because in case one of the cryptocurrency crashes, you will not end up losing all of your money.
Invest in Companies that Resonate with you
If you find an upcoming company whose business plan and strategy seems a winning combination to you, try and put aside a small amount as an investment in their idea. Usually, in the case of a new company, the prices of their cryptocurrency tokens is quite low.
Ditch Bitcoin (for now)
As you are starting out with your cryptocurrency investments, it’s a safer bet to avoid Bitcoin in the start. This is because Bitcoin is highly volatile and this makes it unpredictable. Another factor that stands against Bitcoin is that the trading fees are quite steep and the transaction times are significantly slower. Instead, choose Ethereum as your cryptocurrency of choice. You can also use ETH to purchase other cryptocurrencies as well. As your profits grow, you can opt to purchase Bitcoin in the future.
Prepare to Lose your Investment
You read it right. When you start out with an investment, looking to make significant profits, you will need to put a considerable amount as part of your initial investment. We recommend you start out with at least $500-$1000. You should mentally prepare yourself that you might lose this money. This will help soften the blow for any loss that you may encounter. This strategy will allow you to be bold with your investments and make wise decisions even when things don’t see to go your way.
Withdraw your Investments
This is one of the strategies most advisors will never tell you. Once you make a significant profit, it is recommended that you withdraw your initial investment. That way, you get your initial investment back and now you are trading cryptocurrencies using earnings. This will also allow you to take bigger risks.
Secure your Crypto Assets
When you trade in cryptocurrencies, you will need to sign up at one of the cryptocurrency exchanges. There have been plenty of incidents where users lost money due to compromised security that was a direct result of hacker-led cyber attacks. Research online for the most secure cryptocurrency wallets.
Get a Physical Wallet
There are plenty of wallets in the market which allow you to store your cryptocurrency in a flash-drive-like device. The currency can only be accessed when the device is connected to a computer, making it a lot more secure than online wallets.
If you need even better security for your investments, it’s highly recommended that you store your cryptocurrency in cold vaults. These vaults physically store your cryptocurrency in a safe vault to ensure that hackers cannot access your funds.
This is not an exhaustive list. However, you can employ these strategies to grow your wealth and capitalize on cryptocurrencies.