If you want to be like these wise investors sometime in the future, then follow these 4 investing strategies to increase your chances for success.
Crypto currencies are extremely volatile. The price can change suddenly within minutes. Take this volatility seriously before entering a trade. Always have a plan about where to place your stop loss to minimize your loss.
Prepare for volatility by looking at your RSI indicator and support and resistances.
2. Be Careful
Do your research before you start investing in bitcoins and other cryptocurrencies. When you’re dealing with hard-earned money, you don’t want to lose everything in one day. You’re investing to make a profit sometime in the future. Don’t go all in without studying what you’re putting your money into.
3 – Diversify
Don’t put all your eggs in one basket, so to speak. Don’t just invest in bitcoins. If possible, invest in other cryptocurrencies as well as traditional assets like stocks, bonds, and mutual funds. At least if bitcoin prices drop, then you’re not going to be totally in the red. Your other investments will help keep you afloat.
4 – Keep Your Crypto Safe in Cold Wallets
Investing is a long-term game, and it is not advisable to keep your cryptocurrencies in online wallets such as your exchange’s wallet, or even your mobile app wallet. Keep your private keys in cold wallets such as paper or hardware wallets since these aren’t connected to the Internet. You can keep small amounts in your online wallets, but the bulk of your investments should be offline.