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Responsible Investing: 13 Tips For Investing In CryptoCurrency

I’m no crypto expert, that’s why I reached out to leading cryptocurrency experts to get their tips, tricks, and warnings about what to look out for when investing in Cryptocurrency.

#1 Make sure to have a clear cut strategy either as a trader or investor

Too many people enter the marketplace without a strategy and end up getting burned on their investments. If you want to be a trader make sure you have an entry point, and an exit point both on the high side and the low side. You need to know when to get into a position with profit, as well as when to exit without too big of a loss.

If you are an investor remember to do your due diligence, you need to look at the team behind the project, the use case of the company, and how viable the use case is. If the company doesn’t have a strong use case then they are eventually going to run out of money.

Contributor: Kyle Asman from bx3.io

    #2 Don't blindly trust the rating websites

    Do your own due diligence. If you invest in the pre-ICO stage, you should treat this as any other kind of startup investment. Check the team, scrutinize the white paper, ask tough questions and make sure the company has a solid plan for the future.

    Contributor: Yael Tamar from topofblockchain.com

      #4 One option for cryptocurrency investing is to invest in the mining itself

      In order to get a good ROI from crypto mining, you need access to cheap electricity. There are only a few places left in the world where it is profitable to invest in mining - such as China, Canada, and Russia. At Cyberian Mine you can buy preinstalled bitcoin mining machines that benefit from some of the cheapest and greenest electricity on the planet.

      Contributor: Malcolm Cannon, CMO from cyberianmine.de

      #6 Initially, you should invest conservatively and only purchase blue chip cryptocurrencies, such as Bitcoin and Ethereum.

      Note: you don't have to buy a whole Bitcoin; you can buy a very small fraction of a Bitcoin. After you gain some experience, you might foray into altcoins. Don't day trade or invest in ICOs unless you're a savvy investor willing to take risks. Be patient. Eventually, most coins increase in value, but it might take several months or even years.

      Contributor: Mark Grabowski from markgrabowski.com

      #9 Know when to take a profit

      The most successful gamblers know when to walk away from the table. Don't get greedy. Set realistic profit goals and sell or at least pare down once you hit them. Cash out your initial investment as soon as you can, so you're playing with house money. Sometimes, converting your coins into fiat and sitting out of the cryptocurrency market is your best option. The market can be quite bearish at times and there's no profit to be made.

      Contributor: Mark Grabowski from markgrabowski.com

      #11 Some words of warning

      I can tell you right now most cryptocurrencies are manipulated by the super rich playing with the press. 

      When it comes to ICOs most are indeed scams, you really need to look into the vesting and token structure to see if the owners can dump it after the ICO. 

      Also, the team and progress of the technology will help you understand its legitimacy. 

      Finally, if its based in the USA and registered as a security is probably legitimate, otherwise, there is nothing holding them back from scamming you.

      Contributor: Chase Hughes from EquityUp.io and Vartheta.com

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      Written by Nathaniel Fried

      Co-founder of Fupping. Busy churning out content and building an empire.

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