Investing in cryptocurrency requires close monitoring as it is known to be volatile and invites major fluctuations. A growing cryptocurrency can be analogous to a bubble that can suddenly burst or thrive. Hence, as a crypto investor, it is essential to monitor your digital assets to avoid losing money.
Apart from this, losing money in crypto doesn’t only refer to market fluctuation. It also refers to hacking and other crimes associated with cryptocurrencies. Here are some of the top tips to help you not lose money in crypto.
Understand the Market
Understanding cryptocurrency is one of the major factors for being an excellent crypto investor. Going blindly to war without being prepared won’t do any good. The same applies to trading with cryptocurrencies.
As an investor, you need to look at the potential of a cryptocurrency and use analysis and projection to reach a decision. Poor understanding of the crypto market will lead to bad decisions.
It is inevitable to lose money in crypto if you do not know crypto investments. Hence, carefully research the market and understand the basics of cryptocurrency.
It is absolutely necessary for a crypto investor to know the market with accurate data to earn profits. Some crypto platforms like OKX also have blogs and articles that help you stay informed.
Make use of tools
Multiple tools are available that make it easier to understand the fluctuating cryptocurrencies and aid your investment decisions. There are charting tools, network statistics tools, market data tools, and more that provide insights into the market and trading potential.
- Charting Tool
- Market Data Tool
- Network Statistics Tool
TradingView and Cryptowat.ch are one of the best charting tools with technical indicators. Hence, you get a brief overview of the value fluctuations of cryptocurrencies, and the tool is completely free.
Market data tools provide a brief overview of price action, total supply, circulating supply, and other factors in real-time. Coinmarketcap and OnchainFX are one of the major market data tools.
It is important to have a platform to verify facts on information received from articles online or on social media. With a network statistic tool, you can cross-examine the facts and make an informed decision. BitcoinVisuals and CryptoMiso are recommended network statistics tools.
Social media plays an important role in fluctuating cryptocurrency value. Hence, it is essential to keep a close eye on social media platforms like Twitter, Reddit, and others as it has become a virtual gathering place for crypto investors.
The increasing popularity of cryptocurrency can invite major profits. However, it is also important to beware of Pump-and-dump scams. For instance, users create false information to boost popularity and invite mass investments. Hence, keep yourself informed and don’t fall prey to such tactics.
It is important to note that major fluctuations can be expected in cryptocurrency, especially smaller cryptos. While many want to get richer quickly, some take the patient way of becoming rich.
This refers to long-term investments in safe-haven cryptocurrencies like BTC and ETH. Long-term investments in cryptocurrencies have time and again proven to be valuable. However, it is your personal choice and preference.
Start with small amounts.
It is important not to be emotional while investing. Many investors tend to invest a major chunk of their income without considering the consequences.
Hence, it is important to start small, know the landscape, and get a gist about crypto investment. This will give you live insights and help you make the best decision.
Secure crypto wallets
It is important to note that you cannot lose money in crypto solely with poor investment. Hacking or Crypto thieves are also a major concern for losing money. Hence, choosing secure cryptocurrency exchange platforms like OKX and secure wallets is important.
Ledger and Trezor are some of the best ledgers for crypto-assets and are Cold Wallets making them secure and less prone to hacking.
Quick Tip: Keep your crypto assets in Cold Wallets, which are disconnected from the Internet.
While these tips will help you avoid losing money in crypto, it is important to understand that volatility should be expected at every phase. However, as an investor, you need to identify opportunities and make informed decisions.
Hence, carefully research the market, stay informed, and start small to reap the benefits. Furthermore, as the crypto market grows, you need to grow your knowledge in crypto investment simultaneously to make profits and not lose money.