Back in 2017 we saw cryptocurrency really boom and a lot of smart investors like crypto guru Robert Testagrossa were able to make some great profits from the likes of Bitcoin and Ethereum. During that time we had many people who were late to crypto who did in fact make some big losses. At the end of 2020 however, those who had FOMO previously once again had a chance to get back in, and as 2021 has rumbled on we have seen many coins skyrocket. This of course is getting more low level investors interested, but before you begin your investments, here are some things to bear in mind.
Alt coins are most certainly the coins which are seeing the biggest gains so far this year, and they can provide money making opportunities for small time investors. Alt coins are considered to be the coins with lowest market cap and there are quite literally hundreds to choose from. What everyone needs to bear in mind with these alt coins however is that as fast as they can shoot up, they can plummet at the same rate. It is widely believed that coins such as Cardano, Ethereum and Bitcoin are very much here to stay, the alt coins however, may not be, so be careful.
Sell Up, Buy Down
At this stage of your investment career it is always best to remember the core rule of any kind of investment, which is sell on the way up, and buy on the way down. There will always be FOMO about selling before the price goes up, but that is way better than not selling and then watching the price goes down.
Hold Onto Your Hat
Before investing you need to make sure that you have the stomach for this market in particular. Cryptocurrency still has a great deal of doubters and that is why the prices can be some incredibly volatile. You may see big swings in the overall cost in your portfolio and that is something that you need to ensure that you are prepared for. Many panic when prices plunge, sell up and then miss out when they rocket again. Be sure that you in it for the right reasons.
It Means Nothing
And the final thing that you should always bear in mind is that the value of your portfolio means absolutely nothing until you have sold. It is great to look at your gains and feel proud that you have investing smartly, but the reality is that these investments really don’t mean anything until you have hit the sell button. Make sure that you have a clear understanding of what exactly you are looking to make, and then get out when the going is good, if you have hit your target.
Crypto provides a great opportunity but you have to be careful that you don’t get too greedy, given the volatility of the market.