How to make money on cryptocurrencies (and not lose) ?
Here are three tips that will make you avoid the most common mistakes made by new cryptocurrency investors.
Buy when it goes down, sell when it goes up.
The basic rule that will make you avoid the most common mistake. Cryptocurrencies are characterized by very high volatility - one day their price can change by many percent, both up and down. When it goes up, the media starts talking about it, more and more people want to profit from it and the buying frenzy begins. However, let us remember - that always after a period of growth there is a correction - a drop. Sometimes it is sudden and very large. So, if you hear on the radio or television that a cryptocurrency is experiencing peaks of popularity and its tokens are reaching cosmic prices - do not buy it - because its rate may immediately crash and fall dramatically. And the opposite situation - when we hear about the collapse of the market, large drops - this is the best time to consider buying a cryptocurrency. If we invest in stable, well-known tokens there is a very good chance that in a few days, weeks or months their price will rise again and then we will be able to realize our profits.
Don't panic - HODL!
HODL is a very well-known word among people who successfully invest in cryptocurrencies. It means - "Hold." New investors in the cryptocurrency market very often fall into a trap - if they have already bought, for example, Bitcoin or Ethereum - because everywhere around they hear that it is a very good investment and the rates are soaring into space, and after a few days the rate suddenly collapses - in panic they sell their digital assets. This is the biggest mistake you can make. If we have already bought our token, which is well-known, has its own long history and is not just a fad then remember one thing - we do not sell. It is enough to wait a bit, keep our tokens in the portfolio (HODL) and wait for the next upward wave. When it will happen nobody can predict it of course, but usually it is a few days, weeks, months. Let's not panic, this is the basis.
Only stable cryptocurrencies (at the beginning).
If you have not yet invested in cryptocurrencies and are just about to make your first investment - choose only cryptocurrencies that have been in the market for a long time, provide a guarantee of stability and are not a fad or Internet craze. To such cryptocurrencies we can certainly include Bitcoin, Ethereum, Ripple or Litecoin. Each of us would like to get rich quickly, especially since more and more often you can read about cryptocurrencies, whose rate increases from day to day by tens or hundreds of percent - but unfortunately, by then it is usually too late - and such an investor becomes a holder of tokens, whose value is only falling, usually with no chance of growth. Unfortunately, there are also many cases when a cryptocurrency is created with the sole purpose of fraud - to attract buyers to worthless coins and run away with investors' money. Of course, these are extreme situations. That's why our cryptocurrency exchange Impily offers the opportunity to buy only such tokens that are promising and somehow proven, which allows you to significantly reduce the risk of buying worthless digital coins.
Attention! The above article neither in whole nor in part constitutes a "recommendation" within the meaning of the provisions of the Act of July 29, 2005 on trading in financial instruments or the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of April 16, 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6 / EC of the European Parliament and of the Council and Commission Directives 2003/124 / EC, 2003/125 / EC and 2004/72 / EC and Commission Delegated Regulations (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65 / EU of the European Parliament and of the Council as regards organizational requirements and operating conditions for investment firms and defined terms for the purposes of this directive. The content contained on the website does not meet the requirements for recommendations within the meaning of the above-mentioned act, incl. do not contain a specific valuation of any financial instrument, do not rely on any valuation method, and do not identify investment risk.italic text