The cryptocurrency reached new heights last year december which continued into January of this year. It was also the moment that a lot of people took their first steps in the crypto market.
But then the market came crashing down all the people who just bought crypto sow their investments vanish before their eyes.
What went wrong?
The most important thing with investing is to define your goals and the ways you want to reach those goals. This goes double for investing in cryptocurrency where things can get quite hectic and unpredictable.
With cryptocurrency it is not a good idea to buy an altcoin just because it is going to the moon, in fact if this is happening you already missed your opportunity.
To reach your goals you need to settle on a investment strategy, document what you are trying to achieve with your investments and how you want to realize reaching those goals.
When you write down you are trying to reach your goals you are creating guidelines for yourself that will help you with your cryptocurrency trading. Having a strategy will also help you avoid taking unnecessary risks.
When trading in cryptocurrency you are bombarded with new information and possible opportunities for what seems every second of the day. It is easy to become distracted for what you set out to do in the first place so it is important to keep a clear head and focus on your end goal. It might sound simple but working out your strategy will help you immensely.
Don’t be afraid to set high goals when you focus and work hard towards getting what you want you will be amazed what is possible.
Develop your strategy and follow through
It is also important to look for flaws and or weaknesses in your strategy and keep adjusting as you keep perfecting your investment strategy. Be sure to devise a strategy that fits you, for example I found that day trading crypto is not my thing, the constant buying, selling coins just for profits just isn’t me. I like to invest in coins that I believe have potential, utility coins with community support like Steemit and SmartCash for example.
That’s why my strategy is long term investment in community focused utility coins and buy them preferably in a Pre-ICO.
This also in line with one of most important pieces of advice when you are buying and selling crypto….Buy low and sell High. So for example buying Bitcoin after the price has gone up 400 % is not a good idea. But investing in high potential coins whose prices have gone down 80 % because of the current slump….is exactly the right move.
It probably feels counter-intuitive for newcomers but buying crypto at “bad” times like these is the smart thing to do instead of waiting for the market to bounce back and start buying when the prices go up again. Remember with cryptocurrency things can change very fast, before you know it you have missed the opportunity to buy in cheap and take advantage of the situation.
This is a good time to buy cryptocurrency
Whatever your strategy the best thing is to start small and be patient. Greed and FOMO (Fear of Missing Out) are definitely you want to avoid because this will lead you to make bad decisions. Use strategies that you are comfortable with because otherwise you will only get frustrated. If waiting and long-term investment is not your thing go for a short term strategy.
But the most important takeaway is….define your goals, think about what you want to achieve. Write down your strategy and use this as your compass when you are navigating the often stormy seas of crypto.
