Investing in cryptocurrencies is fun and easy and one of the quickest ways to financial independence and get one step closer to your dream life. All of us might have heard of the people that were stuck in their day-to-day life not so long ago and now have made all their dreams come true using the power of cryptocurrencies and making the right investments at the right time.
While no one can say for sure which of the cryptocurrencies will be the next big thing and make thousands and millions of dollars for its investors. There are a few sure-shot cryptocurrency investing tips that’ll help you secure a profit and take one step more toward making your dreams into reality. What’s more, we bring you the CoinStats Profit Calculator that will help you make informed decisions before investing and also use it as a profit calculator for your investments. So without further ado, let us dive right into it and get started.
Cryptocurrency Investing Tips That’ll Help you Secure A Profit
Everyone wants to make profits from investing in cryptocurrencies, but not everyone ends up being on the profit-making side. The nature of the crypto markets is such that it can be very volatile and the prices of any cryptocurrency can go on a rollercoaster ride every few days, months, or years, as seen as recently as the $LUNA crash where thousands of people lost a lot of money.
Thus, there is a need to follow a few certain rules while investing in cryptocurrencies. And in this article, we bring you some of the most important cryptocurrency investing tips that’ll help you secure a profit.
1. Make Informed Investing Decisions:
The foremost important thing to keep in mind while investing in cryptocurrencies is to make informed decisions before investing your money into any token. The acronym DYOR (do your own research) in crypto is very well known but not everyone does that. It would be the best policy for any investor to perform detailed research into any crypto project that you are planning to invest in.
2. Diversify Your Portfolio
Diversifying your portfolio is as important as doing your own research when investing in cryptocurrencies. It would be the best strategy to not put all your eggs in one basket and ensure that your investments are well spread out amongst projects and tokens that you have researched well into.
3. Do Not HODL for long
HODL is the clarion call amongst all the cryptocurrency investors. But as much as it means to the crypto community, it is not the best strategy. If you HODL for too long you will end up losing out on a lot of profit-making opportunities.
4. Take Regular Profits
Once you’ve decided what cryptocurrencies to invest in and how to diversify your portfolio, make sure that you take regular profits out from your investments. Not every cryptocurrency token will give you a 10x or 100x, and even a small 10%,20%,30% profit, etc. on a timely basis will make sure that you always end up in green.
5. Do Not Get Attached to the tokens
Many people make the mistake of getting too attached to the cryptocurrency tokens that they are invested in. That prevents them from selling those tokens for a profit or cutting their losses when the price of those tokens drops significantly.
6. Learn to read charts
While it might not be for everyone, one of the best things you can do for your crypto investments is to learn how to read price movements and charts. They will help you make an informed choice while deciding on your crypto investments. Some of the most successful people in crypto are the ones who know how to draw lines and read charts.
7. Invest only what you can afford
It is a good saying in crypto that always invest what you can afford to lose as the crypto market is very volatile and can be very erratic.
8. Invest in Wallets
while the majority of cryptocurrency exchanges have robust security in place, they are still prone to vulnerabilities and do not give you total control over your tokens. Thus investing in cryptocurrency wallets is one of the best things you can do for yourself. One of the best free crypto wallets in the world is the CoinStats Wallet, and then there are other hardware wallets such as Ledger Nano X, etc.
The above are some of the most important cryptocurrency investing tips that’ll help you secure a profit in the crypto market. It should be kept in mind that these are not a piece of financial advice and should only be treated as educational in nature. But now that you know what you need to do to make profits, the next step is to learn how to use the best tools in the world to your advantage.
CoinStats Profit Calculator
CoinStats provides you with some of the best tools in the crypto world to make your crypto journey easier. No matter what wallet, cryptocurrency exchange, etc. you use to make your crypto investments, you can connect all these portfolios to the CoinStats Portfolio Tracker and keep an eye on them in one single place.
On top of that, another powerful tool is the CoinStats Profit Calculator which will help you calculate your profits in a very easy way without having to do complex maths while making your investing decisions. You can use this tool to decide when to buy, sell, or what to do with your cryptocurrency investments.
The world of crypto is as enticing as it is risky and navigating your way through it can be a tricky affair. The tips above will take you a long way if you are just starting out on your cryptocurrency journey or are at any point in your journey. And to make your life easier, we at CoinStats bring you the best tools in the business for free to make sure that you are making the best out of your cryptocurrency investments.
About the author
Narek Gevorgyan – Founder and CEO at Coinstats
Narek is the founder and CEO of Coinstats and helps over 1,000,000 active users manage their crypto portfolios.