5 Do’s And Don’ts Of Crypto Investing
We know money has the power to attract money. The more you have, the more it will draw it. The statement is true in the crypto industry context. We have seen more than 300 million people now holding and using crypto. We can see a good surgeon in the number of crypto users in the market. The crypto industry is gaining 300 million USD in India alone. It has more than 100 m uses in this country through diverse sources. However, you will not find this asset as a regulated currency in the market. However, as you see, the asset class is not regulated; it comes up without any protection when adding something in the south. Adding that the transactions will gain anonymous results on crypto, the Blockchain network is also coming into the trace with the origin of use in the coming times. India is still to bring the crypto regulation bill, and we see people in the country enjoying it. You can Trade Crypto , stablecoins, bitcoins, and other coins on the most reliable platform. While here, we will review the five dos and don’ts of investing in crypto, have a look:
1). Don’t Trust Social Media completely
We see social media has the buzz of celebs that keep on supporting cryptos. They are pulling things up and down. However, the first point you need to remember is to avoid going with the flow. If you fail to understand the meaning of the content flowing on social media, consider understanding it and investing in it. Crypto is seen coming along with astronomical gains. Also, these go up with the hype and are generated by other users. It is also a Pumped community driven mainly by hypes and speculation. You need to avoid doing it.
2). Don’t Invest In Any Crypto as your Neighbour Did
We know that no two investors are the same. Ideally, you can find the investments based on many more factors like appetite, interest, return on investment expectation, and time horizon. As per these factors, you must always avoid investing money in any crypto of your Neighbour’s choice. The approach also differs, and the other investment options are also going smooth. Crypto remains an unregulated asset; hence you need to be assured about where you are heading in this domain.
3). Do Understand Your Risk-Reward Acceptance Level
No investment comes without any risk. Even if you are investing in any stable assets like gold, you are bound to face risks with it. Crypto is no different; you must check the risks correctly and without any comfort. Like the other assets, we see that macroeconomic factors also affect crypto in a big way. Therefore, we can find the investors keeping in mind the risks and rewards that go hand in hand. These require proper research, and then you must procure it without buying the assets, claims experts like the CEO of CoinSwitch. Every investor is known for their risk-reward tolerance, and you must check it accordingly before investing in it.
4). Don’t go for Instant money
We know crypto to be a volatile asset, and the coins are traded worldwide anytime. We see the price going up and down. As per the Coinbase reports compiled by the groups like fool.com, we can find the crypto level investors also holding their crypto investment for around three months. Unlike stocks, you need to have the currency for years. We see crypto assets as relatively new compared to the classes, which carry too much risk due to factors like volatility. Remember, it is not a system to make instant money. We see experts also suggesting the same and going to the next level.
5). Do keep an eye on Suspicious ICOs
The ICOs are the replica of IPOs. It is a method where companies bring out their token batches to gain mass-level public distribution. However, unlike the public companies issuing stocks with the IPOs, crypto companies are now proving the fact about track records. They seem to enjoy crypto projects with the vision of people having successful results. Also, before you make up your mind about any ICO, you need to check the whitepapers and then make the right decision that gives a good result. It is clearly stated that the investors can understand that there is no data required for the ICOs that make them suspicious in the market. Hence you have to watch out before you start using it.