How To Become A More Confident Crypto Investor

There are many benefits associated with investing in crypto.


After all, it can promise an incredible ROI. For example, Bitcoin, which is perhaps the most well-known form of crypto, has helped numerous investors reach billionaire status. However, it is not a risk-free investment. It is a volatile market, which means that you can never really predict how it will perform long-term. This means that in some cases, you could lose a lot of money.

Fortunately, there are certain steps that you can take to reduce your worries and become a more confident (and competent) crypto investor. 


Understand the basics. It goes without saying that you should have, at the very least, a fundamental understanding of what you are investing in, whether that’s the property market or cryptocurrency. This is because it will allow you to properly weigh up the risks ahead of time, while also ensuring that you understand every step of the process.


This often begins with getting to grips with common crypto terms and phrases. This will make an ‘unfamiliar’ world feel a lot easier to wrap your head around, as the concept no logner feels as complicated once you’ve expanded your knowledge in this way. 


For example, it means that you’ll understand exactly what is meant when you’re advised to use Explorer as a Service, or how companies may utilise this platform.


Don’t rely on crypto investments alone. As mentioned above, the crypto market is incredibly volatile. As such, you shouldn’t invest all of your money in this, even if you’re willing to take a big risk for a (potentially) big reward. Instead, spread out your investments as much as you can. For example, you could invest in: 


  • Stocks

  • Precious metals

  • Real estate residential and commercial)

  • P2P lending

  • Hedge funds


Generally speaking, the more diverse your investment portfolio becomes, the better your chances of making real money. This is because you’re minimising the risk associated with each individual investment, while also tapping into numerous markets at once.


Be realistic about how much you can afford to invest. When it comes to investing, it is important that you are realistic in terms of how much money you can afford to invest. This is because it’s often a question of how much money you can afford to lose if things don’t go your way. While this may seem overly negative, it can protect you from significant financial hardship in the future. 


On a similar note, it's also best to start small when trying out a new form of investment. Thai minimises the risks quite considerably, while also allowing you to find your footing in as stress-free an environment as possible. You can always choose to increase your spending on this at a later date, once you feel as though you better understand what you are getting yourself into. Consider it to be something of a trial to begin with, as this means that you then feel open to exploring other investment opportunities if it doesn’t quite pan out.


Don’t invest without careful research. Before investing in a new crypto, make sure that you do a little research ahead of time. For example, you should make sure that you understand what kind of blockchain it is, whether that’s layer one or a DFT platform. This is because it will provide you with a little more insight into potential risks.


You should also ensure that you research the founders and developers, too. This will help to increase your confidence in your investment, especially if you see that the team behind the coin has enjoyed previous success within a notoriously difficult industry. 


Set aside a dedicated time to check on your investments each month. While you may feel the need to continuously monitor your investment portfolio or specific cryptocurrency, this is likely to do nothing other than fuel your stress and anxiety. This is because its value can fluctuate day-to-day, often sending your emotions into a downward spiral.


Fortunately, this can be remedied by resisting the urge to check your portfolio or wallet every day (or every few hours). Instead, set aside a designated time each month to check in. In some cases, you may find that you’re able to check in less often, especially if you are considering this to be a long-term investment (meaning you are unlikely to cash out anytime soon).


This is something that you’ll likely get more used to over time. However, you need to be as strict with yourself as possible; otherwise, you’ll find that you are constantly giving in to the temptation to look! 


Join online communities for cryptoinvestors. Joining online communities for crypto investors is another great way to increase your confidence in this form of investment. This is because it gives you the space to ask any questions you may have, meaning that once again, you will better understand the situation that you are in. They are also great places to expand and further your overall knowledge relating to crypto, whether that’s through group forum discussions or by gaining access to expert articles and guides. 


Final thoughts. In short, there are many steps that you can take to become a more confident investor in cryptocurrencies, whether you’ve already built a diverse investment portfolio for yourself or are entering the world of investment for the very first time. 


For the most part, this confidence stems from really understanding the market and cryptocurrencies, as this allows you to make smart decisions when it comes to investing. This means that you will feel much more confident in your decision to invest, as opposed to constantly worrying whether or not you have made a mistake.


However, it is also important to be mindful of the fact that this is not necessarily something you will see a positive ROI right away. Sometimes, it takes time for a coin to take off - and this doesn’t mean that you’ve made a bad decision. Try to be as patient as you can. 

** This article is not providing investment advice of any kind. Please work with a licensed investment professional for your investments **

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