2022 has been a roller coaster ride for crypto investors so far. We have witnessed tremendous growth in the crypto market from September to November last year. After that, it has been going downwards continuously. The market capitalization of cryptocurrencies had fallen to $1.5 trillion from its all-time high of $3 trillion. Bitcoin too touched almost $30000 at one point in time. Though some respite came when Bitcoin touched $45000 recently but that momentum seems to be lost now. Bitcoin is trading at around $39000 now. Overall, the prices of cryptocurrencies may fall further.
It doesn’t matter whether the crypto market is up or down, we have seen the flow of new money is consistent. Retail, as well as institutional investors are entering the world of cryptocurrencies. I have seen many newbie crypto investors investing just because of the perception that crypto is easy money. But the truth is easy money doesn’t exist anywhere. In fact, the crypto market is the most volatile. You may see your investment turning into half just in a day. You don’t lose your valuable money, here are some investment tips for you:
1. DYOR: Do your own search. Don’t invest in any coin if there is a lot of hype for that crypto coin or some blog suggested to buy. Read the roadmap first and see if there is any real-world usage for that cryptocurrency. Who are the competitors? What is offered by the cryptocurrency that you are going to offer that will give it an edge over its competitors. Get to know the team behind that particular cryptocurrency. Only after satisfaction, invest in that cryptocurrency.
2. Hold on to your investment: As I said before that the crypto market is extremely volatile. 5-10% up or down is considered normal. Don’t worry if you see your investment going down by that much. The crypto market always recovers and recovers fast. Just hold on to your investments and you will earn. Don’t sell your cryptocurrencies after seeing them going down by 10-20%.
3. Stay away from ICOs and prelaunch offers: ICOs or pre-launch offers are not bad. It’s just that being a newbie it may be difficult for you to find the right ICOs to invest in. There have been many scams through ICOs and pre-launch offers. Newbies should stay away from them.
4. Invest in solid cryptocurrencies: There are already many cryptocurrencies that are trading much below their deserved price. You can find some of these cryptocurrencies here. Investing in already established cryptocurrencies will save you from fraudulent projects. The gains may be slower than low market capitalization cryptocurrencies but still, it’s good for new crypto investors.
5. Buy the dip: You should never invest all of your money in one go. Invest 50% of your planned investment first and then keep on investing 10% on every dip. This is the rule I am following. This will make your buying price lower and you will enjoy better returns.
So did you like the tips? Tell us in the comment box.