People all over the world are sharing stories about how they earned money with cryptocurrency and turned their lives around.
Want to know how?
Here are some tips.
1. HODL the best coins
Most successful investors have at least one of the TOP coins. These coins are the ones with the highest market caps, trading volume and, in some instances, price.
Investing in a TOP coin is a good decision because these coins tend to be the most liquid in the industry. Liquidity results in less volatility and lower chances of market manipulation.
These coins are usually the ones that increase their long term value, which is why you should hold them. Of course, there are other factors to consider, for example, total/circulating supply, long-term prospects and so on.
2. Invest 15% of the money into smaller coins
Trading a small amount of low market cap coins can be the fastest way to earn money in crypto. However, this isn’t advised to newer investors, since these coins can be dangerous.
As the market cap, volume and liquidity of these coins are much smaller, many fraudsters use them to gain quick money. Even if the coin isn’t involved in scams, it’s future prospects are still questionable. Hence, investing large sums of money into small coins wouldn’t be wise.
However, small coins grow the fastest and since the investment risks are very high, the profits are too. For experienced investors, this can be a great place to make profits. 15% of your investment money is enough to work with risky assets. There are many small market cap coins on the market like Bluecoin, Horizon or Grine, you just have to choose which one interests you more.
3. Keep your investments safe
This is the most important crypto trading advice you’ll ever receive. Secure storage of your crypto assets is crucial and you should always keep that in mind.
Hardware wallets will be your best friend when investing in crypto. These wallets are, of course, not free. However, hardware wallets can’t be hacked in any way, your information isn’t accessible to any company and you can keep multiple crypto coins in one wallet.
For day traders it is better to use hot wallets (those that have access to the Internet) to trade but you should still keep most of your funds somewhere secure. Hot wallets are more accessible and convenient.
If you don’t want to sacrifice either the security or convenience, you can consider using the CoinStats Secure Wallet, which is a fully guaranteed hardware wallet application that ensures easy access and high security.
4. Have a strategy
Last but not least, before trading you should establish the approach that you’ll take. Figure out how much you’re going to trade both the amount of money and time spent.
You should also establish target profits, the exact amount of money that you want to earn from the trade and after which you will leave the market. On the other hand, you need to decide how much money you’re willing to lose before you sell the coins.
This part takes a lot of research and practice to get right. Nonetheless, it is critical for a successful crypto investor. No trader stumbled their way to success, they worked for it.
Overall, crypto is a great way to make money, you just need to understand how. Once you get the grasp, you’ll be unstoppable. If you want to thrive as a crypto investor, always keep track of your coins. If you don’t know how or just want to find an easier way, check out the comprehensive guide on crypto portfolio management.