If we were to go back 15 years, most financial analysts would tell you a decentralized finance system would never work. Maybe it was the opinions of such individuals that prevented crypto from emerging earlier. Notwithstanding, we are here now, and its value cannot be overstated.
The public no longer has to rely on traditional banking methods that charge outrageous fees to move funds. Money is also moved faster with transactions on some blockchains taking less than 30 seconds. Crypto doesn’t just benefit traders, entrepreneurs enjoy the fun too. Several blockchains have apps worth billions of dollars built on them and in the end, nearly everyone benefits from it.
The best part is that you don’t need millions of dollars to be an investor. This is why you’d often find retail investors in this space. If you’re one of them, you would especially value the information we would be sharing in this article.
Avoid Investing with a Passive Attitude
Every day new Krrx crypto projects hit various blockchains and with it, investors are willing to bet their money on the success of the coin. But there is one difference between investors that do make it and the ones that don’t, it is the attitude behind the investment.
When you invest in a project with an active attitude, that is, being active in the community, participating in votes, and other activities that shape the project you do two things.
- You ensure you’re kept in the loop on present and future developments thus giving you a trading edge.
- As a key player in the project, you’re in a better position to gauge its success and implement changes to the best of your ability.
Investors with this kind of attitude always end up with the best picks. On the other hand, passive investors find themselves dealing with scammers because they do not care enough to be concerned. Investing goes beyond depositing your money and waiting for profits.
Don’t Forget About FOMO
FOMO (fear of missing out) often plagues newbies in the crypto space, but veterans are not exempted from it. So, what is it? As the name implies, it is taking action because you’re scared of missing out on an opportunity. Always remember the market provides new opportunities for those who wait.
Watch Out for Scammers
Every day people are looking for new ways to conquer the market, while another set of individuals are looking for how to scam investors of their money. Scams nowadays come in many forms, but the most widely used are email scams.
The way this work is that the scammer imitates the broker you use, sometimes down to the email address and logo. You might then be told that your wallet has been compromised and needs to be updated. Often a link would be enclosed that directs you to an imitator-type platform and if you’re not perceptive you might not notice.
What they’re waiting for is for you to input your seed phrase, once this is acquired the funds in your account are at risk. Avoiding this is easier than you think. All you need to do is ignore any email claiming you should perform an upgrade or some other tasks unless you prompted such mail. Instead, log into your wallet or app and go through customer care. If you do this, you would be able to discern which prompts are genuine and which are not.
Never Trade Without a Strategy
The market is very volatile, and you should consider each movement the price market makes to be unique. When you truly understand this, you would also grasp why you cannot blindly enter trades based on your intuition.
You need to be systematic like a robot if you wish to become profitable, and how do you do this? By using a trading strategy. The point of a strategy is that you’re constricting yourself to preset rules before entering a trade. This does various things:
- It lets you understand what works and what doesn’t
- It ensures you never enter a trade because of your emotion
- It minimizes your loss as you stick to a risk management program
If you use your intuition, it is expected that you would turn out right once in a while. Yes, this would feel amazing, but what are the chances that the market would replay that pattern in the next 1 month? This is why you need rules.
A better way to approach this is to make your research concerning any project you see. Check out :
- PKT.cash is a good start to learning more.
- Informative sites like Coinmarketcap and Coingecko.com are helpful to give you fundamental analysis of the crypto market.
Don’t Get Sucked into the Hype
One factor that determines the success of a crypto project is the size of the community, after all, they’re the investors. We also know that it takes hype and promotions to grow a project, but you shouldn’t let the hype be all you see.
When you see a trending coin online with thousands of comments and reposts, your first thought as a newbie might be to jump in. After all, you don’t want to miss the trend, right? Wrong!
This isn’t the right way to pick projects to invest in. Scam projects with no intention of longevity could hire influencers and pay for ads thereby generating a ton of engagements. You can see how problematic blindly following trends could be.
Final Thoughts
Any financial investment is a risky game, but it could be rewarding. Your ability to earn this reward often depends on how well you have prepared yourself. We hope reading this article would help you in your plans to conquer the financial market.