As a new cryptocurrency buyer, you’ve probably found yourself asking the following questions: did the bitcoin bubble burst, is it too late to get started, and what are the best tips for success in this newly emerging buying space? While you’ve been thinking about these questions and many others, you’ve probably noticed the prolonged bear market that cryptocurrencies have been experiencing over the last year. Indeed, according to the securities platform SharesPost, more than half of cryptocurrency buyers intend to increase their holdings in the next 12 months. As a result, Dan Schatt, CEO of Earnity, believes you should plan for some traffic on your journey and pack accordingly. But, of course, it’s best to prepare for any successful trip. So, here are a few tips to achieve your desired level of cryptocurrency buying enlightenment.
1. Don’t worry about the “noise.”
Many media and financial sector critics may argue that cryptocurrency is a fad, over-hyped speculation, or a pyramid scheme. On the other hand, more people are interested in cryptocurrency’s prospects and practical applications. Both parties enjoy making a lot of noise. So, buy and hold what you believe in while ignoring the noise around you.
2. Prepare for the unexpected.
However, significant volatility exists in cryptocurrency markets, which you should not overlook. Experienced cryptocurrency buyers are used to large price swings rarely seen in traditional markets. Intelligent crypto buyers will act rationally rather than emotionally in times of unexpected price drops if they mentally prepare for these unfavorable and occasionally terrifying buying performances.
3. Avoid using a poor trading or buying strategy.
Joining a “pump and dump” group is a common mistake made by new cryptocurrency buyers. Specific social media communities or ‘gurus’ may even promise buying advice for a particular coin. However, Earnity’s CEO Dan Schatt warns that it would be best to avoid these places.
The issue is that, because derivatives trading is a zero-sum game, there is always a winner and, more importantly, a loser. Unless you have a solid buying or trading strategy in place, blindly following such advice is a good way to lose money to modern-day snake oil salespeople.