When cryptocurrency first blew up back in 2017 there were many people who either got on it too late, or who missed out entirely. There has been little surprise therefore that since the price of crypto coins has risen from the end of 2020, those people are once again looking to get involved. Crypto experts like Robert Testagrossa however, are warning people to be careful as to what they are doing. Nobody is saying that crypto is a bad investment, not at all, but there are certainly some things which you should watch out for.
The first thing that everyone should be looking to do is read more about what cryptocurrency is, how the blockchain works and how to safely invest. Whenever we see these sharp rises there are always people who just want to get in on the action, and do so without really knowing what they are doing. If you take this particular approach to crypto investing, you are likely to lose.
Have a Goal in Mind
The best advice for our money is to simply invest and leave it there for the long term, because crypto has a bright future. This however is not financial advice and the reality is that your investments and your time of selling should be based entirely on what you have and what you are looking to gain financially. This should always be the case for investing so decide before you part with your cash, what exactly you are looking to gain.
Alt Coin Chances
Whilst the likes of Bitcoin and Ethereum are great for long term investors and high stakes investors, those who are only investing a small amount should be looking to alt coins to make some solid returns. Whilst these can increase sharply in a short space of time however, everyone should be aware that most of this will eventually crash and burn, or at the very least fizzle out regarding price.
Sell Up, Buy Down
If you do wish to get involved in a little bit of trading then the best advice to follow is buying on the way down and selling on the way up. Unfortunately, crypto is incredibly volatile and that is why so many people get it wrong. What usually happens is that prices go up so people buy out of FOMO, and then the price plunges and people panic sell, this is not the way to make money.
What so many people fail to realize is just how delicate their crypto holdings can be, which is why a secure wallet is critical. There is always a risk of being hacked and beyond this, a scarier risk to be aware of. IF you lose access to your wallet because you lost sensitive keys or the devices which it is registered to, you may lose all of your crypto holdings completely. These will never be actually lost, but you will not be able to access them. Always have copies of all of your details for your crypto holdings.