A new year marks a new beginning if you are New to crypto trading. 2021 was a quite favorable year for cryptocurrency. This year recorded the highest crypto investments so far. Also, several cryptocurrencies attained their all-time highest price value.
Dogecoin that was created in 2013 as a joke increased to 100 times its initial price. During the first quarter of 2021, the value of the coin exploded amazingly. Moreover, in 2022, the doge to INR price value is expected to reach 117.83 INR.
Gladly, experts believe that rising investments in the crypto space are likely to witness an upsurge in coming years as well. If you are a beginner thinking about getting your hands on cryptocurrency trading, now is the right time. Here are the top five crypto investment tips to get you started if you are New to crypto trading.
#1. Trade with a clear strategy:
The right mindset and clear strategy are way too important for beginners to stake their money. The Crypto market is highly volatile and always carries some amount of risk. But if you are prepared and have a clear strategy in place, you can easily minimize the underlying risk. Understand your risk appetite, research the market conditions, and avoid showing too much haste. Patiently strategize your actions and have a clear plan in your mind – this best approach to enter the crypto market.
#2. Start with minimal investment: New to crypto trading
A lot of uncertainty looms over the crypto market. Especially, if you are a beginner, there is a possibility you will lose. Therefore, it is always advisable to begin with minimal investment. Invest what you can afford to lose. Maybe a play to earn cryptocurrency game could be a good idea for a start in the crypto world.
However, with practice, you will eventually improve over time. Thus, you can begin increasing your investment amount steadily with time.
#3. Choose the right cryptocurrency:
Selecting a virtual currency that has good potential is very important. Here are the key aspects you need to look for when selecting a cryptocurrency:
- Technology – simple and easy to use UI, quick transactions.
- Infrastructure – funding, virtual private network, app development, cloud storage.
- Rising demand – increasing popularity among people, wide-scale usage, and media coverage.
- Development team – solid network, a team of skilled and experienced developers.
An ideal cryptocurrency should fulfill at least three of these aspects. Plus, it should have high to medium daily trading volume.
#4. Have an exit strategy in place:
Generally, investors buy crypto coins when they speculate the price to be low. And once it appears to rise, they look for the right time to exit the trade. Holding it until the end is not a wise decision. The ideal time to leave trade is when the price of a coin begins to grow too high and investors are sweeping away in a frenzy. If you think that the price of a coin seems to have no space for growth, it is better to exit the position.
#5. Stay Updated with Crypto news:
If you want to earn consistent profits, then make sure to stay updated with crypto market news. This will help you stay acquainted with market ups and downs. Several events like the ban of cryptocurrency in a prominent geographic region or hacking of a crypto exchange can decline the price of crypto massively. Alternatively, an announcement on crypto regulation or increase in value of Ripple price in INR equivalent may trigger price rise.
Hence, always stay aware and updated with the recent happenings in the crypto world.