The best advice when it comes to cryptocurrency is to do thorough research. If someone reaches out to you to invest in a platform not in your country, be wary about it and do the due diligence by doing your research on the company and market fluctuations. The market is volatile and constantly changing, so you would have to tweak your investment accordingly.
Also, invest money that you can afford to lose. Do not invest money you need for something like a life necessity, such as rent or utility bills. Carter highlighted: “Due to its dynamic nature and constant changes in cryptocurrency, the market value of your investment can be up a US$1,000 and then go down to just a few dollars in a matter of moments.”
Moreover, it’s helpful to keep track of what crypto influencers are talking about. For instance, if they discuss an announcement from a company that has heavily invested in cryptocurrency, its demand is more likely to go up. So investing a little bit in that particular cryptocurrency might be a smart plan. But it is important to remember that the market is quite volatile, so a tweet, Facebook meme or even a text message could change the market outlook.
Another thing to keep in mind is to invest in a capped cryptocurrency, which means that only a certain amount will be in circulation. So it allows the investor to know how much it is actually worth and how much of it is there in the market. Because if there’s more constantly being made in that market, and there’s no cap, it can dwindle quickly. So, for example, if an extra billion of that cryptocurrency starts circulating in the market, your US$500 would then go down to US$5 because of the share value on it.
Additionally, if you are on the fence about cryptocurrency as an investment, invest in companies making the hardware for cryptocurrency. While that becomes a more traditional form of trading, these companies are well-established and are pioneers in the cryptocurrency market. Therefore, every new advantage or invention that comes out of those companies will see a return on investment.
There is no perfect time as the market is constantly changing. While cryptocurrency has been around for a couple of years, it is only now that it has caught the attention of governments and investors. Since multiple parties are trying to jump on to the bandwagon, it’s causing multiple surges, which, in return, causes increases and decreases very fast. Today, more regulations are forming, and governments are shaping them according to their market needs.
