Investing in cryptocurrencies is the new norm for the gen-z and even the old guard is taking notice and hopping onto the bandwagon. No other industry in history has made so many millionaires and changed lives in such a short period of time as the cryptocurrency industry has. While it is not possible that every investor in cryptocurrencies becomes a millionaire, the possibility that anyone can bring some positive changes to their living standard and use crypto as a secondary mode of income, profit-making, or as a passive income source. But not every investor in the crypto world makes huge amounts of profits and has been seen in the past that many investors enter the crypto market and soon get rekt. So what is that you as an investor can do that would help you secure a profit in the crypto market? Well the answer is not that simple, rather investing in cryptocurrencies might be simple but making a profit is not as simple as it seems to many. In this article, we will tell you everything there is about the things to avoid in the crypto market and cryptocurrency investing tips to help you secure and check your profits.
Things To Avoid In The Cryptocurrency Market
The most important thing to keep in mind while investing in cryptocurrencies is not what you should be doing, but the things that you should be avoiding while making your way through the market. Some of the most common things to avoid in the crypto market are as follows:
- Believing in Miracles: While it is true that many people have made insane amounts of money from investing in cryptocurrencies. It is important to understand that they are the exceptions and not the norm. Do not go into the crypto market believing that you will have overnight success and play your cards in a well-thought-out manner.
- Do Not FOMO: One of the most important things to avoid is to not FOMO(Fear Of Missing Out). Every one of us in the past might have heard of some token in the past that made insane amounts of gains for its holders. And we must have thought that if only we had invested in it maybe we will also share in the riches. But this is exactly what should be avoided and no one should invest because of FOMO.
- Investing More Than You Can Afford To Lose: The biggest mistake people make in the crypto market is investing more than they can afford to lose. Crypto markets are highly unregulated and much more volatile in nature than other conventional markets. Thus, one should only invest what they can afford to lose and not go all in because that is a sure-shot way to get liquidated and lose all your investments.
- Listening To Only One Side Of Opinions: Most of us retail investors in the crypto markets get their investing information from Youtube channels, Twitter, Discord Channels, Influencers, etc. The trouble here is that while they can be helpful, they can also be severely one-sided in nature. Most of the time these communities are one-sided and will show you dreams of making it to the moon. This is to be avoided and always keep an open mind about the other side of the arguments and not dismiss them as simple FUD.
- Buying High And Selling Low: This might sound like a very basic piece of advice, but a majority of the retail investors in cryptocurrencies end up doing exactly this. They end up chasing pumps and buy high and sell low while making losses. So, it is important to never chase pumps and try to pick your entries at the bottoms.
- Investing Only In Meme Tokens: Many meme tokens such as Dogecoin, Shiba Inu, Floki Inu, Baby DogeCoin, etc. have been successful and made a lot of profits. There have been many more meme tokens that have caused a lot of pain to the investors and some of them have been straight-up rug pulls such as the Squid Games token.
Tips To Help You Secure A Profit In Cryptocurrencies
Now that we are aware of all the major things to avoid while investing in cryptocurrencies, the most important thing to learn now is to understand the things that you should be doing while investing. If an investor follows these tips, there is a high chance that they would be profitable in the crypto market. You should keep in mind that this is not a piece of financial advice, rather it is just for educational purposes.
- Do Your Own Research: This might sound like a broken record, but it is the most helpful tip. It is important to do your research before investing in any cryptocurrency and learn everything there is you can about it and the things it can do.
- Never FOMO: Again, a basic piece of advice but it is easier said than done. Even the most experienced investors and traders end up FOMO’ing into a cryptocurrency token or other. So, even if you have to FOMO, always make sure that you do not go all in.
- Have A Clear Strategy: This is crucial to making profits in the crypto world. Having a clear investment strategy is the key to making constant and healthy profits in the crypto world. One can not freestyle their crypto investing habits and make consistent profits.
How To Check Your Profits
You’ve now already learned all the tools and tips to help you secure profit in the crypto markets. The next thing is to learn how to check your profits and track your portfolios before and after investing in any cryptocurrency. One of the best tools to do so that is available to users for free is the CoinStats Portfolio Tracker. Here you can link almost all your portfolios together and track their progress in real-time. On top of that, users can also use the CoinStats Crypto Profit Calculator before or after making an investment in any of the cryptocurrencies. The Crypto Profit Calculator is very easy to use and you can simply use it to make an informed decision and find your entry and exit points while making investment decisions.
The process of making investments in cryptocurrencies and making profits is not rocket science but it is not as easy as eating a pie either. And the CoinStats Portfolio Tracker and the CoinStats Crypto Profit Calculator are your most powerful friends and tools in your investment journey and ensure that you achieve your investment goals.