Have you fallen for the crypto hype? Do you also want to feel the success of Bitcoin koers and do you also want to invest in cryptocurrencies? Then here are 6 tips that can help you get the most out of your investments, but also help you avoid drama.
Spread your wealth
Never bet on one horse so never bet all your money on one and the same thing, certainly not when it comes to new cryptocurrencies or an ICO. Because any new cryptocurrency can, in fact, become the new Bitcoin. It would not be nice if the IOTA suddenly became worth € 100 each, while you have bet € 1,000 on Ripple. Then it would have been wiser to divide that € 1,000 evenly between Ripple, IOTA, Reddcoin, Navcoin and DogeCoin (to name just a few examples) when investing in crypto via Bitvavo.
Know the risks
Investing in general is risky, so is investing in cryptocurrencies. Although there is actually no traditional investing, we can say that investing in cryptocurrencies turned out to be very lucrative. However, the tide could turn quickly. Just one change can be enough to even drop Bitcoin to € 10 each. It’s a shame if you just got in for € 18,000.
Make sure you are clear in advance what your goals are. Make agreements with yourself about this. Are you going to invest a total of € 5,000 on cryptocurrencies or do you want to achieve a certain profit? What do you do when the goal is achieved? Make sure you can take steps for yourself and give meaning to your crypto adventure. In the heat of the moment when you stand on a huge profit, it is often not so easy to say goodbye to your investments. You may then be blinded by the increases and want to collect more and more profit, while it is just wise to take a large part of the profit off the table.
Don’t be guided by fear
In the investment world you see a lot that people are guided by fear. When the dollar collapsed after Trump became president of America, many people panicked. They sold stocks, indices and commodities at rock bottom prices. A little later the stock market had already fully recovered, but these people had lost a lot of money. Is something drastic happening? Then let it go. You are too late anyway. Waiting is best in 9 out of 10 cases.
Give it time
In other words, give it time. It took Bitcoin ten years to reach € 15,000. Most altcoins have only been around for a few years or less. Be aware of this. The best thing is to invest your money and then let it go for a while.
Never borrow money
You should never invest with borrowed money. When you get into debt, you keep it for years – and sometimes even for the rest of your life. So only invest with money that you can really afford to lose! All things considered, buying cryptocurrency remains a big gamble.