The cryptocurrency market can be quite confusing for investors, not to mention how difficult it might be for a newbie. The volatility of the market can make many lose money instead of getting rich. So what are the golden rules we should follow to avoid a disaster?
Some known facts
With all the options out the: Bitcoin, Litecoin, Cardano, Verge, Ripple etc, making a decision can be difficult. Most investors go from coin to coin and ended up losing money, even if they know the basic rules of how the cryptocurrency market works. The scandal involving the South Korean ban made many investors sell out.
It is hard to predict which digital coin is going to keep rising and which ones will crash.
JP Morgan Chase’s CEO, Jamie Dimon, called Bitcoin a fraud. Afterwards he regretted his statement when the digital coin became popular. He declared for Fox Business that blockchain is real and happening.
Some of the basic things to understand are:
- Wildcards exist: there are always things happening and one of them could crash the cryptocurrency market;
- Governments will regulate them in the future: even if many altcoin, digital coin and blockchain coins allow users to make an anonymous transaction, the Governemnt will interfere soon enough to regulate this volatile market;
- Echanges impose control: Bitcoin listing already exist;
- Diversification is key: Main Street investors know that a mutual trade of crypto funds is beneficial to all of them;
- Study well the market before investing all your savings;
- Invest in several cryptocurrencies. Chances are that you will make more money if you invest in more than one digital coin;
- Keep track of the market: never lose sight of your investment and try to take the best decision given the circumstances.