2017 has been a very good year for cryptocurrencies with some assets growing value over 30,000% times and some investors going home with their initial investments growing several thousand folds. Nevertheless, some investors also ended the year with losses in their investments. The best tip for crypto traders and investors for 2018 is HODL. Here are some other tips for this new year.
Diversify your Investment
The 1st tip for crypto traders and investors is don’t get too attached to one coin. The crypto space is highly unpredictable ut very competitive, it is therefore, wise to diversify your investment across various coins as no single coin can guarantee 100% success within this space. Who would have expected a year ago that Ripple will occupy second market capitalization spot with over $120 B market cap? Or that ADA could gear up, pass Litecoin and is now threatening BCH?
Make a plan
Many crypto investors/traders get on board without a plan. Though the best advice is to HODL, if you want to trade, a plan such as when to sell, how to sell and when to buy back should be made before taking such moves.
Many investors invest in a coin and due to their urge to make the profit or FUD (fear uncertainty and doubt), they sell for pennies with the hope of a buyback at a dip which they never realise.Therefore making a plan is the second tip for crypto traders and investors from us.
Do your own research
3rd tip for crypto traders and investors is do your homework. Many investors/traders get tricked either by fake news or hype about coins which provide no useful value in the space. In fact, the highest value some ICO’s provide is just a handful of social media promoters who hype them. Given the optimistic behaviour of crypto investors, a new investor might get influenced into investing in a coin without carrying out their own research on the coin.
Beware of scams
Given the rise in ICO scams and phishing emails, we advise investors to watch out before investing, sending private keys or clicking on suspicious links.
Fraudsters are currently using names of influential personalities to draw attention to their ICO’s while others pretend to be employees of crypto exchanges and ask for private keys to help newbies with crypto exchange transfer problems. Another form of fraud which is on the rise is fraudsters trading tokens outside exchanges. Beware because most of the times, you are dealing with a fraudster.
Undermining low priced/low market cap coins.
Market capitalization doesn’t give complete information about how good or successful a coin is neither does the price. Neglecting low priced and/or low market cap coins is a mistake most new investors run into. LTC, BTC, ETH and some other top 10 coins seem to be the coins with the highest long-term potentials, but this doesn’t mean there aren’t interesting projects on the top 100 list of coins.
If you are investing with a limited budget, some of these low priced, small market cap altcoins can provide you with the highest return on investment. Ripple was less than $0.006 in January of 2017 but is now worth more than $3.60.
Final and most important tip for crypto traders and investors is HODL. Patience is the key. Those who hold generally benefit the most and reap the most return on their investment. Don’t invest with the expectation to see your investment grow overnight because this will have you sell for pennies and eventually miss out.
Bitcoin, Ripple, and other successful coins took years to get where they currently are. Therefore, only invest what you are ready to lose and be patient while it grows. In a 1 year period (1-1-2017 to 1-1-2018) those who held the following coins saw the following increase in their coins: Ripple 36,000 %, Ethereum 9,000 %, Litecoin 5,000% among others.
What are your thoughts on these tips for crypto traders and investors? Do you think we missed any other tip?
Let us know in the comment section below.
Please NOTE: Do your own research before investing in any coin.