Friday, March 2, 2018

Don't Do These Things If You Want To Make Money From Cryptocurrency

Cryptocurrency is easily the hottest thing in the investment world right now. With
prices that can skyrocket in an instant, then drop down low within a few days,
there’s scope to earn a fortune if you play your cards right.

Play your cards wrong, however, and you will end up doing the opposite. While
there are loads of new millionaires born out of the crypto world, there are plenty
of new people entering bankruptcy because of it too.

If it seems like a risky game, that’s because it is. Making money isn’t guaranteed,
but it’s a lot harder to make money when you keep making the same mistakes
over and over again. This isn’t something that’s necessarily confined to crypto
investments - all types of investments carry an element of risk if you do things
wrong! Today, I’m going to talk to you about all of the things you definitely should
NOT be doing if you want to actually make money from cryptocurrency. If you’re
looking for an exciting and fun way to try and make a lot of money, then this article
will be your best friend.

Image via pixabay

Don’t Invest Without Knowledge

It goes without saying that there’s a lot of mystery surrounding this type of investment.
How many of you can honestly say you know what cryptocurrency is? Hardly anyone
has an actual grasp of this subject, which is how mistakes can occur. It’s simple; think
about investing in property for a second here. How successful do you think you’ll be
if you buy a house with no knowledge of the property market? The chances are you
will be the complete opposite of successful and buy something for too much money,
causing you to make a loss. The same applies to the crypto market, and yet more
people are willing to invest in it purely because it’s trendy and they see people making
a fortune. My advice is to read up on all things cryptocurrency before you spend any
money. I am far from an expert on this subject, but there are great resources from the
folks over at Blockgeeks that you may find very useful. Don’t spend a penny unless you
understand what you’re investing in. This will help you find the best things to spend your
money on and mean there’s less chance of losses happening.

Don’t Put All Your Money Into One Cryptocurrency

This is a mistake many people have made in that they’ve invested a lot of their cash in
Bitcoin. Bitcoin is the poster boy of crypto, and everyone was going crazy seeing
how much it grew in value in such a short period. So, loads of people jumped on the
bandwagon and threw their money at Bitcoin. No matter how good something is, it
never makes sense to put all your money in just one thing. Especially in the crypto
world where there are so many other currencies popping up all the time. Instead of
putting all your eggs in one basket, you should spread them out across various
other cryptocurrencies. As it shows on the Obanc website, many cryptocurrency
exchanges have hundreds of different options for you. To make things even better,
a lot of the new options out there are extremely cheap, meaning they’re less of a
risk to invest in. By spreading your worth, you have more chance of making money,
and less chance of losing it all.

Image via Max Pixel

Don’t Panic Buy Or Panic Sell

When you panic, you make bad decisions; it’s as simple as that. In all areas of life,
if you’re in a state of panic, you don’t think clearly, and you make the wrong move.
So many people make the mistake of panic buying or selling their cryptocurrency. You
may see that the price of something has suddenly dropped, which leads you to panic
thinking you need to get your hands on it right away while it’s cheap. In reality, you
could buy some cryptocurrency that’s only heading in one direction; down. So, you
may have got some for a low price, but that price will keep getting cheaper and
cheaper, resulting in a loss. Similarly, you may own cryptocurrency that suddenly
goes up in value, or might go down. Again, the panic sets in when it drops as you
think this is the end. So, you sell, only for your cryptocurrency to go back up in value
the next day. Realistically, this mixes in with the first point about having knowledge of
the market. If you know what you’re doing, you can follow trends and make more
informed decisions. What you definitely shouldn’t do is make a decision on whether to
buy/sell when something drastic happens, and you panic.

Image via Max Pixel

Don’t Expect To Make Money Instantly

Finally, I think a mistake people make is they assume trading cryptocurrency will make
money instantly. They assume you can spend a day trading different currencies and
walk away with a fat profit in your pocket. The reality is that patience is a virtue in this
world, much like most other investment opportunities out there. I mean, look at all the
people who made loads of money via Bitcoin. Some of them held onto their investment
for years and years, while most of the newcomers made money over the course of
twelve months. It’s rare to walk away with a profit after a day or two, and it’s risky to
assume you’ll make money this way. As such, if you’re looking for ways to get rich quick,
and make a lot of money instantly, then this isn’t the idea for you. Think about other things
like taking online surveys or starting your own freelance business. Both these ideas will
help bring in a regular source of income, which means you can make money fast.

Making money from cryptocurrency investments is a lot easier when you know what you
shouldn't do. Avoid making common mistakes, and you’ll soon clear a path to success.
Can you make money from this type of investment? Absolutely. In fact, you can make an
utter fortune, but only if you play your cards right!

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