Investing in cryptocurrency is very hot right now, and given the gains we have seen in recent years it is completely understandable. In some cases we have seen crypto coins increase in value by over 1000%, which is exactly why so many are looking to get involved. Many of the experts in this field however, people like Robert Testagrossa, have been outspoken in terms of warning people of why they need to be careful. Nobody is saying that you shouldn’t invest, not at all, but there are some important aspects about this world which should always be remembered.
Incredible Volatility
There is absolutely no doubt about the fact that this is the most volatile financial market on the planet, and this is something which you have to be careful about. Your holdings could easily increase and decrease by as much as 15% in a single day, and that can be unnerving for many people. If you are not prepared to go through as much volatility then it may very well be that this is not the market for you.
Investigating Coins
If you are looking to get rich quick from crypto then this is not the best mindset to have and you are in fact likely to lose money as a result. What many do is try to simply invest in coins which they really have no idea about, which is a very dangerous strategy. There are some truly fantastic projects out there which have coins attached to them, and they can in fact make you a good amount of profit. The key however is to make sure that you fully investigate the project and that you know what you are investing in before you part with any of your money. don’t just jump onto trends or invest in what you have seen on Twitter, unless you have a firm idea of what the project is all about.
The Details
Whilst the decentralized nature of crypto currency is one of the biggest benefits of this kind of currency, it is important to remember the weaker sides too, especially regarding security. You must always ensure that you are the only person with the keys to access your wallet. You should also ensure that the wallet is fully secured and that you have multi-layer security. When sending crypto you also should ensure that you re always triple checking the address before you send. If you send to the wrong address or you are the victim of a hack, then you will never see that money again, and nobody will be there to help you.
And finally investing in crypto should be done by people who have a firm idea of what they are looking to gain. This will help you to know what to invest in, how much to invest and when to pull out that investment. Always be sure to stick to your guns and follow your plan, no matter what happens to the price.
