Table of Contents
It’s no secret that cryptocurrency is volatile. This has deterred many potential investors from getting involved in the world of cryptocurrency altogether. However, the fact remains that there is money to be made from crypto for those willing to invest the time and effort. Here are some tips for those looking to get started.
1. Do your research before investing:
The first step is to understand the underlying technology behind cryptocurrency i.e. blockchain. Read relevant articles, forums and blog posts to get a feel for why this technology will disrupt industries across the globe. The great thing about trading crypto is that there are no third-party banks involved, empowering you to have true ownership of your digital currency.
2. Only put in what you can afford to lose:
As mentioned above, crypto is volatile and it can be a wild ride. It is risky, which is why many people have either won big or lost it all. As with any investment, diversification is key. Utilizing platforms such as 10CFDs enables you to trade multiple asset types including crypto for better diversification.
3. Long-term goals are key:
Crypto cannot be approached as a short-term game, otherwise, you will lose. Every decision must be based on research and appropriate due diligence. Short-term trading is volatile and a recipe for disaster. The educational resources at 10CFDs can provide guidance on trading principles that will help on your journey.
As touched on earlier, diversification is key to minimizing risk. There are over 1,600 digital coins to invest in, so don’t put all your eggs in one basket. 10CFDs enable you to invest and trade not only crypto, but forex, CFDs and more to help diversify your portfolio.
5. Watch your profit and loss closely:
As with any investment, you should aim to buy low and sell high with crypto. The crypto market moves quickly so always pay attention as it will impact your overall position dramatically.
If you think you’re ready to get started, jump onto 10CFDs and start your trading journey today.