With the cryptocurrency markets looking very healthy and with the need to invest at an all time high for many of us, we want to take a little bit of time to step back and remind you of some safe investment practices that will help you to become better cryptocurrency investors. In all honesty, when the markets are flying high is is very easy to invest, although just because things look positive, it doesn’t always mean they will stay that way. As a matter of fact, statistically speaking, the longer the markets stay up, the more likely they are to start to retract - please don’t let that trick you into panic buying however.
The first thing to do is to pause and wait out surges. Don’t let FOMO get the better of you, in fact, if you’ve not already bought before the surge, there’s a chance you’ve already missed out anyway. Remember, the aim of this game is to buy when prices are low, and sell when prices are high. Granted, this is the sentiment that does cause the markets to be volatile in these conditions however.
When prices shoot up, people who bought in early start to sell off their cryptocurrency in order to skim off their positive returns. When this happens, price rises start to level off and often, correction occurs. This correction can be relative to the gradient at which the asset climbed, so, if Bitcoin takes a huge leap upwards in a short amount of time, we can expect any correction to also continue on a similar slope, just in an opposite direction.
Remember that this is a risky industry, so if you do choose to invest, only do so if you can afford it. Only invest money that you can afford to lose and always make sure you do your research first. Take the time to learn more about the industry and do what you can to become a better investor.
Our last bit of advice, if you do go ahead and invest and you’re happy you’ve done enough research, always plan out your storage options and future plans. We would recommend only storing your cryptocurrency on an offline wallet to ensure the risk of losing it in an attack or through the failure of an exchange is minimised. You should plan ahead for the future too and take time to watch the markets in order to make predictions about what might happen next. If you do, you’ll be ready to sell back during the next bull run - doing this is a sure fire way to make sure you earn a profit, that’s what we all want at the end of the day right?