You Don’t Prepare For Forks
Hard forks are similar to airdrops from a crypto investor’s standpoint – free money! Most investors I know miss out on these opportunities, which can turn out to be quite lucrative.
Bitcoin Cash is an example of a hard fork of Bitcoin, where all Bitcoin holders received 1 Bitcoin Cash for each Bitcoin in their wallet. Bitcoin Cash trades for well over $100 or $200, so these coins you can get for free, aren’t cheap.
Just make sure the wallet you are using support the fork. Simple as that!
Use CoinsCalendar and search for the category ‘hard forks’ to stay up to date.
- How to invest crypto profits
- 40. You Don’t Understand the Market Dynamics
- To invest profits crypto-137
- 27. You Don’t Back Up Your Sensitive Information
- To invest profits crypto-dunger
You Are Emotionally Attached to Your Coins
- To invest profits crypto-pro
- 17. You Don’t Have a Plan that you Stick With
- 20. You Buy High
- 12. You Don’t Diversify Your Portfolio
How to invest crypto profits
You Don’t Stay Clear Headed
Remember to stay calm and relax.
You should have invested an amount you are comfortable losing, so have fun with it. Don’t let the negative press or big news sway you.
If you do let negativity get to you, then you are more likely to make poor decisions.
Disconnect from crypto from time to time to stay clear-headed.
40. You Don’t Understand the Market Dynamics
Bitcoin only makes up about 40-50% of the market’s liquidity.
There are thousands of altcoins, and they work in correlation with Bitcoin.
Not understanding these correlations can lead to poor and costly investment decisions.
“A detailed and technical book… Convincing…” – onlinebookclub.org
“An interesting, thought-provoking book… fascinating…” – The Skeptical Intelligencer
This eye-opening book explains why, contrary to what most people believe, investing in cryptocurrenciesisactually a good idea. In fact, cryptocurrencies are on track to be the best investment opportunity of the 21st century.
Author Peter Bryant (‘the Crypto Prof’) is an experienced, professional investor. He has achieved significant profits by investing in cryptocurrencies and has helped his clients to do the same. Now, he presents his case for trading and investing in cryptos and explains how to do so safely and successfully.
To invest profits crypto-137
One more important tip: do NOT use your daily email address when you navigate the crypto space. Use a separate one dedicated to your cryptocurrency investments.
27. You Don’t Back Up Your Sensitive Information
Always back up both 2FA and wallet data.
If you lose access to your computer and haven’t backed up your private keys, seeds or passphrases, then you won’t be able to access your coins anymore.
Same for exchanges: you’ll be locked out of your accounts if you lost your phone and haven’t kept a safe copy of the 2FA keys.
Wallets and exchanges will often guide you through the process, so make sure to read and follow their instructions carefully.
For 2FA, I recommend you backup your keys so when you get a new phone, you can recover all of your accounts to log in.
To invest profits crypto-dunger
Websites and media you trust will promote a product not because they use it and like it, but because they’ve been paid to promote it.
Sponsored content is fine as long as it is clearly noted that the content is paid for. Many times, sponsored content looks just like non-sponsored content, which can be deceiving.
The most effective change you can make to improve your long term cryptocurrency investment strategy is to read these articles – not just the headlines – and cross-reference opinions. Stay calm and remain skeptical at all times.
You Are Emotionally Attached to Your Coins
Many investors become attached to their investments at an emotional level.
To invest profits crypto-pro
Be sure you keep up to date with all of their developments and price action.
To do this:
- Follow them on social and through their blog
- Join their communication channels (Telegram, Discord)
- Bookmark their websites and Bitcointalk threads
17. You Don’t Have a Plan that you Stick With
Lots of folks let the market highs get to their head. Once their portfolio hits an all-time high, they only want to go higher.
On the other hand, as a coin drops in price, they hold until 0 because they are stubborn about their crypto investments.
The best way to avoid these situations is to set a target, stick with it, and don’t be greedy.
So, when you enter a position, be sure to write down your plan.
If there’s increased demand and a limited supply increase, the price goes up. If supply becomes constrained, price goes up, and vice versa. So, when evaluating a cryptocurrency, the most important questions to answer are how the supply increases, and what will drive demand for the coin higher.
You can answer those questions by reading the white paper that a cryptocurrency team publishes to attract interest in their project.
Look at the roadmap for a project and see if anything could spark an increase in demand. Research the team behind a project and see if they have the skills to execute their vision. Try to find a community of people already investing in the cryptocurrency and gauge their sentiment.
It’s also important to consider how much money has already flowed into a cryptocurrency.
But at the end of the day, the market moves despite how you feel.
Don’t hold a coin you no longer believe in.
You should always ask yourself: “if I had not bought this coin, would I buy this coin right now?”
Be honest with yourself. It’s okay for things to change.
Additionally, if you planned to cut losses at 15%, then do it, no matter how you feel at the time. Don’t rationalize that it will rise – cut your losses and trust the plan.
20. You Buy High
I bet that when Bitcoin was at $15,000 or $20,000, your friends and family were asking you about cryptocurrencies.
That’s because there is a natural tendency for people to follow trends.
It’s wise to diversify your portfolio not only amongst cryptocurrencies, but stocks, bonds, and other assets as well so you should check the 50/25/25 rule.
The stock market is indeed a safer bet than crypto, so if you want to be conservative, put say 15% of your investment funds into crypto. If you hold safe stocks and bonds with the remaining money, then you should be pretty safe.
Disclaimer: we do not know your financial situation, nor are we financial advisors.
The world is your oyster, so don’t be afraid to invest in different markets and niches.
Well, you made it to the end, congratulations we hope that you learned something about a crypto investment strategy that can suit you!
Although there are plenty of mistakes to avoid, most of them are common sense and require no memorization.
After you copy and paste it, always verify the first two characters and the last three characters match your address.
12. You Don’t Diversify Your Portfolio
Your cryptocurrency investment strategy must involve diversification so you need to learn about crypto allocation strategy.
While it may be tempting, don’t put all your eggs in one basket. Every experienced investor hedges, or protects his/her risk by investing in multiple assets.
You might notice some coins correlate where when one goes up, the other goes down.
If this is the case and you like both coins’ futures, then invest in both. Your investment will be much safer.
My recommendation: own a minimum of 5 cryptocurrencies.
Editor’s Note: In light of cryptocurrency’s recent pullback, we’re presenting an updated version of an article Adam originally wrote in November of last year. The message is simple: You should buy and hold… even though it can be hard not to panic-sell during sharp corrections like those we’re seeing today.
Dear Early Investor,
The key to making money in cryptocurrency is simple.
Yes, you need good security too.
But the most important thing is simply being able to hold on during volatile years.
Many are tempted to take profits after they’re up 2X or even 5X. Both would be a mistake (unless you desperately needed the cash).
Let me explain why…
Cryptocurrencies are a (potential) monetary revolution.