CRYPTO INVESTMENT TIPS: WHY YOUR INVESTMENT IS YET TO BE PROFITABLE.
A lot of folks investing in the cryptocurrency have many tales to tell, which range from falling a victim to BTC scams or losing their funds or constantly missing the dips.
The stories are unending, as more people jump into it, we will keep hearing these grim tales of unachieved expectation of investors.
Most crypto investors are losing their hard-earned money rather than earning more.
So, to be on the winning side here is what you need to do before investing in Cryptocurrency;
- Take Time to Study it:
like every investment you need to carry out due diligence, by doing your research, don’t jump into it. Try to understand the basics, the risks involved, how to manage the risks, and the market mechanics.
2. Don’t be carried away by people’s testimonies:
most of these overnight success is a lie, though there are exceptions. Most times whenever I hear such, I overlook the obvious and focus on the nuances by asking what is the playbook, if the story is based on a mere act of luck, instantly I will lose interest. So, if you come across a tweet where someone claimed to become a millionaire overnight, don’t be swayed by the story to the extent of investing your savings into cryptocurrency, which might be the beginning of your financial hardship. So, accept that it’s a lie until it is proved otherwise.
3. Risk Appetite check:
Every investor needs to know his or her risk appetite. By risk appetite, I mean how much you are willing to lose to earn. Your risk appetite will inform your risk exposure and investment strategy.
Making you more Profitable.
Ok here is how; in cryptocurrency investment, the secret of becoming a profitable investor is patience.
And this is what many losers lack, actually it is a psychological thing. Because the moment you are trapped in a trade, and your funds are losing value normally you will panic and exit your position, which will make you lose your money.
But, if you have factored your risk appetite before venturing into cryptocurrency investment, whatever is happening in the market will not make you panic.
4. Design your trading and investment System:
The system first before strategy, because the system gives structure to your strategy. I know few of us will understand this, but in my next article, I will explain in details the difference between strategy and system.
Anyway, you need a system that will pre-inform your investment playbook, which is your strategy.
Your investment system will consist but not limited to rules of engagement, investment patterns, assets preferences, your risk-reward ratio, preferred trading strategies, diversification and risk hedging plan, and many more factors. Remember, an investment system is not something you come up, on a whim, rather it is a product of thorough research, critical thinking and sound logic.
To do this you need to look at what makes successful investors profitable, then design a simple system and back-test the system for 3 months to see how profitable the system is or to debug the weak link of the system.
5. Design a strategy and stick to it.
6. Convert 50% of your profit into real investment (traditional investment like real estate, buying insurance policies, investing in Agriculture or starting a new business)
then set outside 30% to buy the dip, and reinvest 20% to increase your initial investment funds. That 30% is very important because it will increase your profitability exponential.
7. Explore other crypto-investment opportunities like savings, staking, liquidity mining, ICO and OTC trading.
The take is if you stick to these simple tips, you will experience a total around in your investment. To learn more, I have created an Investment club where I help investors to become profitable. You can join this club by clicking on the link:
