Whether investors or traders, the first goal for them to enter the private cryptocurrency market is: profit. Naturally, the higher the profit, the more the number of traders. This form of investment is actually just a basic form of investment in which investors need to have experience and decide at the right time.
Understand the nature of cryptocurrencies
Understanding the nature of the problem is at the core of any job and this is really important when investing in the crypto market. Almost everyone knows this, but to do it, not everyone can do it. Because just knowing the basics is not enough, you must be constantly updated with the latest information because the electronics industry is changing rapidly every hour and minute. So, if you do not deal with a regular frequency or work in the industry, it is easy to ignore the fundamentals.
This new industry contains various complex technical terms and concepts that can be confusing to someone with no in-depth knowledge. Similar to any investor specializing in other fields: bonds, commodities, foreign exchange …, you need to have a familiar understanding of the market in which you are participating.
The fundamental concepts in the crypto market are inherently full of sentiment and volatility. However, once you have accumulated a sufficient amount of knowledge, you can easily reinforce and analyze your market advantage and manage your own risks.
Ignore the hype of PR and Marketing
We are susceptible to storytelling hype along with core directional stories. Beat your fear if you don’t miss the opportunity, the hype of pr marketing can really transform the whole market. As a result, the marketing and public relations (PR) activities that have been increasingly invested in decades have grown.
The many investment incentives such as large pre-sale discounts, offers, promotions … of projects and paid reviews are a common sight in this almost unregulated industry. The media, under the influence of any other force, has “added fuel to the fire”, arousing the curiosity, interest, and excitement of many people. Ignoring hype is really a valuable skill that every successful investor must have to differentiate between a fundamentally good project or just a hoax.
You can ask yourself these questions and try to answer them to solve the problem:
- What are the fundamentals mentioned by project communication potentially implementing? (Consider reasonableness, wholesomeness)
- Qualified development team?
- The issues have not been verified?
Accept to lose 9/10 “bet”
Investing is really just a bet that you have to accept to lose 9/10 of that bet, even all. Cryptocurrencies in particular are an area of extremely high risk because of their immaturity and speculation. You have to accept its risk. However, you can still limit the risk rate by analyzing and evaluating many factors such as the strength of the team, the viability of the project, the ability to achieve the roadmap, the utility of the token …
In addition, it is impossible not to mention scam projects or the Ponzi scheme. If you do not have enough experience, falling into a scam or Ponzi trap is not too strange. Therefore, every trader must practice the spirit of steel in order not to flinch from any other danger.
DYOR – Do your own research
To enter a football field without being sent off, you need to meet certain conditions of fitness and skill. Investment is the same, in addition to owning capital, you need to take the time to do your own research so that you don’t fail.
However, how much is enough? The concept has no limits, but depending on the perception of each individual, for me, when I feel confident enough to analyze and evaluate the objectivity of a project not just stop at a website, a whitepaper. Nowadays, there are many companies that are using influencers, wealthy individuals, or trusted technology leaders to scam. Without delving into the details of a whitepaper, the technical capabilities of the project, or the development team, the risk of losing your money will be great.
Right at the time of this writing, the cryptocurrency market out there is constantly fluctuating. Investors need to grab the opportunity at the right time to bring the highest return.
We hope that the above sharing has helped you gain valuable experience and knowledge. Good luck!