Crypto investments are on the rise around the globe. The entry of credible partners in the digital currency space, increasing market caps, and the clear growth prospective of blockchain technology account for the primary growth factors in the crypto-space.
Cryptocurrency’s growing popularity and reliability can also be attributed to secure cryptocurrency exchange platforms such as Your Friendly Crypto Exchange.
The rise in crypto approval explains why more investors choose to use cryptocurrencies as their preferred investment mode. Success in cryptocurrency investment requires an investor to establish and stick to a set of guiding principles to stay focused on what matters most.
The steps to take are simple:
- Find a proper definition of crypto assets.
- Tailor the selected portfolio of cryptocurrencies to your risk profile.
- Monitor cryptocurrencies closely to ensure no loss in value over time to avoid unnecessary risk.
- Find a suitable source of information and keep educating yourself.
Principle 1: Proper Definition of Cryptoassets
Successful investment in cryptocurrency requires clarity on the definition and knowledge about the regulations of assets.
At the moment, many different currencies are deployed, which the developers define as cryptocurrencies. For instance, Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Ethereum Classic, ZCash, Stellar Lumen are all considered cryptocurrencies, with more types being created regularly.
Therefore, you need to differentiate between cryptocurrencies and other types of digital assets and have a clear vision of your investments. If you’re still very new to it all, our Crypto Fundamentals series can help you learn the ropes.
On the IXFI platform, we have hundreds of coins and pairs to choose from, so see the options for yourself here.
Principle 2: Matching Cryptocurrency to Investor’s Risk Portfolio
Another principle you need to hold for success in cryptocurrency investment is to align your portfolio with your risk profile. Different cryptocurrencies have different risk profiles based on the trends in the market.
On each day, different cryptocurrencies have varying profit and loss margins in their values, and you need to capitalize on daily and long-term gains.
In case you have a larger risk profile, you can choose to invest in cryptocurrencies that appear to develop losses in the present but appear to have a potential for big profits in the long term.
Contrariwise, if you choose to play it safe, you can only trade in cryptocurrencies that have made profits over the day and wait for another day that there will be gains for you to make trades. This is called day trading and many investors prefer this strategy, although it requires skill and experience as well as more effort.
Long-term positions can also work well if you are risk aversive. Whatever your risk portfolio looks like, you can use the IXFI Wallet to buy cryptocurrencies without worries.
Principle 3: Close Monitoring of Cryptocurrencies
Choosing a coin isn’t enough. You will need to have a close look at all the major cryptocurrencies regularly to determine the gains and losses that are made from day to day.
The IXFI platform provides you with all this information and will update the prices, change in value in real-time over the last 24 hours, and market capitalization for all the major cryptocurrencies.
Of course, you need to master your emotional intelligence and avoid jumping on or off a position based on short-term moves. Learning how cryptocurrencies work is the biggest factor contributing to your success in crypto investing.
Principle 4: Get the Right Cryptocurrency Information
Where you source your information is just as important as the information itself. It’s important that whatever platform, program or service you use has your best interest at heart.
Of course, another good idea is to have multiple sources of crypto insight and not rely on just one that may be incomplete, biased or limited in scope.
Also, take caution not to get advice from con artists and inexperienced parties, as both are numerous in the world of cryptocurrencies. The best advice on cryptocurrencies is acquired from reliable websites, courses, services and programs.
At IXFI we offer the necessary resources for inexperienced as well as experienced traders. Our blog has a plethora of articles that will help give you the latest information. IXFI Academy will also put essential educational tools in the hands of our users, from webinars and expert panels to courses and guides.
The most important thing is to constantly improve your crypto knowledge and stay up to date with the latest trends and industry developments.
Parting Shot
To be a successful cryptocurrency investor, simply find, define and, most importantly, stick to your guiding principles.
You will need to have accurate knowledge of genuine cryptocurrencies and have your unique risk profile. Also, closely monitor progress on different cryptocurrencies, and arm yourself with the right information required for decision making. Ultimately, you will only be successful as an investor if you are principled and patient.
If you’re ready to delve into the vast world of cryptocurrencies, make sure you choose the right platform to support your investments and provide the most suitable experience. Register on Your Friendly Crypto Exchange and start your unique journey now.
Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.
Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.
