There are several reasons why people invest in cryptocurrency:
•You heard about all the hype around it and didn’t want to miss out.
•People told you about the incredible returns and invited you to take a spin in their Lambo.
•Both of the above.
Now there are exchanges offering hundreds of different coins, tokens, whatever you want to call them — they’re all crypto. Some people will stick to the best known, because that feels safer, while others will be studying the charts of the lesser known coins that may be showing even higher profits.
But, what is the secret of being successful at crypto investing and what should you avoid?
Don’t be fooled by celebrity endorsements
If Madonna takes up hot yoga and you follow her, that’s not so bad, but if she starts talking up a specific cryptocurrency — beware! Most celebrities being used as ‘ambassadors’ for a token are unlikely to know what they are talking about. Don’t forget — they’re being paid to say it’s the best ICO on earth.
Watch out for signs of pump and dump
Whale and dolphin groups tend to emphasise huge profits and ROI. They will encourage you to keep investing and you could ultimately lose a lot of money, even if all seems to go well at first.
Research, research, research
Research until it hurts to research and then research some more. True, there is plenty of money to be made in the crypto space, but the ones who make the most really know what they are doing. Even if those people happen to give the same information to you, they most likely have already made their moves and taken their positions/stakes in something before they have got around to writing about it or informing you. You’ll always be behind their curve. Don’t rely on others — rely only on yourself.