Lions, with the recent Luna/ UST crash it may have made many thinking what's the right crypto in invest in? The crypto market is unconventional and factors like sensationalism could play a major role in the growth of a token.
Take for example, the meme coins, a phenomenon which don't provide any utility yet they have the ability to make people rich. How? Because they erupt with the efforts of the community.
Dogecoin for example, is been supported by Elon Musk on many occasions and it's believed that the spike in Dogecoin can be attributed to none other than Elon Musk.
The crypto market is extremely volatile in nature and it has contributed to many investors utilizing it in making a solid stream of passive income.
Risk will always be there while investing in cryptocurrencies but there are some tested ways that could help investors minimize risks and losses.
- Emergency Fund: Crypto being very volatile with the prices fluctuating dramaticaly, having an emergency fund set aside is good in terms of covering unexpected costs.
It's important to have emergency funds before investing in a crypto project. In case no emergency fund in the reserve, one may be forced to sell all of his portfolio in a loss.
Self Education: Educating self before investing is essential. Billions of dollars being stolen in cryptos last year, according to Chainanlysis. Good to have a list of reliable news sources providing crypto information.
**Scrutinizing Investments: ** Investing in crypto based on the fundamentals should be focus instead of the social media debates, influencers or celebrity endorsements.
Think long term, don't take crypto as a get rich scheme.The Right Crypto to Invest: It's good to diversify your investments. If one crypto plummets, you may have other cryptos going up. Crypto market being unpredictable, it's hard to predict which crypto will go up. Good to do a good hand research, read whitepaper and see if the project is innovative enough to be trusted.
Use Trusted Exchanges: Use exchanges that most of the people trust. Investing in crypto, you have have to purchase it and it can be done by buying it form trusted platforms allowing you to exchange your fiat to the crypto that you chose.
One of the basic rule that is recommended by the experts is to invest the amount of money which one can afford to lose. Some say that it should not be more than 5% of your portfolio.
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