3 SECRETS ABOUT CRYPTOCURRENCY INVESTMENT

When it comes to investing in cryptocurrencies, there are some things that don’t get discussed nearly enough. These things can either help grow and scale your cryptocurrency portfolio, or they could lead you to financial ruin and frustration. Due to the huge amount of content that is posted about cryptocurrencies on a daily basis, it can be hard of the best of times to hone in on the most important developments and cut through the noise.

So in this guide, we are going to cover the secrets of cryptocurrency investing that no one else is talking about, and leave you with the most up to date information and strategies to make your venture a success.

Don’t Focus On A Coin’s Absolute Price

When it comes to investing, the two most important ideas to keep in mind is that past performance is not indicative of future performance, the sunk cost fallacy, and to look for positive future value. The theme of all 3 of these ideas is to not take out the profits you have made from your crypto portfolio.

In fact, there are only a few rare exceptions for you to be taking the money you earned from your investments, with being centered around a change of circumstance of the market. One could be that the amount of money that you are worth has changed and you have too many high risk cryptocurrencies. A good rule of thumb is that you should only have between 10% and 20% of your disposable income invested in these ventures, otherwise you are overleveraged.

The Goal Isn’t To Be Right As Often As Possible.

This is something that is sometimes overlooked by the crypto community. Many investors can get their egos involved in the decision making process and become more focused on being right than making profitable decisions.

Although being right can be comforting, finding loopholes in events will make you more money in the long run.

Invest 10-20% Of Your Income In Crypto

A good rule of thumb is that you should only put in between 10-20% of your total income into cryptocurrencies. This number is what is typically left over from paychecks after people have paid their bills. A common strategy of splitting one’s earnings is to put half of that amount into Bitcoin and the other half Ethereum. This will let most people have a hand in the crypto game without exposing themselves to too much risk.