Even if you are one of the earliest crypto traders and investors, you need to understand that this industry has evolved drastically. Comparing investing in crypto in 2014 and 2024 is just outright ridiculous, but it doesn’t even take a decade for this field to evolve beyond comparison. With that in mind, here are the top five cryptocurrency tips that are valid in 2024 crypto market conditions.
Contents
1. Look for professional reviews
Big cryptocurrencies (like BTC and ETH) will fluctuate in value, but proportionally, they won’t repeat the success BTC had in 2017. However, by identifying promising crypto that’s currently low in value but projected to scale drastically, you could potentially see significant returns. In other words, the right crypto to invest in could be a game-changer for your portfolio.
You need to understand that you’re not looking for the biggest or necessarily fastest-growing cryptos. These will be on everyone’s radar. What you’re looking for are cryptos that are the most likely to grow, according to experts’ opinions.
Why is this so important?
These experts, unlike the general population, have a deep understanding of how the crypto market actually works. They can identify the relevant factors that access cryptos according to their utility and the niche they inhabit. Their expertise should give you confidence in your investment decisions.
Think of it as copy-trading but with an actual interactive side to it. By delving into these reviews, you’ll start picking up some of the nuances yourself. This will empower you to discern what matters and become more knowledgeable about the crypto market. resilient to mass hysteria every time someone mentions a new cryptocurrency that’s (supposedly) going to be huge.
Overall, finding credible resources and learning who to trust is an inevitable process for any investor.
2. Diversify your portfolio
Diversifying your portfolio usually means investing in assets that belong to different asset classes, but how does one diversify a crypto portfolio? Well, there are a few principles you should abide by.
First, you want to invest in cryptos with various use cases. For instance, you want to keep the majority of your investment money in major tokens like BTC and ETH, but you also want to look at stablecoins, utility coins, meme coins, AI coins, etc. This way, whichever branch goes big, you’re covered, and any losses are limited.
Another thing you want to do is split your investments across different blockchains. Major blockchains are Ethereum, Cardano, and EOS. Now, while Ethereum is, by far, the biggest, it’s worth investing a bit into two of its competitors, as well.
When it comes to utility cryptos, invest in different industries. Just look at the underlying industries. The most promising ones are AR, VR, and AI, as well as decentralized payments. Investing in a token related to these cryptos will always be seen as a good idea.
One of the biggest misconceptions about cryptocurrencies is that, since they’re DeFi, the location of the development team makes no difference. This is clearly not the case, seeing as how some regions are directly hampering crypto development while others are investing in this field.
3. Pick the right exchange platform
The best exchange platforms are often those that get their share of the market early on and then maintain their head start. Well, in the world of crypto, things are never as static. You see, here, the changes are rather dynamic, and you need to learn how to keep up.
Unlike with crypto diversification, it’s really redundant to use more than one exchange platform, so you need to make sure that you choose the right one.
When reading reviews of these exchanges, you want to make sure that they’re up to date. It’s not just that some of the big names would have fallen off; it’s also about the fact that new, emerging exchanges are getting into the game.
The key thing to look for is markets that are great for your device (OS). When reading reviews, make sure to look for those that are well-rated for your device. Also, keep future upgrades in mind. You may have an iPhone now but plan to switch to a Samsung Galaxy S21 Ultra. While this is already a huge migration, you don’t want to have to switch exchanges, as well.
Also, you have to think about the interface. While this may sound insignificant, you’ll look at that homepage more often than you think. This is why you need to find something that feels intuitive. Something you won’t have trouble using (even very early on).
4. Set your investment budget
There’s a thin line between being a realist and being a pessimist. You see, the truth is that while some people became crypto millionaires, there are a lot more of those who lost money that they couldn’t afford to lose on crypto.
So, why don’t you hear these stories?
Well, there are three major reasons for this!
- First, these stories are not that interesting. A success story is far more resounding and makes for far better headlines. Just think about how interesting Rocky’s life would be as a story in a parallel universe where he doesn’t get handpicked by Apollo Creed for his opponent. Sadly, this is a much more common and realistic story.
- Second, people who have lost a lot of money on crypto investments feel ashamed about their decisions. Even though this could have happened to anyone, they would rather not talk about it.
- Third, there’s the concept of positivity bias to think of. You’re more likely to pay attention to a positive story than a negative one. This means that you subconsciously filter which stories you’re noticing.
If a failure can happen to anyone, the only wise thing to do is never to invest more than you can afford to lose.
5. Still mid-to-long term
Day-trading cryptocurrencies is still too chaotic. This is why you want to adopt a different strategy and focus on mid-to-long-term trading. Just think about it, while BTC did explode overnight from the perspective of someone who tuned in during late 2017, for someone who was in the game before that, things didn’t look that way.
After all, in 2017, BTC was nine years old, which means that those who profited the most sat on it for at least a few years.
The key strategy is to identify the technology or the market associated with that crypto, buy, and hold.
Generally speaking, you might want to adopt the strategy either way. There are so many to choose from, ranging from dollar cost average and scalping to traditional strategies like buy and hold.
Either way, having a strategy will give you a system to follow, which will result in a scenario where you facilitate your own learning process and understanding of the industry.
With just a few starting tips, you’ll already be better off than most investors
Ultimately, you need to develop the mindset of a crypto trader. This means learning techniques that you can replicate over and over again instead of hoping to get lucky once. For this, learn how to research, adopt a strategy, diversify your portfolio, and only buy via exchanges you can trust. Most important of all, never trade with money that you can’t afford to lose.
