For the last few years cryptocurrencies have been the most discussed financial products on the market. Analysts and pundits have described them as the best investment tool for millennials and compared them to the dot-com boom. In marked contrast to some other investment products cryptos have been compared to, there are also a large number of analysts that believe that cryptos could be a “fad”, although the strength with which they’ve been adopted by governments, retailers and individuals suggests this is a trend that is here to stay.
There is little doubt that cryptos are here for the long haul and will secure their place in the hierarchy of currencies. As with any new and revolutionary concept there will be growing pains.
If you’re one on the many people looking to take advantage of the benefits of cryptos and the possible financial upside here are the top seven practices to follow:
Do not invest more than you can afford
Readers of the TransferGo Blog have no doubt seen our article on foreign currency exchange (FX). While they are a currency, cryptos should be viewed more as a commodity than a currency when it comes to investing. Cryptos are incredibly volatile and your entire investment can potentially disappear overnight. Cryptos are not the place to invest your retirement fund, money you are saving to buy a house or cash needed to pay monthly expenses.
Cryptos are ungoverned
Privacy and a lack of a central bank are among the major allures of cryptos. That lack of a central authority also means your investment can be lost due to bad actors. It also means that potential government action can severely damage the value of your crypto holdings.
Do not be greedy
It’s true that many crypto traders have experienced hundred-fold growth. Set a reasonable goal for your return, such as between 10 – 20%, and stick to it.
Beware of scam artists
Many analysts state that up to 80% of the new cryptos coming to market are outright scams. Before you invest conduct extensive research.
Don’t let FOMO dictate your decision
FOMO, the Fear of Missing Out, has proven to be a major driver of crypto investing. The solid cryptos will survive and continue to provide a steady investment vehicle. Invest based on fact not emotion.
Set realistic investment goals
While many traders have earned millions of dollars, you need to realise that that is unusual. Set realistic goals such using percentages for your expected returns and stick to them.
Work with knowledgeable, experienced companies
Here’s where TransferGo can help with your cryptocurrency needs.
The TransferGo professionals understand the crypto marketplace, the players and the technology. Not only do they take care of the six previous steps mentioned they provide expert advice and guidance for buying and selling your cryptos in an easy to understand and transparent manner.
To find out more about how TransferGo can help you get started in crypto simply download the TransferGo app.