In our previous article, we shared some suggestions for those who want to invest in the crypto market. Today, in this lesson, we will continue from where we left, so please stay tuned with us to get some more valuable pieces of advice so that you can start trade now .
#1: Understand the importance of market cap in order to judge the profit potential of a project, not just the unit price. Just because a coin or a token is worth one cent does not mean that it will be worth $1,000. Owning a piece of Bitcoin is a valuable investment, but it is not easy to get a whole Bitcoin anymore because they cost thousands of dollars and the price scares some people. But don’t be scared by a big unit price of something like Bitcoin, but also don’t be encouraged by something that’s less than a cent. There are a lot of factors that matter here, like what’s the total supply, who has that total supply – it’s more than just looking for penny cryptos.
#2: Be aware of stable coins and be aware of how to use them. A stable coin is a token that represents a dollar, a British Pound, Gold or another stable asset. These digital tokens are very useful for the volatile crypto market. If you see that the market is going down, then you can sell into a stable coin and rebuy your crypto cheaper at a later time, ass these coins will retain their value in relation to the fiat. But be warned that the market will not always do what you want it to do, and these strategies require a knowledge of the market and an understanding of charts to be able to be used very effectively.
#3: Opportunities come all of the time – be ready to exploit them when they happen. For this, you will need to keep a bit of fiat or perhaps some funds sitting in a stable coin on the side to be readily available to make a purchase. This is another great use for holding on to a stable coin. The reality is that you cannot buy in a market dip if you don’t have any money to buy it with. And on that same note, don’t be afraid to miss opportunities because opportunities come all the time. Try not to panic over things because there will always be another crypto to invest in.
#4: Learn how to dollar cost average on assets that you believe in. Many long-term investors will make regular buys once a week or once every two weeks or once a month because this averages the price over time of what you are buying. So if you buy one Bitcoin for $10,000 today, then one Bitcoin for $5,000 next month, then the average price you paid is $7,500. Doing so can help you get a good average price over time, and removes a lot of the stress of trying to time the best day, in the best hour, to go all in. Almost no one ever calls the bottom or the top perfectly – it’s much more stress-free to average in overtime.