First time investors can often get excited about the prospect of sharp price rises in the crypto market and their chance to make some serious profits. There is nothing to say that this cannot happen of course, especially given what we have seen in the past 12 months. It is critical however that investors are getting their information and making investments from the right places, and for the right reasons. Experts likehave warned of many risks which could exist without a solid strategy. If you are seeking to make investments, here is what should sway those decisions.
Deciphering Between The Experts
One of the best places where you can get information about new coins, potential investment opportunities and general information about crypto, is Twitter. There are two kinds of experts on this social media platform, those who have a good idea and those who do not, so how do you decipher between the two? The best way to do this is to focus on how many followers they have, and what other users are saying in the comments. A faux expert will quickly get called out in the comments section.
The Market Movements
Movements inside the market can be a factor in your decision here, but it is important to treat this in the right way. If you are waiting to get in on a coin but the price is too high, you can certainly wait for a dip and then get in. Conversely if your coins are rising in price but it is a sudden increase, you may want to think about cashing out, and taking some profits. What you should never do however is sell in a panic when the price is dumping or buy when the price is pumping. If you don’t feel confident then simply ignore the market and stay in the game for the long term.
Even if you are following the best experts online, it is always most important that you are conducting your own research each time that you invest or sell. This research should see you study a range of expert opinions, historical data for the coin and learning more about the project behind the coin. For example ADA has been a good investment for sometime, because it is yet to really get up and running. It may be that you spot the date for the launch of smart contracts and based on what you have seen and read, get involved with it before that date comes around. Your own research is always the best way to decipher what to invest in and when. In this regard experts are really only there to point you in the right direction.
If you are in any doubt about investing in crypto or you are too scared about what may happen, the best bet is to sit this one out. Investing in such a volatile market without absolute confidence is a poor idea and one which you should certainly avoid.