A Beginners Guide to Cryptocurrency Investing

[EasyMoney]

Should these investments be long or short-term?


Similar to the choice of coin, the length of investment is personal preference. Be sure that you know which you are looking to do prior to buying a coin. Bitcoin, for example, would be seen as more of a long-term investment with the current holdings of the coin as well as the price fluctuation. A coin recently introduced to the market with significant backing and recognition could be both short and long term. Regardless of which you're looking for, always understand and recognize whether you want to make a quick buck or a long hold prior to spending the money.

A lot of people have been discussing the dynamics of initial coin offerings. I, along with many other members, feel that they are a bit of a fishy way for individuals to make millions overnight. A lot of these coins have literally nothing going for them technically speaking; however, people spend millions upon millions of dollars investing into the start-up (more or less) of the coin. If you are going to purchase coins right off the bat with an ICO, I would recommend having it be a short-term investment. Buy low and sell high. Get out before the bubble bursts.

When should you invest?


There is not always a perfect time to invest. Certain coins, ethereum and bitcoin mainly, can always be invested into. Some project both currencies to continue to move upward on the scale of value; thus, you can invest whenever you see fit. I would recommend entering the market on a crash or a serious drop of the more stable coins. When BTC and ETH drop, pretty much all of the other coins will drop thereafter. This would be a perfect time to start investing as you are entering the market at one of the lowest points of value for the coins.

If you are not certain on when a drop has occurred, do some research and look around. You will probably notice members on here posting things like “__ dropped to $!! Should I sell??”. When these sort of threads start coming out, it is likely that the drop has been hitting. I personally go to Poloniex and monitor the charts whenever I have free-time. This monitoring will make sure that you are one of the first people to cash in on the big drop.



Above chart discussion.


The above image demonstrates a couple of different factors that a new investor should look out for. First thing is first; the drops that are occurring tend to always bounce back with valuation higher than the initial one. Additionally, make sure that you genuinely research the reason behind drops. If something has occurred with the technology or the company that has caused the drop, it is possible that the currency will not bounce back and gain financial ground again. Always make sure that the decisions you are making come from a basis and from some knowledge regarding the product. Just because a drop has happened does NOT mean that you should definitely buy into the product and profit off of the next surge.

EasyMoney Reviewed by EasyMoney on 9th Oct 2017. A Beginners Guide to Cryptocurrency Investing https://i.imgur.com/TjSP7gc.png Introduction Prior to reading the entirety of this thread, I find it imperative that you understand that you SHOULD NOT get your sole stream of information through myself nor any other members. Do not simply purchase a coin because someone on a forum claims that it will skyrocket and will be a good investment in the near future. With that being said, this thread has been organized in order to inform the newer members in the world of cryptocurrencies. This Rating: 5