Crypto coins were some of the best-performing asset classes of 2021. Despite their volatility, the percentage of ROI and the rapidly expanding crypto landscape has attracted more investors intending to profit from digital assets’ long-term price growth.
New To Crypto? Investing in crypto is a good way to diversify your portfolio and gain exposure to the relatively large price jumps associated with the asset class. As with more traditional stock and commodity trading, cryptocurrency trading carries its own set of risks. To ensure profitability, and manage the risks associated, here are four important tips;
1. Secure Your Assets
The first thing to consider when investing and storing crypto assets is security. You need a secure crypto wallet that wouldn’t keep you up at night. Cryptocurrencies are much more difficult to store safely than equities or bonds but they provide better investment opportunities than traditional banks. Cryptocurrency exchanges such as VIBRA make purchasing and owning crypto assets relatively simple and secure, but you should also take steps to safeguard your funds.
To begin, check that you are not using an easily-crackable password. It is recommended that you do not use the same password for all of your accounts. Never give out your login information to a third party. Wherever possible, use the two-factor authenticator lock. Cold storage wallets can also be used for storing the bulk of assets in long-term investing. However, even these do not guarantee total security if you do not protect your sensitive wallet details.
2. Take your gains often
With crypto volatility, investors must face the possibility that the price of a cryptocurrency could rise or fall at any time. Profit-taking at regular intervals helps reduce this risk. To define a good crypto profit-taking strategy, investors must understand their reason for trading just like with any other investment. This helps to define entry and exit points.
3. Invest what you can comfortably afford
Invest in the crypto market only what you can afford to lose, just as you would with traditional assets. Cryptocurrencies are highly speculative assets with a significant risk of loss. If you cannot afford to lose the full amount invested, you should refrain from investing. Beginners should generally allocate less of their income to investing than more seasoned crypto experts.
4. Diversify your investments
The best crypto portfolio is a diversified portfolio. There are numerous assets with great prospects in the cryptocurrency market and, a good strategy to minimize your risk is investing in a basket of asset classes. These could be by investing in different coins, NFTs or DeFi projects. When it comes to a volatile market like crypto, you do not want to put all your eggs in one basket.
VIBRA is a multi-asset crypto wallet fitted with an easy-to-use P2P platform for trading. VIBRA enables you to invest in a range of cryptocurrencies and also guides you through your cryptocurrency journey from zero to master. You will learn about cryptocurrency from professionals and crypto experts through the VIBRAin Academy classes while enjoying the wisdom of an active crypto community within the app’s Social feature.
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