With the coronavirus pandemic affecting the economy in very disruptive ways, investors are turning to cryptocurrencies to maintain their bottom lines. Indeed, this comes as countries are beginning to regulate crypto markets and bring alternative investment vehicles to the mainstream.
Whether you are a musician looking for a breakthrough or a student looking to invest in something that could help communities, there’s a lot you need to learn about cryptocurrencies. After all, it’s a new thing and you need to know exactly how to make the most out of your capital.
Let’s take a look at a few essential tips to guide you through the world of cryptocurrency investing in LA.
- Be rational
The hype surrounding cryptocurrencies is probably the reason why you want to dive in. It happens, but one thing’s for sure, investing in crypto currencies doesn’t protect you from risks during periods of high volatility. Don’t let the hype get into your head. Keep a level head so can structure your investment strategy in a way that lets you avoid pitfalls and maximize your yields.
Analysis is crucial to your success as a cryptocurrency investor, so don’t let speculations drive your decisions. No doubt, there’s going to be a lot for you to learn along the way, so stay inquisitive and always (ALWAYS) get second opinions.
- Make friends
The best thing about cryptocurrency investing is that you become part of a tightly-knit community where people can reach out to each other to discuss opportunities. You can find such communities just about anywhere, but if you really want to sit in the big boys’ table, you will have to network with experienced traders and investors through platforms like Telegram or even Reddit. You will surely find people in these places who are just as enthusiastic as you are when it comes to crypto investing.
If you want to be among people who eat and breathe cryptocurrencies, you can check out sites like Bitcoin Talk that currently has over two million members. The platform features the latest news on cryptocurrency markets as well as guides and manuals on mining, investing, and everything in between. There’s also Stack Exchange where you can post questions and let experts from Bitcoin and Ethereum give you insightful answers.
- Know where to buy
Investing in cryptocurrency is just like any other type of legitimate wealth-generating scheme. But aside from building an investment strategy and creating a network of possible investment partners, you also need to know where to purchase the type of cryptocurrency for your initial investment portfolio. For a start, you can look to broker exchanges where you can purchase Bitcoin or Ethereum using cash. There are also other more convenient means of buying cryptocurrencies. Whether you live in Van Nuys or Encino, you can always find a Los Angeles Bitcoin ATM where you can buy Bitcoin with cash.
- Diversify your portfolio
This, of course, is standard practice when it comes to proper investing. You can’t put all your eggs in one basket and expose your capital to too much risk. You have to divide the risk across different asset classes and sectors so that if one sector is not doing so well, you still have other assets to back up your bottom line. Diversifying your portfolio might not yield immediate returns, but if you’re going to play the long game, you should be able to tap different areas.
- Secure yourself
Being a proven way for anyone to make a quick buck, investing in cryptocurrencies also entails serious trade-offs. Cyberattacks are fairly common since cryptocurrencies are tied to technology, but criminals are developing new ways to bypass restrictions and defraud investors like yourself. Fraud and theft account for a majority of cyberattacks related to cryptocurrency, so it’s important to make sure you properly protect yourself and your digital assets.
The best you can do is to avoid leaving your assets in exchanges, which are the prime target for hackers. As much as possible, you should be able to park your cryptocurrencies in your wallet where they are most safe. It’s also important to do your research on an exchange to know whether it is legitimate. There are buyers and sellers out there that prey on unsuspecting newbies. And considering that governments lack teeth in their oversight of blockchain technology, your only means to stay protected is to build networks and keep yourself informed before jumping into an exchange.
- Avoid making unnecessary purchases
If there’s one thing you really need to know about cryptocurrencies, it’s that you can get easily hooked. When you are confident about how the market performs, there is always the tendency to raise the stakes just so you could increase your returns. Think of it as a poker game where you’re winning successive hands. As your confidence grows, so do your bets and your risks. Your winning streak comes to an end when someone unleashes a Full House against the Double Aces you went all in for.
Investing in cryptocurrencies is nothing like a game of poker. When you go down, you go down hard. You will find yourself purchasing more Bitcoins, thinking you are going to do it right this time. Before you know it, you have just sold your house and other material assets because you are very sure the cryptocurrency gods will be in your favor.
If you want to roll with big boy investors, don’t let ambition clout your judgment. Everything you do in the exchanges should be calculated. Don’t let your gut feeling influence your strategy. Get reasonable advice from experienced players and not from someone who thinks that advice to go all in and pray for fate to be on your side, passes as expert insights.
Cryptocurrencies may very well be the future of financial markets. But depending on how economies fare throughout this pandemic, you must be able to make the right decisions that can yield massive returns in the long run.
Keep these tips in mind for a successful venture into this constantly growing sector where it’s possible to become wealthy in Hollywood in another way!