The cryptocurrency world is a fascinating one, to say the least. With all of the new innovations, it can be hard to keep up with which coins are worth investing in and which ones will fail miserably. This is perhaps the reason why people are turning to institutional investors for advice on which cryptocurrency will be the next big thing.
Fortunately, you don’t have to wait months or years until an institution tells you what they think of a particular coin. There are plenty of cryptocurrency-savvy individuals who can give you their opinions and insight into this market. If you want to be one, here’s everything you need to know.
How To Be A Savvy Cryptocurrency Investor?
First, what’s a savvy crypto investor? A savvy cryptocurrency investor individual is knowledgeable about the cryptocurrency market, knows how to analyze trends, and may use various software, like a crypto trading simulator, to experience trading and all of its technicalities before entering the real market. Because of this knowledge and skills, they’re able to keep up with the latest trends and changes in this market.
If you want to become one, here’s a quick checklist of things you need to do:
- Monitor News Regularly
The first thing you have to do is to regularly monitor cryptocurrency news sites, blogs, forums, and social media accounts related to cryptocurrencies for updates on new coins, features, partnerships, exchanges, and wallets. These venues are valuable sources of information because these are where enthusiasts go to receive first-hand news.
Setting up an account on a messaging app is another great way of receiving breaking news as soon as they happen. This is because many crypto-related groups post news there first before anywhere else.
However, to excel in this area, it’s important that you don’t only follow the latest news but also be able to analyze which one is credible. Keep in mind that some sources are more accurate than others. There are sites that offer extensive coverage of cryptocurrency news and events but they also have a reputation for writing biased articles about certain coins. This scenario happens because they receive financial support from rival companies to promote their own agenda.
- Look For Discounts And Other Offerings
Monitor social media accounts of popular exchanges, wallets, and payment providers that are related to cryptocurrencies for any discounts or special offers on this sector. Discounts and other incentives are a great way to get your hands on new coins that haven’t been released yet.
By doing this, you can be one of the first people to invest in a particular coin. This strategy can give you an advantage over everyone else because it’ll mean bigger returns for you when more individuals start investing in them later on.
- Stay Tuned Of New ICOs
Keep track of new ICOs (Initial Coin Offerings) that are coming out. You can do so by regularly checking blogs and social media platforms related to cryptocurrencies. You can also gather any other information you can use to be a savvy cryptocurrency investor. This step allows you to purchase coins while they’re still affordable.
- Conduct A Fundamental Analysis
Get familiar with the coins that have already been launched, know their prices, and how much money was raised during each coin’s ICO (initial coin offering), as well as what the teams behind them are working on now. These steps fall under fundamental analysis and can easily be done by reading cryptocurrencies’ white papers or visiting the companies’ official websites.
This step is very important since it gives you a better idea of how well the coin is doing, its value proposition, and who’s behind it. Also, check whether or not they have any upcoming announcements concerning their core values. These can include updates on new features being added to their token that can increase its usability in the market.
- Try Technical Analysis
Fundamental analysis looks at a coin’s value based on its technology, team, and market position. Technical analysis, on the other hand, looks at price charts in order to determine patterns and trends. Hence, technical analysis looks only at the charts to identify trends that’ll affect an asset’s price movements in the short term.
Another advantage of conducting technical analysis is it can be applied to any kind of asset. You can conduct technical analysis on a coin with a market cap in the billions just as easily as you could do for a less popular cryptocurrency that has yet to gain widespread popularity and an audience.
You don’t have to study charts all day long, either, since there are plenty of websites and apps that offer free services to help you determine when you should buy or sell a coin.
If this seems like too much work, there’s also the option of paying for technical analysis with third-party companies. They can provide you with access to eBooks and courses designed specifically around cryptocurrency investments.
- Learn As Much As You Can
Learn all about blockchain technology, which is the basis of cryptocurrencies. Additionally, familiarize yourself with smart contracts and how they work before you start trading or investing in coins with these features. You can learn everything about them by taking both free and paid online courses.
- Have A Mentor
If you want to become a successful cryptocurrency investor, having a mentor is one of the most important steps to take. Getting insight from someone who’s an expert in this field can significantly help speed up your learning curve and, at the same time, save you money. It’s because rather than testing out all these strategies yourself, there’s somebody already doing it for you with proof that they work.
Remember that this person needs to be somebody you can trust and not just going to benefit from your ignorance in cryptocurrency investing. They should also be someone with the right kind of expertise and a good track record so they can offer advice based on real knowledge about cryptocurrencies and blockchain technology.
- Join A Community
Join a cryptocurrency community or forum where investors regularly post their latest thoughts about the market in general and specific coins.
You can also ask questions there to get opinions from people who have more experience than you do when it comes to trading cryptocurrencies. This will also give you a chance to interact with other crypto investors and get their opinions on various news.
- Decide On The Right Amount Of Crypto To Invest In
You might still be wondering how much you should invest in, but the answer to this question totally depends on you. It all boils down to how much money you’re willing and able to lose. So, it’s important that you carefully consider your options before investing in any coins or tokens.
Also, if the market has recently changed, pay attention to it. If there are new trends or coins that seem promising, research them further before investing in any of them.
The cryptocurrency market is always evolving and growing, so it’s important to keep pace with these changes. With that being said, once you have the necessary knowledge and experience in this field, not only can you start investing but you can start thriving in this industry, too.
Remember that there are plenty of great investment opportunities out there. Make sure to do your research before spending any funds. Finally, remember not to invest more than you can afford to lose.