With the surge in cryptomonnaies late last year, many have decided to take the plunge. The influx of new investors has been such that certain trading venues have been forced to close temporarily new listings. Since then, the market suffered a severe correction, some currencies deemed solid and safe as the Ripple seeing their value divided by two. What lessons can be drawn ? That cryptomonnaies are like any other asset : it must be learn rigorously before investing. Of course, the market prospects of the crypto remain bullish on the long-term. But those who choose the good horses will yield much higher compared to those who have invested without discernment.
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The essential step before any significant investment in a currency that is digital is the reading of the White Paper. This document of a few pages describes the functioning and the added value of the currency digital. Even the Bitcoin has its White Paper. However, these documents can be slightly technical. Also, it is better to acquire it in the first place a basic knowledge that applies to most of the cryptomonnaies, as to the operation of the famous Blockchain. All this learning can take several hours but it is a lesser evil. A wise solution to start with is typically the use of a training for the cryptomonnaies.
Social networks such as Twitter are full of traders influential, but it is risky to follow blindly their recommendations. In fact, if they invest in a new asset, they have a vested interest in ensuring that the maximum number of investors the mimic, so that the course flies away. To make matters worse, some are even paid by the developers of these currencies digital to make these ” tips “. In short, their recommendations should not prevent you to forge your own opinion. A word to the wise…
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