Cryptocurrencies are part of the best known economic trends today, this is because they work better than the conventional monetary system; used to execute international transactions, as well as they have a value that is constantly increasing, which is possible to take advantage of, since the cryptocurrency tranding is one of the businesses that yields the most how to store cryptocurrency.
Cryptocurrencies work with the same principle as any other asset governed by supply and demand, which is why it is not possible to know exactly what their financial behavior will be; however, there are experts who are responsible for studying the probabilities, and / or analyze said behavior in short periods of time.
To execute a successful investment, it is necessary to have advice, an asset in which to invest, an investment capital and the will of the trader who decides to carry out the transaction. However, there are other principles that should be known, which we have summarized in 10 points.
1- Educate yourself financially
Knowing the way in which the financial world works is necessary when investing, this is because there is infinity of economic concepts, which will be seen frequently by the investor and it is their duty to manage them, thus their decisions will be completely successful.
2- Define the investment capital for each operation
This will be proportional to the amount of surplus capital that the individual has, however, experts recommend that the percentage allocated to a new investment is 5%, thus the margin of loss will be minimal.
3- Search for advice
The financial world has a large amount of assets; therefore, there are financial advisors who are responsible for recommending possible investments, as well as answering any doubts regarding the transactions that the investor executes.
4- Diversity in cryptocurrencies
The world of cryptocurrencies is extremely broad, which is why it is necessary to know their behavior, profitability, trend, or other factors that may influence the decision to invest, however, there are relatively reliable cryptocurrencies, as their value is affected by factors different from other digital currencies, for example the Ethers.
5- Cryptocurrencies with potential growth
The cryptocurrencies that have an extremely high value, for example the Bitcoin, tend to grow in a smaller amount than the coins of lower value; in relation to investors, this is due to the investment opportunity, therefore, it is necessary that when investing is a relatively new cryptocurrency, which has a rising trend.
6- Technical analysis
Carrying out a technical analysis in relation to the behavior of the cryptocurrency to invest allows knowing it, the objective of this analysis is to find some pattern of behavior, with this it is probable to discover what will happen in the future with said currency, investors must perform this analysis to Know when to buy or sell.
7- Do not panic
Within the qualities of a cryptocurrency is the volatility of its value, therefore, it is necessary to know that the declines do not remain for long periods of time, it is only a matter of time for the asset to return to its real value.
8- Small investment in the face of high risk
In case of not knowing totally what represents an investment of cryptocurrencies and nevertheless it is wished to continue, it is necessary that the capital for the investment is relatively low, thus the individual will be able to decide according to see the trend of the asset; whether to increase or not the capital destined for the investment.
9- Always handle the movements of own capital
Under no circumstances should others be allowed to manage their money, since it is the investor who must execute every movement related to their capital, it is possible to request the advice of professionals in the area, and however, they should refrain from directly handling the capital without the consent of the investor.
10- Move away from short operations
A short position is when the trader or investor sells assets that do not belong to him, he requests a loan from the shares of another shareholder, and sells them in the market, since it is estimated that said asset has increased its value so much that an decline.