A decade ago, if Bitcoin cryptocurrency were mentioned, it would have been mistaken for an underworld currency, involving hooded hackers sitting behind computers.
But, today it has taken the place of the top asset kicking even gold aside.
Bitcoin and other cryptocurrencies have evolved so much as an asset class. Even in countries like ours, people are starting to realize the potential of such technology.
CoinSwitch Kuber saw more than 10,00,000 sign ups in less than 6 months. With many young and tech-savvy investors are grabbing their piece of this new asset class.
While the number of people entering the market keeps rising, most investors are unaware of how to conduct the trade successfully to yield returns.
Things To Do After Investing In Cryptocurrencies
Insufficient knowledge and experience lead investors to make hasty decisions that impact their portfolio.
Which is why we have listed 5 things an investor should do after investing in cryptocurrencies. By following these tips, you will have a better grip on your investment.
1. Secure Your Wallet
Online scams and frauds have emerged along with the evolution of the internet, and it has not spared the cryptocurrency market also. As cryptos are getting more popular, malicious attempts on the coins are also on the rise.
Some of the most common security issues investors face are:
- Exchange Scams
Many platforms are claiming themselves as cryptocurrency exchanges and selling investors the guaranteed quick rich schemes to trick them.
They generally use emails and social media to promote their strategies. You can avoid this by conducting a thorough background check on the platform that you are using to invest.
- Phishing Scams
Some hackers use emails and messages as clickbait for investors. When you click on a button, it will take you to some dark websites, make you expose your personal information, including your crypto wallet information to unintended parties like hackers.
Thus, it is essential to keep your wallet safe and secure. Transfer your crypto assets to a private wallet if you intend to hold them for an extended period or use a custodial wallet CoinSwitch Kuber
2. Understand The Risk To Reward Ratio
The risk to reward ratio is generally used to assess the potential of the investment to make profit relative to potential loss. Every trade involves risk and returns. Cryptocurrencies are highly volatile, and hence the risk and reward are significantly high.
This ratio determines how much returns you get for every rupee risked in the investment. If your reward is less than 50%, then there are chances that you may incur a loss from the trade.
To understand this ratio fully, you must assess your level of risk tolerance and gauge the potential risk of a particular crypto.
3. Use Reminders For Price Alerts
Many investors, especially novel investors, have the habit of checking the price of the currencies now and then.
I agree that the crypto market is highly volatile, and the prices fluctuate very often. But continually monitoring the prices could negatively affect your daily life.
If you are not a day trader, it is best to set reminders and price alerts for your investments. Such signs will notify you when your currency has touched your target price set by you or use the feature of limit orders while you invest.
This way, you can still stay in the loop of the bullish and bearish crypto markets without distracting your daily routine.
4. Diversify Your Crypto Assets
Diversification is an evergreen strategy for investment. By putting all your eggs in the same basket (investing only in one asset), your entire savings will be at risk when the investment underperforms.
This is why it is essential to spread your investment across various asset classes.
By keeping an array of assets in your portfolio, you can significantly minimize the risk of eroding your investment. Even within the cryptocurrency asset class, there are many options apart from Bitcoin such as Etherum, Ripple etc.
A well-diversified portfolio is a key to a healthy investment.
5. Keep Learning
When it comes to investments, no one person can be fully enlightened. The markets are full of surprises. Especially since crypto markets are significantly young, new developments keep coming along the way.
It would help if you kept yourself abreast of the latest developments to succeed in the market. There are many ways in which you can update your knowledge.
For instance, you can read books based on cryptocurrencies, watch informative documentaries, listen to podcasts, read articles online or talk to a professional.
KuberVerse is also an initiative with a similar goal. We aim to empower you and make crypto investing easy and straightforward for you.
Wishing you a successful investment journey!
[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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