Quick News : TimeCoin’s Special Token Sale
There’s something paradoxical about cryptocurrency and cryptocurrency investing. On one hand, it’s presented as money and investment opportunity for the people. But it’s easily one of the most complex assets out there. Even those who’ve been studying it for years do not completely grasp many core principles of cryptocurrencies but will never admit it to you. This is one of the reasons why there’s such uncertainty around crypto, and why so many investors fail when they hit the market. It doesn’t have to be that way, however. Let’s take a look at a few common reasons why this happens.
They Assume that Crypto is Like Stocks
There is actually very little in common between stocks and cryptocurrency. First comes the regulation. Cryptocurrency and cryptocurrency exchanges are nowhere as regulated as Wall Street, and that leads to uncertainty. You also won’t get financial reports on crypto, and it doesn’t react like stock at all.
Crypto is extremely volatile, and its moves are often cryptic. You often have to do forensic work to see what event may have triggered a sell-off. This makes cryptocurrency a lot more difficult to predict.
They Go in Green
As we said earlier, cryptocurrencies are very complex, and while it’s often a popular choice as a first investment, it’s not very beginner friendly. Don’t expect that you’ll be able to pick up crypto investing without having at least some understanding of how to read and charts and technical analysis.
You will also need to get as much outside help as possible. The problem is that very few analysts truly understand crypto and there isn’t anyone in the mainstream that we could say is an authority on the subject. So, you will need to look at alternatives.
The Crypto Investor Network is a perfect example. This is a cryptocurrency research service that was founded by two seasoned cryptocurrency traders with solid track records. You will need to get as much knowledge from respected figures in the community before you even think about investing in an asset as complex and misunderstood as cryptocurrency.
They Can’t Read a White Paper
It’s scary to see how many people will invest in a coin without knowing anything about what it is, who it is for, and how it works. New projects are being released every single day, and you can’t rely on some YouTube site to make decisions. You need to learn how to read the technicals on a coin or at least listen to someone who did. Get as many second opinions as you can as well.
The Need for Positive Reinforcement
One of the worst issues with crypto investors is stubbornness and an inability to accept negative news. You have those out there who will advocate for holding coins forever no matter the market conditions and sincerely believe that every bit of negative news is an attempt by the global bankers to stop cryptocurrency in its tracks. Don’t be one of these people.
If you manage to avoid some of these errors, you could have a chance at being successful long-term with cryptocurrency investing. The most important is actually understanding what they are, which should be essential for any asset.