As it stands around 4% of Canadians own or use Bitcoin.
The use of cryptocurrencies is growing as more people are seeing its potential benefits. Investing in crypto can be risky, however. If not done right, you could end up making some serious losses.
For 5 tips on improving crypto investments, keep reading.
1. Avoid “Pump Groups”
Crypto trends are often driven by speculation and it can be very tempting to follow people when they make certain claims. The “pump-and-dump” strategy may promise a very good return on investment, but you’re probably better off avoiding it.
These groups will buy up a large amount of crypto which causes the price to spike, then sell it when it’s high, and the price will quickly drop again. This can generate good crypto investment profits but is very risky. It’s often only whales and other insiders that do well from this, with the majority of people making a loss.
2. Learn as Much as You Can
Investing in cryptocurrencies may look easy, but there’s more to it than most people realize. The more you understand, the easier it will be to make good decisions. There are plenty of free resources you can get information from, especially as a beginner.
YouTube is a great place to start as many investors also create content to help people. Look into some of these investors and watch some of their videos to start getting a better understanding of what you should be doing.
3. Keep Your Crypto Secure
When it comes to crypto, security is one of the most important aspects. There are scams out there, so make sure you’re cautious. Never click any links you aren’t certain about and don’t give anyone details like passwords or seed phrases.
There are many crypto investing platforms you can buy your cryptocurrencies from. Make sure you only use reputable exchanges and transfer your crypto to a secure wallet. For the best level of security, you should invest in a hard wallet.
4. Diversify Your Portfolio
There are thousands of options for cryptocurrencies. Some are bigger than others, with Bitcoin sitting at the top. The value of cryptos fluctuates quickly, and if you’re only invested in one or two, your funds could drop very suddenly.
By investing in several types, your funds will be more secure and you’ll have more potential to make profits. You can buy Kusama, Bitcoin, Ethereum, and plenty of other cryptos from VirgoCX.
Do Your Own Research. This is one of the most important rules of investing in crypto. No matter how long someone has been investing or how much money they’ve made, no one can predict how the market will go.
If you blindly listen to someone else about what to invest in, you might end up making losses. You’ll feel like this other person is to blame, but you should have done the proper research about the investment first to make sure it was right for you.
Any time you’re thinking about an investment, make sure you understand where your money is going and what the risks are.
Improving Crypto Investments
The key to improving crypto investments is understanding them. Make sure you learn as much as possible and do the proper research before making any investments. Invest in various cryptos, and make sure you keep them secure.
For more tech articles check out some of our other blog posts.