In 2017, the popularity of cryptocurrencies grew tremendously. The price of most digital currencies on average increased. Hundreds of new entrants joined the multibillion-dollar industry. As a result, many people who were previously on the fence about investing in digital currencies are now ready to take a leap into the industry in 2018.
Like delving into anything for the first time, it comes with numerous questions and uncertainties. This article details a complete cryptocurrency investment guide for 2018. It will explore the fundamental considerations one should make before investing in cryptocurrencies.
Investment purpose
People invest in cryptocurrencies for different reasons. The value of cryptos is two-sided. On one side it as an asset and on the other it as a currency. Individuals may choose to invest in cryptos just like they would in property or any other asset. In this case, it would be to grow their investment portfolio. Others may acquire cryptocurrencies as a means of payments; while others because they understand the vision behind cryptocurrencies and they would want to drive it forward. Having clarity about one’s intention for investing in the digital currency industry will serve a crucial role in choosing a cryptocurrency, how much to spend and how to use them.
Market trends
Market trends play a vital role in shaping an investor’s trading decision. The cryptocurrency marketplace is continually changing. New entrants are joining the market, demand, and supply of the cryptos is frequently fluctuating, and prices are ever changing. Unlike traditional market cycles that follow a particular pattern, cryptocurrency markets are uncertain. An investor must stay up to date with market trends all the time. Datacoinz provides latest market news to keep traders abreast of most recent trends.
Type of cryptocurrencies to invest in
There are thousands of cryptos on the market today. Some have been around for longer than others. They vary in their architecture, prices, and supply. As some enjoy an exponential price spike, others are declining. One of the critical decision that investor must make is how many and which cryptos to invest in.
Timing
Is there such a thing a perfect time to buy or sell? Experts discourage investors from buying at the uptrend peak, and neither is it advisable to buy when the price is crashing. Preferably, one should buy when the rates are steady and relatively low.
There is no surefire way to tell when the time is right. 100% price spike may seem like a bubble, and when traders least expected, it could spike further by 1000%. Taking time to watch the market trends, critically analyze and using one’s gut will guide an individual’s trading timing.
How and where to buy cryptocurrencies
A few years ago, when the digital currencies first entered the world, there were limited options for where and how to buy them. Today’s investor is presented with numerous options which is a good thing, but it can be confusing. They can buy and sell cryptos through ATMs, Exchanges, peer to pee and brokers among others. They can pay or receive payment via cash, wire transfers, bank transfers, e-wallets among other option.
To remain on top of the investment, traders need to stay up to date with the latest on cryptocurrencies. With numerous bloggers and websites offering information on the subject, it is crucial to be selective about one’s source of information. Datacoinz.com is committed to providing traders with the most recent, accurate and relevant information on cryptocurrencies. The website in itself can serve as a complete cryptocurrency investment guide 2018.
