Best 10 Investing in cryptocurrency strategy 2022

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investing in cryptocurrency strategy 2022: Well in my personal experience there is no good or bad time to start investing. All I can say is that start learning today if you don’t. Because You have limited time on this earth.

Introduction (Investing in cryptocurrency strategy 2022)

In the year 2022 the post-pandemic year. I know Covid hit hard for all of us globally. for at least I personally realized there are no borders between the countries, we are living in a global humongous family.

 But this year, 2022 could be one of the best years of your life. If you could find the next valuable asset like bitcoin in 2017, where according to coin market cap the value of a single bitcoin is approx $1000 or even go further in past around 2014 – 2015 where the value only approx $ 150.

An event like this in History happens only one time in your life Time. That missout feels like to wonder what If you have some way to go back in time and buy some bitcoins at that time. But for now, time travel is sci-fi.

But you need to invest at the perfect time and a bit of luck factor. You have to learn and improve your cryptocurrency investment strategy daily, Practice makes Progress.

Only the most skilled and disciplined investors can gain big profits over time, while speculators and noobs are just holding useless coins which will not increase over time, even worse It could be scam crypto. They just give fake value coins against your hard earn Money

This is why I want to help you. I took a long time in search of best practices to find good opportunities in the market a ultimate cryptocurrency investment strategy Guide: is a list of common blunders that you should avoid when investing in the wild-west crypto world.

Are you excited to know these strategies? 

We’ll start with basic mistakes that a new investor could make and as you move further in the article it will be more advanced ones. So if you want to under the complete strategy, make sure to read until the end.

Let’s get started!

1. You Don’t Know the Basics

If you’re just beginning investing in crypto, you’re probably keen to trade. Isn’t it.

But don’t rush it. Take a deep breath inhale some oxygen and first clear your head, and remember impulse trading is always a disaster. give yourself some time to learn the basic cryptocurrency trading strategy first.

Do you know the basics of blockchain technology? Do you know what circulating, total supply means? Do you know what inflation is? Do you understand the terms exchangeswalletsprivate keys, and public keys?

If you are unable to answer these basic fundamental questions. You’ll be in trouble quick enough. give you some time to train yourself, it’s vital.

To learn the basics, we help you. You can go through our website – there are a bunch of cool resources to start learning about cryptocurrency investing strategies.

2. You Don’t Take Action

Every day, You overlook the opportunity in cryptocurrency investing because you aren’t sure about how to get started.

Even professional investors miss on the latest tools or cryptocurrencies that could bring considerable returns just from not staying active.

Why? Because they’re terrified to make mistakes. The first step is to take action, so don’t hesitate to plunge right into it.

Action will result give you experience, and experience will make you better in decision-making. In fact, You will get the experience by learning from the mistakes

If you are feeling ready to make your first investment, then don’t overthink, just do it. 

Even if your starting capital is only $10,

You don’t know the difference you make in your life by taking action even if it is small doesn’t matter.

This is where your crypto investing Journey will begin, and you will expense the highs and lows of investing.

3. You Don’t Understand the Technology Behind Cryptocurrency

What makes Bitcoin and other alt cryptocurrencies innovative and futuristic. If you don’t know what is the underlying technology. The Journey will be risky.

You don’t want to depend on others people’s predictions and analyses to make your crypto investment judgments. Until you can analyze these projects on your own, you will be missing the big opportunities.

After all, the inventors of Bitcoin and its early adopters were all normal people like you and me.

To avoid this, find a reliable source of information that you can trust to educate you, take some the time to learn, and most importantly, enjoy the journey of learning.

I have also had good knowledge of blockchain. and wrote some article for you. You can go through the content. 

Once you understand what is blockchain? what are consensus algorithms, what is mining, and all the fancy jargon, you will be improved and you can make better decisions on your own.

Blockchain technology is continuously evolving, so try to keep up with it the best you can.

4. You Neglect Fees

Now you’ve taken action, and Now it’s time to find the right exchange with the best fees.

When people begin trading, they usually make lots of trades a day wishing to earn small profits in large quantities. While it seems nice in theory but they often forget there is a brokerage fee for every trade you make. 

Do your thorough research before you start your trade. If you really want to become a successful crypto investor, you need to start taking good habits right and the right investor mindsets from now on.

5. You Overtrade

Overtrading is the most dangerous in trading even experienced traders often do this 

Eventually, many of them lose from the brokerage fees or because they had made bad trades mistakes and then they go into a mindset of recovering the losses but at the end of the day they lose more. Because of emotion.

6. You Don’t Understand Tax Implications

As I mention Overtrading also increases your tax liabilities.

At least in USA and Canada. Most people think that they only owe taxes on profits gained that were sold back to USD or CAD, but in fact, you owe taxes on every single trade you do – even transactions from one crypto to another crypto.

The IRS and CRA consider every trade deal recognized as a gain or loss. If I try to explain to You in simple words, if you buy Ethereum by Bitcoin, they view it as a taxable event on a realized gain or loss. They suppose that you traded Ethereum to USD and then bought Bitcoin with USD, even though this is not what actually happened.

If you somehow manage to reduce your taxes and exchange fee it will impact your overall cryptocurrency investment strategy.

Tax implications, accumulated fees, and bad trades strategies are a few other reasons why you should not overtrade.

7. Know your Budget 

Rule number one; don’t ever invest more than you can afford to lose.

Rule number two; don’t forget rule number two.

Your mind is should be calm and relaxed so for this, you should go into this ready to lose all the capital that you put in. Ultimately, as the price swings up and down, you should remain peaceful and yet be living a normal life without any worries or debt

I’ve heard numerous stories of people investing blinded by their greed with their absolute life savings or borrowing large amounts of money. This is a tremendous mistake.

8. Don’t ever Think Cryptocurrencies are Shares

Cryptocurrencies are not shares You don’t have any ownership in the company nor you will receive any dividends.

If a company issues a cryptocurrency, then the company can be in profit or get acquired by another company, You will not get any benefit. 

A company may be doing very nicely, yet their coin value drops in the market.

The only exception here is perhaps security tokens which may give ownership to their investors. But even then, it’s up to the terms and policies of the offering.

9. You invest in dirt Cheap Coins

All that glitters is not gold is a saying that by Shakespeare, 

it means every cheap coin is not potential.

Lots of inexperienced investors in the crypto space purchase low-priced cryptocurrencies because they think there is a higher possibility of great returns.

If they offered one coin valued at $0.01 and another coin at $10, they blindly buy the $0.01 coin because they assume it’s more effortless for a coin to go from $0.01 to $0.05, rather than from $10 to $50.

This is a common trap if you don’t know what you are doing.

There are tons of factors that influence a coin’s value, including two important ones: 

  • the circulating supply,
  • the real-world value of the coin.

More often, a cheap coin has a massive supply of coins, which weakens the price of each coin. If the supply is huge and there is little real-world value is less than the coin priced at $0.01 is not undervalued and could be priced low value.

one more factor to consider when analyzing a coin’s growth potential is the market capitalization of the coin. The formula for calculating market cap is calculated as [current price * circulating supply] and it is a better (although not exact value) 

If you want to find the next million-dollar coin, look for coins that have a lower market cap.

Low market cap coins have more possibility to grow, but they also come with a lot more danger 

10. You Assume You Must Forever Be Right

I hate to inform you this but get over yourself. You are not always right. And it’s okay.

Investing is a business of speculation which involves some amount of fortune – even for experienced investors. To be a winner in this market, you only need to be right a certain percent of the time.

For example, if you can double your capital 55% of the time, then you can also afford to lose 45% of the time as you will make money in the long run.

investing in cryptocurrency strategy 2022
Investing in cryptocurrency strategy 2022

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