NFL Star Richard Sherman: Invest in Cryptocurrencies Responsibly
NFL Star cornerback and infamous trash talker Richard Sherman went on Business Insider to put crypto-haters in their place. “Have you lost money in stocks … in real estate?” He challenges the camera before adding “You will make money in Bitcoin, and other cryptocurrency. So invest, intelligently please.”
Talk of investing in Cryptocurrency is everywhere but how do you invest intelligently? Is it the biggest scam ever perpetrated or the easiest get rich quick scheme imaginable?
The truth is it’s a currency market that works, at least as far as the investor goes, much like the stock market. There are ways to invest longterm for slow gains as well as day trading to make fast money on speculation.
“At the end of the day, cryptoassets are just like every other asset. You need to have a firm investment thesis, and you should reevaluate it as more information becomes available.” Emin Gun Sirer Prof. Cornell University
Just like any investment, in buying and selling cryptocurrency the best infromed are most likely to succeed. The following are some basic steps to get started.
Once you have an understanding of the way the crypto market works the first step is setting up an account with an exchange. Make sure the exchange lists the preferred coin(s). Also, check the exchanges fee structure and make sure you can move your investment in and out of the exchange safe and easy.
There are now countless alternatives to Bitcoin on the worldwide market. For the first time buyer choosing either Bitcoin or one of the other large cap coins like litecoin, ethereum, Ripple or Bitcoin cash is an easy and relatively safe way to get into the system.
Price is important but it’s not the only factor when deciding when to buy. Knowing the valuation, available coin supply, what technology uses the coin meets and what is the targeted market are all important factors to success.
Like any investment, the old adage of buy low – sell high works the same in the cryptomarket.
If investing in one of the major coins this strategy probably doesn’t matter so much as the price will follow the market trend.
With lesser known, low valued coins be wary of pump and dumps.
which is when a coin is being artificially inflated by someone (or some group) in the position to create an artificial value in order to dump their holdings at a large profit at the expense of followers.
Know Why to Buy
There are a few important factors that will generally determine whether a coin will succeed once it is launched.
What market or technology is the coin going to service or advance?
Does the technology behind the coin make sense?
Who is behind the coin? Check out the team that created the tech and strategy of the coin, make sure the claims they make are realistic.
There is a lot of news about hackers stealing coins in the news. This happens when investors leave their coins on the exchange after purchase.
An offline wallet with 2-factor authentication, like google authenticator, is a must to keep assets safe.
There is another old adage associated when investing; beware of need, greed, and speed. Do the reading, get at least a basic understanding of the market and technology. Invest only amounts that can be comfortably lost.