In our previous article, We’ve talked about Top ten Cryptocurrency by market capitalisation. In this article, we will discuss what course to follow for cryptocurrency from today’s level. One thing’s we’ve been telling our readers, this is a very volatile and speculative asset. If our reader wants to invest in them, we recommend following strict rules when they are going to put their principles. They can either do Dollar-Cost Average to the high-quality blockchain type project. You might think what do we mean by high-quality. This type of virtual currency has been already using in the real world and is expected to increase usability to this coin such as Basic Attention Token, Ethereum(ETH). We can advise you not to buy DogeCoin and other same kinds of assets that’s because Elon Musk or whoever told it has value unless you want to lose all of your money or part of it. We think DogeCoin has a real value of zero or near zero, believe it or not, the future will tell us. In our view, whoever buys the DogeCoin type virtual currency will be lost a considerable amount of principle and this dog will bite them, which they can’t fix or nobody can’t fix. Let’s talk about What course to follow? (In Cryptocurrency) from today’s level.
Strict rules to follow and Points to Remember
Before our investors invest anywhere they’ve should understand the following things:
- There is no easy way to make money whether in investment or anywhere else.
- To be successful in investment, an individual must have discipline, experience, patience and most importantly good psychological framework.
- Understand what you are buying if you don’t understand then don’t buy it.
- If you buy a stock think as a piece of Business or the whole business.
Course to Follow from today’s Conditions
Furthermore, understand a market and fluctuations is critical in this business. If one thinks you can be rich in one day, one week, one month, six months, one year or two years by investing in some kind of electronic currency or stock. It will be healthy and best to forget about it. To becomes a successful capitalist they must follow a reasonable course. There are three ways our investor can follow from today’s conditions in digital money:
Use dollar-Cost Average to invest in High-quality digital currency
Wait a few years to get a barging of up to 80% or more
Don’t invest if you can’t follow 1 and 2 recommendation
“Please be aware that our discussion here is only for educational purposes. We don’t provide investment advice, and this article shouldn’t consider as trading and investment advice. Every time makes your research of any personal investment is good for you. Your risk tolerance, and financial means, before jump into a transaction. If you have a doubt, please consult with a financial adviser.”
Advice for DogeCoin(DOGE) or same kinds of Cryptocurrency buyers
Let us clear here for you, if you buy DogeCoin(DOGE) or there is another cryptocurrency called SHIVA INU (SHIB) or the same kinds of projects which have no value or zero value. Ask yourself, what are you doing, if you buy them? In fact, you are Speculating. Our one recommendation to you is to understand Investment Versus Speculation before swimming on that kind of river. One thing we can clearly understand from the past and probably we will see in the future is that the main enemy of investors is themselves. The general public think if let’s consider X Digital currency has skyrocketed in the past year by 1000% or more, It will increase in next year as well they don’t think in the reverse direction in our view this is completely wrong. In addition, they’ve started to dream and even create a castle in the air. The fact is if they’ve bought an air or say Blue sky they will get nothing except hard time or even they can’t sleep at night. Thus, we urge our investors, please invest money that you can afford to lose. It does not matter whether $1, $2, $3, $5 or more.
1st Direction to Follow: Use Dollar – Cost Average to Invest in High-quality Cryptocurrency
The first path to follow is to use Dollar-Cost averaging is the process to invest a certain amount of funds in investment instruments in frequently basic such as weekly, forthrightly, monthly or other frequent basic by ignoring technical chart or another process of buying signals. The dollar-cost average can be effective if devote for the long term such as for the next five years, ten years, twenty years or more than that. The main benefit of this kind of process is you will buy less when the price goes up and you will buy more when the price goes down but on average it will be profitable.
Fact to Remember
We’ve been stressing the fact that cryptocurrency is very volatile. Thus, we saw up to 90% or more discount from the pick price of any kind of digital currency. Whoever buys this kind of assets at the pick price or near that price, they’ve lost a substantial price at least temporary. We can clearly understand that speculator who buys assets at pick price by over-excited he will sell it when it goes down by panicking thus he will have triple harm one: He can’t sleep at night two: He will be losing his part or all principal all-time Three: he is getting pain. There is no guarantee you can get that much discount but there are always high chances people will be panic, obviously, if the general public will be excited one time it will be logical to think they will be panic. The question is: Can you act on that time when everyone is resisting to do it?
2nd Direction to follow: Wait a few years to get a bargain up to 80% or more
The second path to follow is to wait a few years to get a bargain up to 80% or more.
Price of Bitcoin(BTC) from Jun 2017 to Feb 2019 (Data Taken from Coinmarketcap)
You can see from the chart that the price of Bitcoin went up from almost USD 1,000 to USD 20,000 and then again come back to USD 3,000. This is an almost 85% pull back from the top price in Jan of 2018. Therefore, this can happen again. True investors must have the ability to buy at that time by disregarding news and recommendation from most sources. Most of the time, in the financial world the recommendation from others is more harmful than helpful, act on fact. If you have facts in your hand, don’t listen to others listen to you.
Conclusion
In final, you must have the self-control to get barging from today’s level. You can also use the Dollar – Cost Average to invest in high-quality cryptocurrency from today’s level. In addition, you should have a good psychological framework to invest successfully either in cryptocurrency and stocks. That’s that path you can follow from today’s level in Virtual Currency.
Let us know what do you think in a comment below.