There is no such thing as ‘risk-free investment’. Every form of investment has its own set of risk factors. Similarly, investing in crypto also has its own set of disadvantages, all the more so because crypto is a fairly new segment in the asset class investment genre. Even though crypto has become quite a popular investment option within a short span of time, it still remains somewhat of a puzzle for many at large. If you are one of those novice investors who want to explore the crypto market but stay away due to a lack of knowledge, this article is exactly what you will need to give you a headstart in the crypto world. So read on to learn some of the basic Dos & Don’ts of investing in the crypto market.
Do have a lot of patience: Patience is the key when it comes to any kind of long-term investment. In simpler words, investment is a cyclic process where one starts investing a calculated amount over a regular period of time spanning years, makes a profit, and then starts investing from the profits incurred. So, basically, investment is all about earning more money by using your existing money. Even though this might sound simple, in reality, it is far from being so simple. One needs to spend wisely, diligently, and consistently over a span of a few years in order to be able to make the most of their investments. Hence having a good deal of patience is a prerequisite for all your long-term investment ventures.
Don’t believe in whatever you hear: Crypto has suddenly become the talk of the town. Nowadays almost everyone knows a thing or two about crypto, but unfortunately, the information about crypto that most people have is either completely fake or partially true. At any rate, one must always consult investment professionals before, do their own research, and start investing only when they are 100% sure about what they are doing or where they are investing. So don’t believe in whatever you hear about crypto and end up falling prey to fake information, losing all your hard-earned money.
Do figure out your risk-tolerance threshold: Figuring out the risk-tolerance threshold is the most important factor that every investor must take care of before starting their investment journey. Risk tolerance is basically the ability of an investor to figure out the maximum amount of loss that they will be able to tolerate in case nothing goes their way. This threshold varies for different users and depends on the investor’s capacity to bear risks.
Don’t fall for shortcuts: There are plenty of stories about how people became billionaires/millionaires almost overnight by investing in crypto. Even though the stories might seem to be factually correct most of us fail to realize that there can never be a shortcut to such overnight success. Behind all these stories there is always a long history of calculated risks and long-term, systematic investment plans that had been adhered to which became fruitful all of a sudden due to the volatility of the crypto market.
Systematic investing in Bitcoin & other Cryptos with CoinDCX Crypto Investment Plan
CoinDCX, India’s number one crypto exchange app has come up with an exciting feature called the C.I.P or Crypto Investment Plan. The new feature allows an investor to invest a fixed amount in the crypto market at regular intervals. It is basically an automated investment plan that helps the investor to invest consistently in the crypto domain, make the most of your investment, and be able to create a strong investment portfolio.
The C.I.P. feature eliminates the need to constantly monitor the crypto market. This cool new feature helps the investors in adopting a more disciplined approach in their crypto investment journey. The CIP feature helps in breaking down the investments into weekly installments, allowing the investor to select a fixed amount that they want to invest weekly. Investing small amounts at fixed intervals regularly helps in lowering the risk of market volatility over time, countering the volatility of the asset class, and giving the investor the benefit of rupee cost averaging.