The cryptocurrency craze is grabbing everyone’s attention these days. There are quite a few digital currencies that you can pick from if you are interested in this investing niche. Some people are just catching wind of the opportunity. Are you one of those people? Even if you just caught on to crypto-currencies, you certainly know about Bitcoin. Who doesn’t know about Bitcoin blowing up and about investors hopping on board. Here are a few tips from Bitcoin investor, Paul McCarthy.
Remember that if you are going to invest in Bitcoin, you need to treat it like any other type of investment. Why would you buy high? That is always a mistake. That doesn’t mean you can’t wait for a dip, but people hear about something popular, and they buy it on the rise. It is perhaps a better opportunity to look at other popular digital currencies that haven’t quite exploded just yet. You do have to be careful though because there are some of these digital currencies out there that might never increase in value all that much.
There are even some digital currencies that are obsolete now. Think about these currencies in the same way you do the stock market. There are blue chip stocks, penny stocks and everything in between. A blue chip stock is more stable. However, if you buy a growth company at its 52 week high and when the market is booming, well, you might should have found another play. Likewise, if you buy a penny stock that never sees the light of day, well, you should have found another play.
That being said, what’s required of you as an investor is that you get to know the cryptocurrency market a little better. Have you heard of ripple coin? Ethereum and Ripple are two of the more prominent digital currencies aside from Bitcoin that many people are taking a look at today. Litecoin is another one, and you won’t believe how many more there are.
It might be best to monitor prices for awhile as you study the different currencies. Pull up charts, notice the trends, see what the analysts have to say and more. I do advise you to use your own brain, however, because listening to analysts is like a tug-of-war match, and it can make you very indecisive. You need to make picks with confidence, albeit after doing your due diligence. That is the only way to succeed as an investor, and I do mean the ONLY way.
Contributing Author – Paul McCarthy