INVESTMENT TIPS

There is too much advice on the internet, but I would like to underline two main tips on how to invest successfully:

Do your own research!

Dive into analyzing and learning about the coins you are interested in using CoinMarketCap or a similar platform. Read news about it, learn more about coin capital, and join forums like Reddit to keep updated.

Research the team behind the cryptocurrency. Check their background, experience, and track record. The project must be transparent and secure at the same time. Additionally, look at the community around the coin. Active and engaged communities often signify a healthy project.

Read the project's whitepaper, which outlines its goals, technology, and roadmap. Using it you can understand the future of this coin.

Risk management

Decide on the percentage of your portfolio to allocate to each cryptocurrency. This can be based on your risk tolerance, investment goals, and market conditions. For example, you might allocate a larger portion to established coins like Bitcoin and Ethereum, and a smaller portion to higher-risk, emerging coins.

As the British nobleman and member of the Rothschild banking family, Baron Rothschild, once said, "The time to buy is when there's blood in the streets." This timeless advice resonates profoundly in the context of the cryptocurrency market, which, much like the stock market, experiences cycles of euphoria and despair. When prices soar during bull markets, it's easy to get caught up in the excitement and overlook the inherent volatility of the market.

Moreover, the history of financial markets is replete with cautionary tales of asset bubbles bursting and stablecoins collapsing. The Dotcom bubble of the early 2000s and the global financial crisis of 2008 serve as stark reminders of the fragility of markets and the importance of sound investment practices.

In the case of stablecoins, while they are designed to maintain a stable value, they are not immune to systemic risks. I recommend you store money in Tether (USDT), the most stable one. This is the case with USTC, where mass withdrawals led to a catastrophic decline in value, and now its price is about a couple cents.

Therefore, by adhering to the timeless wisdom of Baron Rothschild and adopting a cautious approach to investing in cryptocurrency, new investors can safeguard their assets and navigate the market with confidence.

In the cryptocurrency market, this means having the discipline to hold onto your investments even when prices are plummeting. While it can be unnerving to see the value of your holdings decline, history has shown that markets tend to recover over time. In fact, some of the most significant gains in the cryptocurrency market have come after periods of extended downturns.

Therefore, by adopting a long-term mindset and resisting the urge to panic sell during market downturns, investors can position themselves for success in the volatile world of cryptocurrency.