Cryptocurrency has gained immense popularity over the last couple of years, with Bitcoin leading the way in terms of market share and publicity. Cryptocurrency has exploded in value in the past year, but if you’re not careful, you could lose money on your investment if you don’t know what you’re doing. Here are three things that can happen when you give up on cryptocurrency.
Decide on an amount
We’ve all been there before. Maybe you’ve given up on cryptocurrency, or perhaps you’re just looking for a change of pace. There are several questions to ask yourself when deciding on an amount to invest in your next project. Questions like Am I looking for a quick profit? and Do I want to jump into cryptocurrency again? can be helpful in figuring out how much you should put into your next project. At least, it will give you a guideline to work with as you move forward toward building a successful cryptocurrency business!
Pick a month
If you have been in cryptocurrency for more than a year, then congratulations! Most people do not make it that far. The first six months are usually when most people will quit. Don’t feel bad about it; everyone does. But if you want to continue, you need to find some motivation for yourself—or at least a way to motivate yourself that won’t cost anything more than time and effort. Consider picking a month at random, such as April or August, and telling yourself that if you make it until then (and still want to be in crypto) then you can do whatever your reward is.
Choose your cryptocurrency
There are over 500 different types of cryptocurrency, but if you’re new to crypto trading, it’s best to avoid coins with smaller market caps. In order to make money with cryptocurrency, you need to buy coins when they are cheap and work hard for them by getting them on an exchange and HODLing (i.e. holding) until you can sell them at a higher price; that requires research and tracking changes in market cap daily or weekly. If it takes more than 3 months for a coin that cost $1 USD in June 2018 to reach its $10 USD goal as per your research above, then it is still too early for you to invest that money into buying those coins.
Do research before investing
Many cryptocurrency newcomers fall into a familiar pattern: They read about one particular token, become enamored with its potential, and then sink money into it. If that investment doesn’t pan out as they hoped, they move on to another coin — and another. Before long, their portfolio is littered with losers. Learn from their mistake: do research before investing any money in a cryptocurrency project. Find out what issues other users have encountered when dealing with that specific currency or platform; consider how likely it is to succeed (or fail) based on real-world factors, and ultimately decide whether it’s right for you — not just now, but also in three months or a year.
Watch your investment grow (or fall!) over time
If you bought $100 of bitcoin on January 1, 2013, it would be worth about $1.4 million today. However, if you gave up on bitcoin after your first month and stopped tracking it in early 2014 when its price fell below $100 per coin, that same $100 investment would now be worth just under $7,500—still not a bad return on your initial investment of time and money!