Did you know that the market capitalization for crypto reached over $2 trillion in 2021? So, it comes as no surprise that people from all over the world have started expanding their investments into cryptocurrency. But, cryptocurrency has a lot of investment risks and rewards, so newcomers do well in building crypto investment plans before jumping into the crypto market.
Would you like to learn the ins and outs of investing in cryptocurrencies? If so, be sure to read until the end since we’ll give you a beginner’s guide to investing in crypto coins!
Diversify Your Investment Portfolio
If you want to get a decent ROI (return on investment), you’ll need to start diversifying your portfolio. Unfortunately, many new investors limit their profits by only having one or two coins in their portfolios. The good news is that there are plenty of Stablecoins and Altcoins that’ll help you get to the top.
Here are some you should consider adding:
- ETH (Ethereum)
- MATIC (Polygon)
- BTC (Bitcoin)
- DOT (Polkadot)
- SOL (Solana)
But of course, you don’t diversify too much, or you may end up losing a significant chunk of your crypto investment profits. That’s why most crypto experts suggest that you limit your portfolio to no more than six different coins.
Choose an Exchange Platform
An essential aspect of building a crypto investment plan is to pick an exchange platform that’ll make buying, selling, and transferring your assets a breeze. So, make sure you find a platform with many options for cryptocurrencies since that’ll help you diversify without needing to use another app. Here are some of the best ones you can use for your crypto needs:
- TradeStation Crypto
- Robinhood Crypto
- Webull Crypto
Moreover, you should keep in mind that some platforms may charge a certain percentage for any transaction you perform, which may lower your overall profits.
Develop an Exit Plan
More often than not, new investors solely focus on buying cryptocurrency and forget about selling it. And the issue of not having a well-thought-out exit plan is that you may miss out on profits, especially since the crypto market is highly unstable. So, make sure you take time to think about how you’ll sell your crypto once it reaches a certain price.
For example, some people like using Bitcoin ATMs to sell their crypto since they usually offer a low transaction rate when selling their coins. Moreover, some ATMs let you buy more crypto, so you can easily start investing again! And if that’s something that interests you, be sure to visit https://www.bytefederal.com/buying-crypto-at-a-byte-federal-atm-dont-forget-this/ for more information.
Follow These Tips When Building Crypto Investment Plans
As you have seen, there are a lot of factors you should consider while building crypto investment plans. But, of course, creating a successful investment plan takes time and dedication, so don’t give up if you don’t see results! And don’t forget to bookmark this guide so that you can refer to it always.
Would you like to learn more tips and tricks about crypto trading? If so, feel free to browse through our other crypto-related posts before you go!