The past decade has seen a massive increase in cryptocurrency investments and usage. Surveys show that in 2020 the percent of American people who’ve invested in cryptocurrency is 17%, with many estimating that it has risen since then. This isn’t even mentioning the many more people from all around the world who have invested in the crypto market.
With this much success, it is no wonder that so many people are becoming more and more interested in the world of cryptocurrency. New wide-eyed investors are dipping their toes into crypto investing, hoping for a slice of the pie. This leads many to bite off more than they can chew, however, and become overwhelmed by one of the challenges that every investor faces. In hopes that we can help you overcome these challenges, we will look at three of the main ones that new investors face, and explain how to move past them, so you can get the best return on your investments.
A common challenge, that most new investors face, is the stress caused by the fluctuating prices of many cryptocurrencies. Many inexperienced investors make the further mistake of letting this stress influence their private lives, straining relationship with friends, relatives, and loved ones.
As an investor, you must separate the stress from your private life, as introducing this stress to your private life will lead to straining the relationship with your closest friends. This will only further stress, and lead to making more bad decisions. To that end, we have two pieces of advice to help you overcome stress caused by crypto investments.
The first piece of advice is to look into stablecoin. Stablecoin is a form of cryptocurrency with a stable price, commonly valued at a single US dollar. This form of cryptocurrency offers all of the advantages of using digital currency, but also does not suffer from volatility and fluctuation.
The second advice is to look into trading sites. Crypto trading sites like https://bitcoin-billionaire.net/ offer a wide variety of ways which help to combat the stress caused by fluctuating prices. For one they offer beginner investors tutorials on how to invest in cryptocurrency properly. Not only that, but they also use Artificial Intelligence technology which reads and predicts the volatility and fluctuating prices on the crypto market, and informs the user on the best investments.
Another common mistake that many new investors make, is a common mistake that most young people make. That is to come into investing with a hot-head. A common story among young investors is that they sold all their assets when the prices started dropping, only to have them rise drastically in the next few days, or vice versa.
Patience is the most important trait that any investor can possess. When you see a drop in value, rather than jumping to conclusions, or being driven by your first impulse, stay your hand, wait a day, look into why the price has dropped, and then make a decision. Just remember the saying “cool heads will prevail”.
Fear of missing out is a form of anxiety, stemming from the idea that others are getting something out of life, which you are missing out on. It is one of the most common mistakes that new investors fall prey to. Often times, new cryptocurrencies become popular on the market, and lure prospective investors to purchase. This is often followed by a drop in price, and lost investments.
The best way to combat FOMO is to remember not to fall for fads and trends, and give yourself some space and time before you start investing in a new cryptocurrency.