05 Virtual currency investment experiences for F0 investors
In investing, you cannot completely eliminate the risks that arise, whether internal or external. The same goes for the virtual currency market, if you join without knowing the unpredictable risks, the risk of bankruptcy is very high. Immediately refer to 5 virtual currency investment experiences of experts in the article below to proactively invest more effectively.
Risks when investing in virtual currency
Many people have had to fall into bankruptcy because of virtual money, even “sharks” have to escape if the market shakes. The digital currency market is constantly changing, in just a split second your money can “evaporate”.
In the first 6 months of 2022, hundreds of virtual currency millionaires disappeared overnight. To be able to overcome market fluctuations, you need to understand and anticipate potential risks:
- Risks from the market: The increase – decrease in price of digital currencies represents the supply and demand of the market. Impacts from interest rates, issued policies, ICO project terms, internal news, technological breakthroughs,… cause the value of virtual currencies to change unexpectedly. There are controllable or uncontrollable factors that can only reduce their impact on your finances.
- Security risks: When participating in the virtual currency market, security is always a top priority. Because all activities are performed on the internet, if you do not set up account security, wallet storage, etc., the risk of money being stolen is very high. Trading on unreliable exchanges or accessing malware can also cause you to be hacked, lose your private key, leak information, etc.
- Legal risks: Cryptocurrencies are not yet truly accepted as currency in many countries. The state and government are always looking for ways to regulate and impose laws in many forms to limit the use of cryptocurrencies in transactions to prevent money laundering, illegal trading, tax evasion, etc.
5+ Mistakes that lead to bankruptcy because of virtual currency
Tracking mistakes during the virtual currency investment process helps you gain valuable experience. If you know where you are wrong, you can adjust and change more correctly, thereby gaining your own virtual currency investment experience.
Whether you are a new investor or a veteran investor in the virtual currency market, you need to pay attention to 5+ serious mistakes that lead to bankruptcy when investing in virtual currency below:
No market research
This is an easy mistake to make, especially with a new F0 entering the market. Many people do not know how to filter information, find and analyze information because there are too many things that a new investor will have to access, from project information, transaction details, price fluctuations, and activities. investing in the market,… or simply lessons on how to invest, choose virtual currency, place orders, advice, how to choose an exchange, create a wallet.
Therefore, many people cannot grasp how the market is fluctuating, whether it is increasing or decreasing, what is causing this change, and what effects it will have if they invest. Without researching the market and placing a trade order in a hurry, you will lose money when the market is in recession, which will lead to bankruptcy in a short time.
Invest according to the movement
This form of investment is very familiar to those who do not have much experience. When you are having to filter information between thousands and thousands of data, you suddenly see a hot coin that many people are promoting and calling for investment.
You may not believe it, but if too many people choose that coin, you will question it and wonder if you should participate? And often at this step, most traders decide to invest according to the crowd.
In fact, there are also cases where following crowd psychology succeeds, but this number is very small compared to losses. Especially when you are scammed by a group of people with a sophisticated plan to lure investors into investing in a “junk” coin.
Do not cut losses immediately after exceeding the safety threshold
Cutting losses is not simple if you do not have experience in the market. But if you work hard to explore and learn, you will use stop loss to protect your assets. Many virtual currency investors fall into bankruptcy because they do not cut losses when they exceed the safety threshold. This market fluctuates very strongly every second, just one second delay is enough for money to disappear.
Regardless of the market, you should determine a safety threshold during the investment process, especially the digital currency market. Many traders believe that, if the coin’s price has dropped past the safety threshold, they will still try to absorb losses because they expect the price to turn around.
According to actual transaction history, the prices of strong coins will increase again, but it takes a very long time to break even. Not to mention new coins and junk coins that only appear for a short time and then disappear. If you cut your losses before exceeding the safety threshold, you will at least keep part of your finances.
Do not use technical analysis charts
Technical and analytical charts are very important in the investment process, because they help you get a detailed view of your portfolio, evaluate project performance, and make appropriate buy/sell decisions.
Many veteran investors rely on charts to evaluate a specific coin, thereby looking for opportunities to achieve the desired profit. It will be a pity if you do not apply these charts in your investment process.
Besides, new F0 participants do not know how to use the chart because it is difficult to fully apply and understand, and easily get discouraged because of the loss of time and effort. So people ignore the chart and focus on other information or trade according to crowd psychology. This is very dangerous and risky when playing virtual money.
Always want to receive quick and easy profits
Who invests and doesn’t want quick profits, especially in a dynamic market with 24/7 transactions like virtual currency. You can quickly gain or lose quickly, before you know it, the transaction is successful. Therefore, the concept of investing in virtual money to get rich quickly is completely understandable. But it is an investment that requires time and effort.
Thousands of people create investment accounts every day, thousands of people place orders, but how many people get the desired profit and become rich thanks to virtual money? You should not bet your money on a risky field, especially if you do not have much experience and knowledge.
The mentality of wanting quick and easy profits will cause large financial losses for investors. When you lose everything, you can only leave the market and find another opportunity, but you can’t change anything.
05 Valuable virtual currency investment experiences
To avoid making the above mistakes, you should spend time researching and researching carefully before investing. Immediately refer to the following 5 valuable virtual currency investment experiences:
Choose the appropriate form of virtual currency investment
If in stocks, you can buy and sell stocks, bonds, fund certificates, etc., then in the digital currency market, you can trade coins directly on the exchange, stake coins, and save money. coin, coin mining,… A series of virtual currency investment forms are launched to satisfy the needs of each trader.
Depending on your risk appetite, you will find and choose a suitable type of investment. If you prefer to trade directly to enjoy price differences, then refer to the form of buying – selling directly on the floor; If you like safety and long-term profits, you can participate in the form of staking coins, depositing, lending coins, …
Investors should experience all forms of investment to know what they are and whether they are suitable for them or not.
Monitor and filter correct investment information
Every day, hundreds of new ICO projects are introduced, many coins are listed on the exchange, and news about the cryptocurrency market is even more vast. You will spend a lot of time reading all the news in this field. Without careful selection, you will only waste your time.
Find the right information you need, read and research the right focus to help you understand the problem and draw accurate conclusions. In investing, only by seizing opportunities faster than others can you earn perfect profits. If you know how to filter information, find and discover reliable data, investors will improve efficiency in finding information. earn your profits.
You can learn how to search for information, read available analysis articles, follow websites or newspapers of ICO projects, coins, electronic exchanges, etc. Many newspaper sites specialize in updating market news. Finance every day, this is a great data treasure for you to know every corner of virtual money.
Below are some reputable websites, providing useful information that many investors choose:
- Finhay: This is a useful website about personal finance, stock investment, and cryptocurrency, chosen by many people. The content at Finhay is very diverse and continuously updated, providing investors with the hottest information about the financial/cryptocurrency market and investment experiences and advice from experts. In addition, Finhay also provides safe financial investment solutions for investors with small and medium capital.
- Coin68: This website provides the latest information about most virtual currencies on the market today. In addition, you can also refer to market indices and in-depth topics analyzed and commented by experts. Coin68 also has a Youtube channel, providing investors with extremely easy-to-understand and interesting investment and trading instructional videos.
- Blogtienao: This is an information channel chosen by many investors when consulting knowledge about cryptocurrency investment. Here, you can learn basic to advanced knowledge about crypto. Blogtienao’s information is continuously updated and highly accurate.
According to the virtual currency investment experience of many experts in finding information, you should determine what your investment goal is, choose a suitable form and desired coin, then go deeper into research. Instead of reading in confusion, read whatever you see. This helps save time, understand investment objects, analyze in more detail and find better investment opportunities.
Focus on experiencing and accumulating experience first
As mentioned above, if you want to find quick and easy profits in the virtual currency market, the risks you face are very high. The best way is to go slowly but surely, focusing on experiences to accumulate experience first.
During the process of investing, you will discover many cases and situations due to market fluctuations. You clearly understand the operations in placing orders, how to use analytical charts, read market data, etc. Once you get used to it, you will have experience when making many mistakes. Don’t let yourself make those mistakes again. learned many useful lessons.
Experience is an important part of investment success, especially in a very dynamic market, the mentality of wanting to win quickly and win quickly needs to be changed. Articles about the investment experiences of many predecessors are also a way for you to avoid making serious mistakes.
Learn to spread risks
In investing, you should not put your eggs in one basket, that is, you should not put your money into a single coin. This will significantly disperse risk, you need to build an effective investment portfolio to “survive” the market shock. This is an important virtual currency investment experience but is often overlooked by many people.
For example, if you have a portfolio of 4 coins ETH, BTC, BNB, ADA. Suppose BTC is devalued due to the FED – the US Federal Reserve Bank increasing interest rates, at this time even though your money will be affected, at least there are still 3 other coins for you to exist in the market. On the contrary, if you only focus on BTC, your money will decline after this fluctuation and have to wait a long time to pay back.
How to spread risks and still achieve good investment performance? That means that even if you divide your finances, the profit is still good compared to focusing on one coin. The best way is to find and select a list of reputable coins:
- It is necessary to find, research, and analyze carefully to choose a coin among thousands of others on the market.
- Build a portfolio that suits your finances, evaluate your risk appetite to set an appropriate capital division ratio. You can spend 40 – 50% of your capital on large, stable coins, 20% on potential coins, 10% on new coins, etc. This ratio depends on each person’s assessment and needs. .
- Adjustments and changes are needed after a period of time to remove and replace with better coins. You can also monitor investment performance, safety threshold of the portfolio and make exclusions and additions when necessary.
Choose a reputable virtual currency exchange
The trading floor is where concentrated investment activities take place with a huge number of participants. Cryptocurrency buying/selling activities take place entirely online, so the risk of account hacking and data theft may occur.
If you invest in a less reputable or fraudulent exchange, when linked to the wallet address containing your electronic money, your money will be lost without realizing it. To solve this problem, you must first secure your own information: from account, wallet address, OTP code, etc. Many people choose to use cold wallets or store them in books or paper rather than on computer.
Next, you need to find a reputable trading floor to trade with peace of mind and protect user interests if any problems occur. You can refer to Binance, Coinbase Exchange, Gate.io,… These are exchanges with a large number of users, are rated highly reputable and safe to invest.
Taking the time to learn thoroughly about a specific field helps you feel secure about your finances, then more confident in finding investment opportunities. With the above 5 virtual currency investment experiences, Finhay hopes readers will find the desired profit level in the virtual currency market. Don’t forget to pay attention to mistakes when investing in virtual currency so you don’t make them, wasting money and time!
