The last two years have been quite fruitful for cryptocurrency investors. Extreme volatility, new industry features, influenced by investors are usually committed to long-term investment in cryptocurrencies. In this context, one of the most pressing issues facing all investors is how the cryptocurrency industry is expected to behave in the new year. It is almost impossible to predict or predict the market. However, there are certain rules that every investor should follow in 2022 to reduce risk and increase returns.
Unlike in 2021, the market is depressed in the new year. Most cryptocurrencies have lost some of their profits in recent years. However, the general mood is positive as the focus is on new lists. It is expected that in 2022 will continue the enthusiastic acceptance of the cryptocurrency, which was a feature of last year.
Each year comes with its own rules and investors need to take into account the rapidly changing dynamics in order to grow and make a profit. Here are some things all investors should do:
1. Research – Cryptocurrency
The most important understanding before investing in any industry is research. Do your research and get the latest information. Learn about the coin, the platform on which it operates, and the underlying technology. Feel free to contact the people who have been investing in the industry for the longest time.
2. Do Not Get Bogged Down
It often happens that the coin rises sharply and suddenly loses profit. Check to see if the asset is growing on its own or a bubble. There are indications that a simple tweet of influential personalities like technology billionaire Elon Musko can quickly create currency. However, if it is low in meat, it is likely to break down just as quickly.
Be patient and allow your investment to grow naturally over time. When in doubt, invest in market leaders such as Bitcoin, Ethereum and more. He has proven accomplishments. While many of the new coins offer opportunities for rapid growth in investment, they may also be closed.
If there is one thing for sure about the cryptocurrency industry, it is volatility. Keep this in mind when investing. It is not true that your investment will always increase, sometimes your assets will decrease. When entering the industry, keep this opportunity in mind.
5. Beware of Scammers
Scammers often try to take advantage of the large number of amateur investors who enter the industry from time to time. You may be contacted via email or SMS for an attractive “investment opportunity”. Look at all such offers with suspicion.
The Growing Cryptocurrency Market
The growing cryptocurrency market has attracted huge interest from new investors. The increase is so promising that new coins are added almost every month.
More than 16,000 cryptocurrency coins are now traded, according to market research agency CoinMarketCap. However, this rapid expansion is a cause for concern, as there are many coins that are issued only to overcome an existing trend or euphoria and to deceive or deceive investors with their money. How to distinguish between legal and illegal coins in such a situation?
To the amateur investor, most coins look similar in terms of their respective promise of return and the function they perform. An example of coin-related fraud in the industry was the Squid Game mark.
Launched after the huge popularity of the Netflix show of the same name, it gained value and lost at lightning speed. Developers have disappeared with million-dollar tokens, leaving investors high and dry.
However, there are some red flags that all investors should keep in mind when investing in a new coin – or mostly in the cryptocurrency industry. Here are some of them:
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