When's the best time to buy cryptocurrency? Start here
Whether you’re buying property or putting money into the stock market, nothing is risk-free when it comes to investing. This is especially true for cryptocurrency, which is a volatile form of investment by its nature.
Tax Day is almost here. Have you received, sold or exchanged any virtual currency in 2021? If so, you’ll have to report it on your taxes. Tap or click here for more information and tips in our report.
Bitcoin hit an all-time high last year and has come down considerably since. The concern over the market leader affects thousands of cryptocurrencies below it. Everyone has their strategy for investing in crypto, but a few basic tips can help anyone do better in the long run.
Before we dive in, this is not financial advice. Cryptocurrency is inherently risky, and you should never invest money you are not willing to lose.
Leave your feelings at the door
In May last year, Elon Musk tweeted that Tesla was suspending vehicle purchases made with Bitcoin because of the effect of its mining on the environment. He also said that Tesla would not be selling any Bitcoin itself. This caused Bitcoin prices to tumble, and panic sellers unloaded their digital assets in response.
This is an example of emotional investing — attempting to take advantage of a moment to see fast gains or minimize losses. We see these trends all the time, even outside of digital currency.
Keep your emotions out of it. Don’t jump onto any trends without doing your research first. If you let anxiety and fear of missing out sway your choices, your future in crypto will be a short one.
Think ahead
When the market is on a downward trend, it’s an excellent time to evaluate your long-term goals. Do you have an exit plan to take out some or all of your profits? Do you have a number in mind that you want to reach? Or do you consider your investment untouchable for the foreseeable future?
Reflect on your investment and why you started it to help make the right decisions during a downturn. Again, don’t panic!