The cryptocurrency market is still in its infancy and one must keep this in mind when approaching it. Investing in a young market has its advantages, the most desired one being high ROIs. Nonetheless, as uncertainty and volatility remain key aspects of this market, one must not over-expose themself or over-invest. Any unfavorable regulatory decision can pose as a significant setback and take time before further progress towards adoption.
Many people claim to be invested in crypto “for the tech” and are very little versed in the actual underlying technology. As a consequence, any bearish moves puts them in a state of panic. Ultimately, any investor’s primary focus is capital appreciation and in this space, the odds of the latter are immensely put in favour of the one who delves deeply into research. Research ranges from fundamentals to technicals and everything in between. We must remember that blockchain and cryptocurrencies remain a new field, hence new problems and solutions are found on a daily basis, we remain in discovery mode. As a result, learning doesn’t stop.
Access to cryptocurrency trading is easier than any other market, for that reason many amateur traders prefer it. Without proper guidance and knowledge, new market participants are prone to basic “retail traders” errors. Although this market is new, the basics of financial markets still apply. Therefore, one’s research mustn’t be limited to blockchain tech and subjects revolving around cryptocurrencies. All markets share similar traits and many were successful traders before cryptocurrencies surfaced. Consequently, learning from those who succeeded before us is a step in the right direction.