ad
Trade 100 Bonus - the best offer on Forex market

5 Questions to Ask Yourself Before Becoming a Crypto Trader

Updated: 13 July 2020 | 02:32 PM

Over the past few years, the cryptocurrency industry has exploded. The value of many cryptocurrencies skyrocketed, as did the amount of news coverage that the industry got in both technology and finance spaces. All of that news and growth have led to millions and millions of people across the world becoming interested in bitcoin trading.

While some will just keep up with the news and do a little reading, others have decided that they want to start investing in the space. However, before you dive in headfirst and invest thousands in Bitcoin or another favorite cryptocurrency of yours, there are some things to consider. This article is going to pose to you 5 questions that you should ask yourself before deciding to become a crypto investor and trader.

Do I Have a Plan?

The first thing to ask yourself when deciding whether or not to be a crypto trader should be if you have a plan. If you go into any investment, especially in crypto, blindly, you risk losing a lot of money.

This plan can include everything from knowing which platform or exchange to use, as well as knowing when you want to enter and/or exit the market. You should also do a lot of research on the industry itself, and put a plethora of time into deciding which crypto assets to invest in, and how much to invest. However, just because you have a plan doesn’t mean things will always go according to it. So have a plan, but also be flexible and aware that the industry is relatively new, and anything could happen.

How Comfortable Am I With Risk?

Next, you need to examine how comfortable you are with risk. While all investments carry a sort of risk, the cryptocurrency space takes this risk to the next level. Some cryptocurrency can often go up or down by multiple percentage points in a single day. You could wake up and see your asset worth 11% more than it was last night, only to see it down 7% by the time night comes around. 

That is more movement than many other investments will see in months, let alone in a few hours. While you can certainly win big in cryptocurrency, you can also lose big. This can be very stressful for some people, so you need to be sure that you are ready for that. Also, if you decide to invest in crypto, be sure to only invest money that you can handle losing. Investing your life savings in such a risky space could have dire consequences if your chosen cryptocurrency doesn’t find success.

Am I Willing to Keep Up?

The cryptocurrency industry is still relatively new, and therefore, it is constantly changing. As a result, there are many new developments coming about and news that you need to keep up with. This could be the creation of new platforms, new laws being put in place, partnerships being announced and so much more. If you want to have the best chance of finding a diamond in the rough or selling an asset before the ship sinks, you need to check the news in the industry daily.

It is also important to keep up with public opinion and trends. While it shouldn’t influence your investing, it is a good idea to get an understanding of what those in the market think. If you are not willing to keep up with the news and new developments to learn more about the space, investing in crypto might be not right for you. 

Do I Know How to Choose the Right Investments?

Another thing to ask yourself ahead of making an investment is whether you actually know how to choose the right cryptocurrency to invest in. Some of these investments have made people millionaires, while others have cost them a lot of their hard-earned money. So how do you choose which is the right investment?

Well, it requires a lot of research. You need to investigate the technology or idea behind the cryptocurrency, the team that created it, what their future plans are, their competitors, and other pertinent information. While there are no “sure things” when it comes to investing in crypto and anything can happen, doing the research can generally help individuals make more sound investments, based on stats or data, rather than a gut feeling.

Will I Be Able to Spot a Scam?

It would be great if all cryptocurrency-related opportunities and investments were legitimate, that unfortunately isn’t the case. There are hundreds of cryptocurrencies, ICOs and blockchain platforms that are either predatory in nature, or a full on scam. Thankfully, there are some warning signs of a fraud that you can watch out for.

These include making unrealistic claims, having a lack of technical or background information, being secretive about their team, promising unrealistic returns. Some are even similar to Ponzi schemes and pump and dumps. If you feel uneasy about a crypto asset, ICO, or cryptocurrency, it is a good idea to leave it alone.

However, it is important to keep in mind that not all scams will have these telltale signs. Crypto scams have cost investors millions, and many do a good job of making their opportunity look realistic, promising, and lucrative.

If you aren’t sure of your ability to spot a scam, it’s probably not wise to invest in an industry that has a fair share of them. Of course, that is unless you plan to invest in some of the big names in the space like Bitcoin, Ethereum, and others.

In conclusion, we hope that this article and the questions covered in it have been able to help you decide whether or not being a crypto trader is right for you.

Avatar Default

Forex Welcome

14 July, 2020 | 01:18:AM
If you aren’t sure of your ability to spot a scam, it’s probably not wise to invest in an industry that has a fair share of them. Of course, that is unless you plan to invest in some of the big names in the space like Bitcoin, Ethereum, and others.
1.0/5

Add your comment

See more similar items

Fed's Daly says she worries pandemic will widen racial and gender inequalities

Fed's Daly says she worries pandemic will widen racial and gender inequalities

San Francisco Central bank President Mary Daly said she is stressed the pandemic will augment sex and racial imbalances and said policymakers need to ensure the recuperation is comprehensive.  Daly said the emergency "amplified" holes that existed ac
Chinese banks broadened 992.7 billion yuan

Chinese banks broadened 992.7 billion yuan

Chinese banks broadened 992.7 billion yuan in new yuan credits in July, down from June and missing the mark concerning experts' desires.  Examiners surveyed by Reuters had anticipated new yuan credits would tumble to 1.20 trillion yuan in July,
Saudi Aramco is pushing forward with plans to help rough yield limit by 1 million

Saudi Aramco is pushing forward with plans to help rough yield limit by 1 million

Saudi Aramco is pushing forward with plans to help rough yield limit by 1 million barrels for each day (bpd) to 13 million bpd regardless of cuts in capital consumption this year and one year from now, the state
The dollar edged higher in early European exchange Monday

The dollar edged higher in early European exchange Monday

The dollar edged higher in early European exchange Monday, following Friday's better than anticipated business report. Be that as it may, gains are probably going to be brief as questions stay about the U.S. monetary recuperation.  At 3:05 AM
Saudi Arabia stocks were higher after the close on Sunday

Saudi Arabia stocks were higher after the close on Sunday

The best entertainers of the meeting on the Tadawul All Offer were Wataniya Insurance agency, which rose 9.98% or 3.30 focuses to exchange at 36.35 at the nearby. In the mean time, Takween Propelled Businesses added 8.19% or 0.70
Another good week for Bitcoin last week

Another good week for Bitcoin last week

Another great week for Bitcoin a week ago. The dollar value rose in excess of 5 percent, taking it to around $11,700. That ascent wasn't smooth. A blaze crash took $1,500 off the cost at a certain point, in
Qualcomm lobbies U.S. to sell chips for Huawei 5G phones

Qualcomm lobbies U.S. to sell chips for Huawei 5G phones

Chipmaker Qualcomm Inc is campaigning the U.S. government to disavow limitations discounted of segments to Huawei Innovations Co after the Chinese organization was boycotted by the US, The Money Road Diary investigated Saturday.  Qualcomm is campaign
Instagram crypto scams have rapidly increased this year

Instagram crypto scams have rapidly increased this year

Another rush of trick craftsmen are running amuck on Instagram, hurting genuine crypto influencers.  Since the start of 2020, there have been over 1.3 million posts including "#Coinbase" hashtags on Instagram, huge numbers of which were made by crypt
Nomura Research Institute offers price estimates for crypto assets

Nomura Research Institute offers price estimates for crypto assets

Nomura Research Institute, Ltd. (NRI), the main supplier of counseling administrations and system arrangements, declared today that it has created and given value estimation to crypto resources, called the "NRI/IU Crypto Resource Reference Cost, in
Datadog sank 14% on Friday in the wake of recognizing more slow development

Datadog sank 14% on Friday in the wake of recognizing more slow development

Datadog sank 14% on Friday in the wake of recognizing more slow development from existing clients, regardless of beating income desires and boosting direction.  The income per portion of 5 pennies contrasted with the normal 1 penny for every
The S&P 500 withdrew from a close to half-year high

The S&P 500 withdrew from a close to half-year high 

The S&P 500 withdrew from a close to half year high in rough exchanging on Friday with information indicating a sharp log jam in U.S. work development, while U.S. China pressures raised with President Donald Trump's transition to boycott
Grayscale Ethereum Trust Files To Become An SEC-Reporting Co

Grayscale Ethereum Trust Files To Become An SEC-Reporting Co

On August 6, Grayscale Ethereum Trust documented to turn into an SEC announcing organization.  In the midst of the Ether (ETH) bull run, Grayscale Speculations intentionally chose to make its Ethereum Trust an SEC revealing organization. The organiza
Indian crypto users are more vulnerable to hacks as compared to other users in the world

Indian crypto users are more vulnerable to hacks as compared to other users in the world

Crypto clients in India are about multiple times as likely as advanced cash clients somewhere else to experience the supposed "cryptojacking" assaults.  Crypto tricks are on the ascent around the world. Be that as it may, as per the
Really Free $30 No Deposit Free Trading Credit on Tickmill

Really Free $30 No Deposit Free Trading Credit on Tickmill

Tickmill is happy to inform all new clients who can take an opportunity $30 No Deposit Welcome Bonus. New clients have the chance to trade with free trading funds, without having to make
Crypto.com Introduces Recurring Buy Feature

Crypto.com Introduces Recurring Buy Feature

Crypto.com clients can now consequently purchase Bitcoin just as effectively convert their dollars into Bitcoin on a repetitive premise.  This is made conceivable by the recently presented repeating purchase include on the Crypto.com Application.&nbs
Dollar Retreats Over Continuing Worries About U.S. Recovery

Dollar Retreats Over Continuing Worries About U.S. Recovery

The dollar was down in Asia on Wednesday morning, bearing in mind the end goal of a U.S. financial recuperation from COVID 19 proceeding to decrease. Financial specialists withdrew from the greenback as the U.S. Congress neglected to arrive
RoboForex expands access to multi-asset investment platform R Trader in Belarus

RoboForex expands access to multi-asset investment platform R Trader in Belarus

The universal broker RoboForex declared empowering access to its multi resource stage R Dealer for the organization's customers situated in the Republic of Belarus. The National Forex focus Belarus conceded the organization the relating consent to utilize
Rupee Closes Nearly Unchanged At 75.04 Against Dollar

Rupee Closes Nearly Unchanged At 75.04 Against Dollar

INR Versus USD: The rupee moved in a restricted scope of 19 paise against the US dollar to close hardly bring down for the day at 75.04, in the midst of shortcoming across most Asian monetary standards. Investigators state
Weak dollar no boon for emerging markets this time

Weak dollar no boon for emerging markets this time

Commonly a shelter for developing markets, the current year's dive in the U.S. dollar may neglect to support the building up world's possibilities as the furious pandemic hits monetary action, expands neediness, and uncovered powerless policymaking. 
Current costs aren't sufficiently high to reestablish U.S. creation

Current costs aren't sufficiently high to reestablish U.S. creation 

Oil costs stay stable regardless of rising weight in the course of the most recent week. Monetary information from the US powered bearish opinion regardless of empowering information from the EIA. The U.S. economy is relied upon to have
WTI Crude Oil Under Pressure as OPEC+ Hikes Production

WTI Crude Oil Under Pressure as OPEC+ Hikes Production

As another exchanging week gets in progress, WTI unrefined petroleum costs are sliding lower as business sectors center around conceivable oversupply after OPEC and partners begin expanding oil creation since the start of this current month. At the hour
China forex regulator vows greater opening, eyes reform on PE deals

China forex regulator vows greater opening, eyes reform on PE deals

China will keep on growing money related market opening, including investigating changes to the standards overseeing cross outskirt venture the executives including private value reserves, the nation's unfamiliar trade controller said on Saturday.  T
Saudi Arabia stocks were lower after Sunday

Saudi Arabia stocks were lower after the nearby on Sunday

Investing.com – Saudi Arabia stocks were lower after the nearby on Sunday, as in the parts drove shares .  At the nearby in Saudi Arabia, the Tadawul All Offer unaltered 0.00% to hit another 3 months high.  The best
Binance Launches Crypto Trading Platform in Australia

Binance Launches Crypto Trading Platform in Australia

Binance, one of the biggest crypto trades on the planet, has recently declared the dispatch of an exchanging platform Australia.  As indicated by yesterday's declaration, the stage, which will be worked by an accomplice organization, will offer crypt
Dollar Slumps, Euro Has Best Month in a Decade

Dollar Slumps, Euro Has Best Month in a Decade

The dollar drooped in early European exchange Friday, heading for its most vulnerable month in 10 years, as dealers worried about the U.S. financial recuperation because of the proceeded with spread of the Covid 19 infection over the Midwest

Latest Forex News

Updated: 11 August 2020 | 10:21 AM
Updated: 9 August 2020 | 09:42 AM
Updated: 7 August 2020 | 05:21 PM
Updated: 5 August 2020 | 05:25 AM
Updated: 4 August 2020 | 06:17 PM
Updated: 4 August 2020 | 05:04 PM
Updated: 3 August 2020 | 05:25 PM
Updated: 31 July 2020 | 08:36 AM