The Bear and Bull abstract concept of cryptocurrency market / GIFX exchange. Investing in cryptocurrency, as seen by many wealth managers, ...
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| The Bear and Bull abstract concept of cryptocurrency market / GIFX exchange. |
And, now with the opening of the GIFX trading platform in two days time. We must assert here that the new crypto trading market has just begun for you to come on board! You must have heard about it and how people have made money in the past decade, months, or weeks so. Investing in cryptocurrency is fun, rewarding and sometimes can be disappointing too. The amount of profit you get in the crypto market in just one year will take more than ten years in the stock market. But with high rewards also come high risks. Here are the top 5 market-proven tips to safely invest in cryptocurrency:
1. Understand the market capitalization of the token
The first key thing to safely invest in any cryptocurrency is to understand the market capitalization aka the market cap of each coin/token. Market cap is nothing but the total net worth of all the coins or tokens outstandingly in circulation. The formula is calculated by multiplying the outstanding digital assets in circulation by the current price of the digital currency. The formula for market capitalization is:
- Market cap = share price x # shares outstanding
Now, you got homework to do to calculate the market cap of GIFA Token! The current price of GIFX is $21.60 and there are 20,100,000,000 GIFA Tokens (Twenty billion and one hundred million tokens) in total supply. The reason it is important is that some coins are less expensive for example Dogecoin ($0.310) and the newbies (Generation Z) tend to buy a lot of dogecoin and other shitcoins thinking that they will reach the price of bitcoin. But for those coins to reach the price of bitcoin, the coin market cap needs to reach more than that of bitcoin because of their unlimited coin circulation. Knowing the market of each coin will give an investor a tentative idea of how the coin will perform in the future.
2. Understand the utility
With 2021 being the year for crypto, the hype is all around us to see and make the right decision. Everyone is talking about crypto every day. We see new coins coming up each and every month. Most of them don’t usually have any use or intrinsic value and are just built for speculation and social media hype.
This is the reason, one needs to study and understand the utility of the coins, that you sought to invest in. For example, bitcoin’s best use case is that it is replacing gold as the best store of value and hedge against inflation due to its scarcity, ether aims to be the next Web 3.0 with all the future of the internet build around its ecosystem, etc. GIFA Token is a corporate cryptocurrency backed by physical assets, projects and it built on the decentralized blockchain ecosystem. Take a note that there are many coins that being hosted on Binance but not rooted on the blockchain.
Today 90% of all DeFi projects are built on the Ethereum blockchain. Cryptocurrencies like GIFA Token, aim to solve the economic gap problem between financial institutions and the unbanked masses with its fastest transaction rate and low cost of service. By researching each specific coin and its use cases, one can understand where to invest. To understand the potentials of each coin, one needs to get exposure. Test the water for yourself, don't wait to hear from people!
3. Diversification of portfolio
There is an ancient proverb that says “Don't put all your eggs in one basket”, yes this is true! Diversifying the investment is a recommendable idea of which every investor should follow in order to build the wealth of multiple streams.
It is always advised to put your money across multiple trading platforms so that if one coin loses its value, you can recover the loss from the other coins. Many crypto investors follow a 6:3:1 ratio strategy while investing, in this scenario, it means investing 60% of the money in Bitcoin, 30% in Ether, and 10% in GIFA Token for example.
Oftentimes our investment decisions prove to be wrong and especially when you are trading in your initial years. 95 percent of the traders lose more than what they gain due to non-vigilance and poor research. Sometimes the market just goes in an unexpected direction and suddenly everyone panicking. During a time like that, understand the ''Bull and Bear'' strategy to minimize the loss and maximize the gains.
4. Never invest more than you can afford to lose
Don’t invest with your next month's rent, you might end up homeless. One thing you have to understand while investing in any market is, the market doesn't care about your emotions. Don't invest today and expect to be rich tomorrow, good investment comes with patience and discipline! You may want to make maximum profit by investing all the money you have, but no one knows if the market will crash next hour or tomorrow. So before investing, understand the risk, make necessary calculations, and thoroughly observations.
A lot of people are buying cryptocurrency these days, and whether that's a good idea or a poor one is yet to be determined. The reality is that there are lots of potentials to make money with cryptocurrency, but as is the case with any investment, the risk of losing money very much exists.
5. Buy and hold
Another important investing strategy is known as "buy and hold." Specifically, I like to buy and hold the most valuable, stable, and good-performing digital assets that I think have some potentials to increase in value over the span of time. Frankly, speaking I am holding small potions of Bitcoin about (8900000 satoshis), 7600 DOGE, 4.5 ethers, and 1500 GIFA Token in my investment portfolio. I personally chose these digital assets for good reason, knowing the potentials they could have in long term.
Some people may ask, the question: How do I determine whether Dogecoin or GIFA Token is likely to gain value in the long run? For one thing, I can look at the company's standing and see how well it's managing its projects and unfolding trends surrounding these particular assets. The meme coin, Dogecoin is massively adopted by generation Z include Elon Musk and Mark Cuban the main driving power behind the Shiba token. I can also consider the extent to which the company is able to innovate, initiate as well as its competitive edge in the market like GIFA Holding ltd.
In fact, these are some of the factors I tended to invest in cryptocurrency, now holding more than $23,400 in GIFA Token. My goal isn't necessarily to sell any of those 4 digital assets at their lowest price. Since my objective is to buy - hold and eventually see its price go up. While people may regard cryptocurrency as a long-term investment since the value of cryptocurrency is apt to hinge largely on how widely accepted by the mainstream and becomes like a form of payment, and frankly, I have no idea how to predict the future with much accuracy but the digital assets are here to stay. There could no better rewarding than investing in GIFA Token, at this moment of initial coin offering (ICO)
GIFA Token is corporate-backed crypto solely managed by GIFA Holding LTD, an international company registered and domiciled in the Turkish Republic of Northern Cyprus (TRNC). GIFA Token accepts payment via Visa credit cards, Mastercards, PayPal, Bank deposit, Wire transfer including swapping with major cryptos like Bitcoin, Ethereum, Ripple, and others.