empty
29.10.2021 07:53 PM
Key factors to help you succeed in your crypto market investment

This image is no longer relevant

As you might expect, many investors are looking for this very gold vein, which will bring them significant capital premiums in the long term.

The cryptocurrency market is very unstable and volatile, it is very difficult to catch and find the very cryptocurrency that can shoot out after a certain period of time, based not on hype, but on fundamental data and demand for cryptocurrency.

Now that we are in a bull market, many people reproach themselves for not buying this or that cryptocurrency earlier at lower prices. There are 5 key factors that you need to pay attention to so that in the future when buying a cryptocurrency, there are no difficult processes.

You need to determine the ideal distribution of crypto assets

In his book, The Psychology of Money, Morgan Housel has always emphasized the ultimate importance of the game or process you choose. Investors can buy certain crypto assets, but each of them has different investment goals. Some people want to multiply their capital, while others want to do day trading in order to get a quick profit, you need to know what you want to get from the investment. It will help you think more rationally.

Decide which crypto assets you really need

After defining your main goals, you need to understand how much money you can invest in a crypto asset. For example, older people are not willing to take risks, and they can benefit from high-interest rates for stablecoins and stakes in a transparent manner. Bitcoin is the main and most interesting asset for aspiring institutions. Ethereum, on the other hand, provides tremendous innovation opportunities and limitless growth potential. Various altcoins such as Paragon, Solana, Polkadot can offer great potential gains, but also huge associated risks.

Find an opportunity for yourself to buy a small portion of the cryptocurrency

Do not chase after large volumes at once. First, you will need to buy a small amount of one or another cryptocurrency. So you will become more familiar with the fundamental basics of cryptocurrency, the ecosystem, its capitalization, daily turnover, and so on.

You should spend the money that you are ready to lose for a long time

If you want to invest without huge risks, you should use the average dollar value of the position, and instead of calculating the ups and downs of cryptocurrency and going all-in, you should allocate some of your income to cryptocurrency and buy with the money that you are ready to lose. If the cryptocurrency shoots, then you will receive dividends, but if it falls, then it will not be a big blow for you.

Be ready for sale

Every big sell-off and liquidation of assets is followed by a bullish rally. This month is a good example of this. Bitcoin is up over $20,000 in a month. Many cryptocurrencies are subject to speculation and depend on many different factors, both on the crypto market and beyond. A verified cold mind and patience will always come in handy for any investor. Institutional investors can buy cryptocurrency with the money that they are willing to lose, as well as place a limit order on various exchanges so as not to lose a lot of money.

The last year has really become a landmark for various altcoins. Many altcoins that are built on the Ethereum blockchain have huge growth potential. In decades from now, the cryptocurrency world may indeed change the lives of many ordinary citizens. The main mistakes of the crypto market are panic, as well as the short-term focus of investors, who, in any panic, begin to lose their composure and begin to massively sell off their assets.

Vitaly Kolesnikov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

BTC/USD Analysis – April 22nd: The Moment of Truth

The wave structure on the 4-hour chart for BTC/USD is quite clear. After completing an upward trend consisting of five full waves, a downward segment began forming, which currently appears

Chin Zhao 11:49 2025-04-22 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 22

Bitcoin Returns to the $88,000 Zone, but Ethereum Is Facing Challenges Yesterday's sell-off during the U.S. session, once again triggered by a decline in American stock indices, was offset

Miroslaw Bawulski 08:18 2025-04-22 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 21

Bitcoin and Ethereum, having spent the entire weekend moving sideways within a range, surged sharply during today's Asian session. The rally was triggered by rumors that U.S. Federal Reserve Chair

Miroslaw Bawulski 09:03 2025-04-21 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 18

Bitcoin and Ethereum remain within their sideways channels, and the inability to break out of these ranges could jeopardize the prospects for a broader recovery in the cryptocurrency market. However

Miroslaw Bawulski 09:00 2025-04-18 UTC+2

Interest in Bitcoin and Ethereum Is Returning

While Bitcoin and Ethereum still struggle to regain strength and re-enter a bullish market—constantly alarming investors and traders with sharp declines toward the lower bounds of the sideways channels they've

Jakub Novak 06:52 2025-04-18 UTC+2

Technical Analysis of Intraday Price Movement of Litecoin Cryptocurrency, Thursday April 17, 2025.

After successfully exiting the Ascending Broadening Wedge pattern on the 4-hour chart of the Litecoin cryptocurrency followed by the appearance of Divergence between the Litecoin price movement and the Stochastic

Arief Makmur 06:40 2025-04-17 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 16

Pressure on the cryptocurrency market returned yesterday after traders and investors triggered a sell-off in the U.S. stock market. As I've noted repeatedly, the correlation between these two markets

Miroslaw Bawulski 09:01 2025-04-16 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 15

Bitcoin strengthened its position fairly well, nearly reaching the 86,000 level. Ethereum also showed gains but lost them by the end of the U.S. trading session. With easing tensions over

Miroslaw Bawulski 09:08 2025-04-15 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 14

Over the past weekend, Bitcoin and Ethereum demonstrated decent resilience, maintaining a chance for further recovery. While from a technical standpoint, those chances may appear rather slim, trading within

Miroslaw Bawulski 09:12 2025-04-14 UTC+2

Bitcoin – Technical Analysis Overview

Last trading week, the market indicated a potential opportunity for bulls to regain control. Whether this potential is realized now depends on whether the bulls can exit the previous consolidation

Evangelos Poulakis 06:37 2025-04-14 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.