Many beginners rush to invest in cryptocurrency at the wrong time — when speculative buying reached the madness, the exchange is overloaded, and the prices are on the verge of the next collapse.
And this is bad for two reasons: first, they lose a lot of money, then they lose interest and they leave the game, missing out on truly great opportunities.
To avoid this double disaster (and others) for both beginners and experienced investors are recommended to follow a few basic principles of investing in cryptocurrencies:
First, don’t make large bets. Do not place in cryptocurrency more than 5% of liquid assets.
Secondly, beware of parabolic surges. Yes, it’s tempting. But this is the worst time to buy. Instead, add a small position in local minima. Given the huge future potential of this new form of money, it would be nice to create a portfolio of the best currencies.
Third, the most promising cryptocurrencies is not always the largest. Some of the most popular, such as Bitcoin can bring you good money. But this does not mean that it is the coins that offer the best combination of investment potential and advanced technologies. Look closely at EOS or NEO.
Fourth, make sure that your investment portfolio is not a weak cryptocurrency.
Based on the model of ratings Agency Weiss Ratings, which takes into account the risks and rewards of each investor, as well as technology and foundations of decision making 12 the following cryptocurrency can be called the weakest:
The rating scale the rating Agency Weiss Ratings of D is described as “weak” and E “the weakest”. The signs “plus” and “minus” indicate the upper and lower third of each valuation range, respectively.
- Auroracoin (D-)
- Gulden (D-)
- PotCoin (D-)
- Rise (D-)
- Electroneum (E+)
- Expanse (E)
- Matchpool (E)
- Novacoin (E)
- Comet (E)
- Megacoin (E-)
- Quark (E-)
- SaluS (E-)
Fifth, do not store your cryptocurrency on an exchange. It makes you vulnerable to hacker attacks. Instead, move cryptocurrencies in the wallet, which is controlled by its private key.
Finally, always assign a successor. Inheritance is not only real estate and cars. If with you something happen or you just forget your keys, someone you trust will help you to recover data.
In January, the Agency Weiss Ratings issued a list of investment attractiveness of cryptocurrencies.
Bitcoin received a rating of C+. A rating of B was assigned to Ethereum and EOS. Cardano, NEO and Steem, got 4 minus (B-), while surpassing Bitcoin. The highest rating was not assigned to any cryptocurrency.
The Weiss Agency explains that the ratings of A and B is equivalent to the recommendation “buy”. Evaluation is analogous to the recommendations of the “HODL”, and E, and D — means “to sell”.