Everyone who’s had a chance to browse on their phones or computers will have known about cryptocurrencies by now. However, the question is, should you invest in cryptocurrency for 2022?
Here’s a short checklist on what you should do before spending your capital.
Do Your Research
Cryptocurrency trading relies on daily crypto news and live market updates, especially if you intend to move your assets every day.
In finding out more about cryptocurrency and learning the ropes, you can make a more informed decision in the end. However, you should also know about the risks involved.
Understand the Risks
Cryptocurrency trading is similar to trading other assets, such as stocks and Forex in that there’s always a level of risk involved.
Sure, the risk can be somewhat reduced or mitigated when you follow crypto news regularly and do bitcoin analysis where needed, but the general rule is that the money you spend should be expendable. This means you should still be able to live a comfortable life even if the money is lost.
Ask the Investment Question
The truth is that crypto trading or investing in Bitcoin and other popular crypto coins is not for everyone. Active investors will need to constantly be on the watch about breaking crypto news and be prepared to follow ethereum trends, among others.
Tech-savvy investors will also want to see where the platform is going with blockchain updates. These things require not just time but also effort on your part.
Long Term or Short Term?
Now that you’ve decided to invest in cryptocurrency for 2022, you’ll also have to plan your strategy.
If you don’t mind watching live crypto news and sitting in front of your computer for hours, then short-term trading is recommended. However, if you have a job and only a bit of time each day then long term trading is the recommended method of investment.
Angela is a senior editor at Dreniq News. She has written for many famous news agencies.