Investing in cryptocurrencies is a trend that has not stopped for a decade. Some people manage to acquire enormous wealth almost overnight, but there are those who need years to be able to reach some profit. It can be the result of bad strategy, reckless actions, and even unpopular ways of making a profit. But sometimes it can also be the result of poorly chosen cryptocurrency.
You must be wondering if that is possible? But since it is the subject of our article today, it means that such incidents have happened in the past and probably still happen now. Well, is there a way to recognize if your investment is going straight down? Or is there an opportunity to change the situation at some point?
Let’s look at a few possible scenarios:
1. You are trying to play it safe
There are so-called legends in the public that some cryptocurrencies are more secure than others, simply because their price does not change over time. But it is almost equivalent to classical money and the traditional economy. If you want to play it safe, then the crypto market is not for you.
We would recommend that you start experimenting with smaller cryptocurrencies, which have certain dynamics of price changes. That way, you can judge for yourself whether something is profitable or just a waste of time for you.
It would be good to be encouraged about your investments, but it is also okay if you think the crypto market is not your call. Swyftx is one of the best Cryptocurrency Exchanges on the market and has everything you need rolled into one platform.
2. Your portfolio is really poor
We will say at the very beginning that even a rich portfolio is not a sign that you are a successful investor in cryptocurrencies. In fact, it only shows that you have a certain market activity. This means that in addition to investing and trading, you also need to spend time reading, learning, and learning new things. You can absolutely read here or other resources, so you can enrich your portfolio with activities, but also with appropriate trading skills.
But if its expansion is missing, it is a sure sign that you are dealing with the wrong cryptocurrency.
3. You want instant success
People who want instant earnings often become victims of fraud. New cryptocurrencies, which have just appeared on the market, can be part of those scams. That’s why you have to be critical when you are offered something that guarantees huge success in an unrealistically short time. Practically it is a form of multilevel marketing and although the crypto market has such a concept in it, the goal is completely different.
Inexperienced investors are an easy target for these fraudsters. Therefore, if you are constantly investing in the same currency, and at no point do you have any visible benefit, it is time to change something in what you are doing.
4. You fall under the influence of the public
We often read how some celebrities invest in a certain cryptocurrency. This creates artificial hype and investors feel pressured to invest in that currency, without any benefit. If you notice something like this happening to you, it’s time to make a change.
Research the market yourself and see how you personally like the terms. There is no need to do anything, just because your favorite celebrity did it. In fact, every investor should have his own personal strategy so that he can apply or modify it, if necessary.
5. You are stuck to just one cryptocurrency
This may seem like a good and stable strategy. But we must disappoint you right away. Thus, you have constantly focused all your resources on that currency and you spend time and energy, even when there is no need for it. So, it would be nice if you could find some favorite cryptocurrencies.
That way you can constantly reinvent the realized profits into real goals. For example, if Bitcoin is doing well, it should not stop you from investing in other currencies. On the contrary, they can be your precious asset if something starts to happen to Bitcoin. It is good to keep this in mind so that you can react in time if things are going down.
6. You are constantly at a loss
Do we need to explain all this? Some cryptocurrencies are not destined to grow big enough. Therefore, a steady loss should be a clear sign that it is time to change your approach to investing. If you have the opportunity, give up what leads to permanent losses. This makes it more useful for you and the money you plan to invest.
7. You have no idea what to do with your cryptocurrencies
You have an enviable amount of cryptocurrencies, but you do not know what to do with them. This is the first sign that you are dealing with the wrong cryptocurrency. Although it once seemed like a successful deal, if you realized that there was really nothing to do with the money, then what was the purpose of all that investment?
Many cryptocurrencies have no exchange value, and cannot be approximated in fiat currencies, nor are they available on exchanges. Try to get the most out of that situation or at least save them, so that maybe in the future the situation will change. However, let it be an important lesson for you that not every hype means profitability and that although it is very large, the crypto market can be limited.
You probably already know that cryptocurrencies have no monetary value and are only valid in limited cases. But the hope that they will get some level of regulation remains among the people. We encourage you to think twice before investing your hard-earned money in crypto. Assess all the circumstances and based on that, draw an appropriate conclusion. It will really help you to avoid investing in the wrong currencies.
Be well informed about all the advantages and disadvantages and of course, judge for yourself what is best for you. Sometimes that assessment can mean complete avoidance of the crypto market, but that’s okay, as long as you are not at a loss.