5 ways to invest safely in the Cryptoworld

26.05.2021 | TOA Klub

Be cautious, be adaptable. We’ve used this phrase over a few communication pieces recently, but this placement just might be the most relevant yet.

Caution, adaptability, and research are key to success in the wild west of cryptocurrency.

Cryptocurrency can be volatile at the best of times. Last week catapulted Bitcoin into a rocky territory as it harbored a 30% drop in value after new the announcement of tighter regulations on digital assets in China and further tax compliance in the US. It rebounded on Monday and gained a 20% lift, however, these sharp shifts epitomise the turbulent nature of cryptocurrency, the weight of its influencers, and the need for research before risk.

1. Diversify

Crypto. Portfolio. Diversification. Three words to ensure that a plummet of value like last week won’t dissolve your wallet. Geographical, industry and timing diversification are all important ways to help boost your investment return whilst shielding against negative market swings.

Research into diversification is key, otherwise, poor performance can be a riskier game than putting all of your eggs in one basket.

2. Security

Hot wallets, cold wallets, paper wallets. As the crypto space evolves, unfortunately so do the thieves and hackers that can steal your coins and vanish without a trace. How to combat this? Implement good safeguarding practices: authentification processes, mindful of phishing attacks, use tools that you trust.

3. Research, research and more research

Never invest through FOMO or on an empty stomach. With the constant development of new coins, the circulating supply of coins, and shifting prices by market cap, you should conduct detailed research before investing. Bitcoin and Ethereum take the cake on market share, however, the rise of alternatives or altcoins could be better suited for you.

Crypto isn’t a gambling game. The most successful play strategically and can afford what they invest.

Research links:

4. Market Analysis

As well as research into which currency to invest in, keeping up to date with market trends can hugely benefit your next investment or portfolio turn.

Successful blogs and news sites are fantastic ways to keep up to date with crypto trends and broader financial market shifts.

Medium is a great, informative, and mostly free way to find major crypto announcements and more niche coin changes.

Business Insider is constantly updating their crypto news in relation to the financial sector and broader shifts which can help you take a smarter next step.

5. Education

The most important and valuable way you can be vigilant in this wide, wild, and wavering digital world is to be properly educated. During this pandemic, the need to diversify skills, as well as portfolio, has become essential.

This isn’t just for those who are investing in cryptocurrency, it’s for those who want to upskill to stay invaluable in the job market by aligning with current AI, tech, and crypto advancements**.** With so many resources available in the crypto space, it can be hard to cut through the noise whilst also being accountable for your learning. A cohort learning program solves both of these problems, whilst also giving you a community to work with and to bring ideas to light. If you’re interested to upskill or refine your existing skills then check out 6 week Crypto Klub program and feel free to reach out with any questions.

The evolution of cryptocurrency and blockchain brings investment along with it, which will change the job market and infiltrate educational resources for the better.

Don’t be shy, it’s never too late.

TOA Klub is a virtual space to connect, grow and forge your own path. 4-6 weeks of cohort learning with expert speakers and peer-to-peer learning.