Cryptocurrency has implemented its wondrous properties into the world of exchanges and transactions.
Although still a rather recent global phenomenon, with the first bitcoin created in 2009 by Satoshi Nakamoto, cryptocurrency has the potential to completely replace credit card and banking businesses as a more effective instrument for business transactions. With all of the possibilities and potential it brings, many individuals are investing in the crypto market.
One young investor in particular is Anish Pradhan, a 19-year-old entrepreneur whose interest in the subject propelled him forward as a successful crypto investor. At the tender age of 13, Pradhan began investing in stocks with the help of his father, whom he considers a mentor, doubling and tripling his investments through many years of successes and failures. In the summer of 2017, after developing a curiosity in digital currency, he took a risk to successfully invest in cryptocurrency with the money he had previously garnered.
Now a successful crypto investor, Pradhan hopes to use his money towards building his own crypto investing firm, in hopes of aiding his clients in building and promoting wealth as well as inspiring others to understand and invest in the cryptocurrency market. Here are some of his cryptocurrency investment tips for beginners.
1. Take risks.
Business itself means managing risks to make profits and avoiding business losses. The risks that come with financial investments in particular are unavoidable, especially those of the unregulated and highly-volatile crypto market. Investing in such a market requires the investor to perform many technical, market, and risk analyses before making a final decision.
In order to successfully invest, one must take a risk and hold on to investments. Markets will always fluctuate; even if it is fluctuating severely, the best option is to keep hold of your investments and not pull out too early.
“When something is important enough, you do it even if the odds are not in your favor." - Elon Musk
While taking risks, it is crucial to understand that both successes and failures are essential to investment activities, which leads into the second piece of advice.
2. Accept failure
Underneath success lies countless failures. What sets successful investors apart from the amateurs is their ability to understand and grow from failing. Over time, as failures accumulate, one may find themselves becoming a more passive risk taker, especially in the financial industry.
With each failure comes the opportunity to enhance analysis skills, allowing the investor to improve technical, market, and risk analyses. These skill sets are crucial for deciding to invest in anything, enabling advanced graph analysis and predictions of underlying assets while considering the associated business risk factors
“it’s fine to celebrate success but it is more important to heed the lessons of failure." - Bill Gates
Always diversify portfolios in order to have multiple sources of income; this is essential to balancing out the risks involved. For example, while investing in cryptocurrency, one may decide to invest in altcoins. Altcoins are any other digital currency aside from Bitcoin, with their difference residing in their consensus rules.
4. Pay attention
A successful investor is always invested in the news. In particular, the cryptocurrency market is heavily impacted by news, fluctuating with respect to the opinions expressed by media outlets.
The bottom line of any investment strategy is making money. In order to do so, one must take risks, but always keep in mind that that does not mean it is acceptable to invest significantly more than one can afford. Regardless, investing in cryptocurrency is an exciting thrill that brings both tangible and intangible benefits.