Many people have entered the crypto market and have had terrible experiences (if you ask them). If you have not had any prior financial markets trading or investment experience then you will be unable to navigate the crypto market. Because not only is the market very new compared to others, but it is the most volatile.
Before embarking on a risky journey like crypto investing, it is essential to take precautionary measures and stay prepared for turbulent or unfavorable moments in the course (because it is like diving into a pool of sharks).
Crypto Market News categorizes safety measures for crypto investing into three categories namely fundamental safety, sentimental safety, and technical safety. You will learn what to do
Fundamental Safety:
This category of safety focuses on all that has to do with the cryptocurrency’s project itself. If you want to stay safe when investing in this crypto space you have to consider all the details about the cryptocurrency you wish to pursue as an investment.
Examples of fundamental safety include finding out the cryptocurrency’s use case, researching the team behind the crypto project, and most importantly the coin’s tokenomics design.
A cryptocurrency’s use case is usually clearly stated in its whitepaper and a technological explanation is given of how the project aims to achieve its goal. One fundamental safety measure you can take before investing in cryptocurrencies would be to analyze the project’s whitepaper thoroughly.
Considering that not everyone understands a technical document, most times there are simple explanatory videos that the project provides for its audience. You can look through that and analyze for yourself whether the project will be sustainable.
Another fundamental safety step to take is to analyze the cryptocurrency’s token economics. This essentially had to do with the demand and supply of a project’s native currency. A good tokenomics should be sustainable and designed in a way that tackles excess supply, inflation, and devaluation.
This also involves paying attention to economic and financial news that may affect price volatility.
Sentimental Safety:
This has to do with everything that people have to say about a particular cryptocurrency. Sentimental safety involves an evaluation of attitudes and emotions of a community regarding a cryptocurrency. It plays a large role in determining the price action of the crypto market too.
For example, sometime In 2021, Elon Musk tweeted about how he was leaving the Bitcoin community because mining consumes large amounts of energy which is not good for society. Due to this tweet, the entire crypto market experienced a shock, some people panicked and sold off their bitcoin holdings. This was an ugly time for the crypto market last year.
To take sentiment safety, you need to stay up to date with the crypto community on social channels and also keep up with what the big actors are saying concerning other projects. Crypto Market news reports every latest event that takes place in the space for investors just so you can stay informed.
How other people in the crypto community react to certain news about a cryptocurrency determines largely how the price changes. Keeping yourself in the loop of these sentiments will help you know when to make moves that will protect you from price volatility and loss.
Technical Safety:
Lastly, to invest safely in cryptocurrencies, you would need to carefully choose a platform or exchange that is best for your needs and take advantage of the technical trading tools that are provided on the platform.
Trading tools are an investor’s best friend. It is one of the best ways to protect your money in an investment and manage risks. Most times there are a lot of events that you will not see coming but with trading tools like stop-loss, take-profit, and major technical analysis tools you’re able to protect your crypto investments.
This is why it is essential to pick a very suitable and user-friendly crypto exchange so you can easily manage your crypto portfolios.
Conclusion
Out of all these safety categories, there is none greater than the other. All measures must be taken seriously because they go hand in hand. There is no one way to invest in crypto safely because the market is never just got you and neither is it against you.
