Bitcoin price increased 37.06% in March, beating 97.6% of the S&P 500
- Bitcoin outperforms 97.6% of the 500 leading publicly traded companies in the U.S.
- Since March 10th, the price of bitcoin has risen by 37.06%.
- Bitcoin outperforms the YTD returns of 488 S&P companies, including FedEx, Apple, and Amazon.
With the recent crash of Silicon Valley Bank, people are becoming increasingly worried about keeping their money in the banking system. Many of these people will be looking for alternate ways to take control of their money and ensure that they regain their feeling of power and keep their money safe.
For many, this means entering the Cryptocurrency market.
The Cryptomarket is heating up, and with Bitcoin recently surpassing $27,000 (ÂŁ22,000), itâs only a matter of time before Crypto is once again the word on everyone’s lips. Cryptomaniaks.com, a leading Crypto education platform, discovered that since March 10th, the price of bitcoin has risen by 37.06% from $20,376.32 to $27,929.17.
To put this into perspective, only 12 companies in the S&P 500 have achieved higher than 35% returns this year to date.
This means that not only is Bitcoin outperforming the 27.20% YTD returns of FedEx (NYSE: FDX), the 19.30% YTD returns of Apple (NASDAQ: AAPL) and the 17.80% YTD returns of Amazon (NASDAQ: AMZN); but Bitcoin is outperforming 97.6% of the 500 leading publicly traded companies in the U.S.
Before diving in or back into Cryptocurrency, new and old investors need to ensure they’re making smart investments that will increase their odds of long-term success and the safety of their finances.
Cryptomaniaks.com has identified six of the most common questions every investor must answer before investing in Bitcoin or any other Cryptocurrency for maximum safety.
âI understand the stock market; How much do I have to learn before I can start trading Crypto?â
At the very least, people must learn the basics and understand the technology they are trading.
Would Apple be one of the biggest traded stocks if people didn’t understand what it did? Investors learn who controls the company, what they are spending their profits on, and their plans. Crypto should be no different.
With a solid grasp of each Cryptocurrency’s underlying technology and fundamental value, investors can avoid making impulsive decisions based on hype rather than a well-thought-out investment strategy.
So, before investing in any Crypto asset, it’s essential to become familiar with the basics of crypto trading and the market. Â
This includes understanding the basics of trading blockchain technology, how Cryptocurrencies like Bitcoin work, the concept of circulating vs. total supply, and the impact of inflation on the market.
Additionally, by understanding the basics, investors can also understand how to use different trading platforms, exchanges, and wallets, which will be necessary to buy and sell their assets.
Cryptomaniaks has created a free mini-course on how to get started investing in bitcoin. Itâs the perfect crash course into the world of Crypto and bitcoin.
Similar to understanding the basics of trading, knowing what youâre trading is essential.
The technology behind different Cryptocurrencies is what makes them unique and valuable. Therefore, it’s crucial to have a solid understanding of the technology before investing in a coin.
This includes understanding the underlying blockchain, consensus algorithms, and other project technical details.
When researching and evaluating potential investments, it’s paramount to consider factors such as:
-The coin’s fundamentals
-The team behind the project
-The coin’s overall potential for growth.
Looking for coins with a clear use case and a strong community behind them is a great place to start.
Additionally, staying informed about the latest developments in the Cryptomarket is critical by following industry news and events and participating in online communities and forums.
âHow many Cryptocurrency trades do I need to make before I see a profit?â
This is a question that can only be answered by doing homework. The data will dictate when you should trade and help avoid overtrading and acting on impulsive decisions.
Nobody should trade more than they can afford to lose. Far too many people suffer from this common pitfall in the high-risk Cryptomarket.
It’s easy to get caught up in the market’s hype and make impulsive buying or selling decisions and overtrade.
Overtrading refers to buying and selling assets too frequently, often based on short-term market fluctuations or hype rather than a well-thought-out investment strategy.Â
This can lead to financial losses, as investors may make impulsive decisions to buy or sell based on emotions rather than rational analysis.
Developing and sticking to a trading strategy is vital, even during market fluctuations.
To achieve this, investors should take a step back, evaluate their positions and assess if they align with their long-term strategy.
âShould I move all my funds to Crypto At once?â
Ultimately, people should only invest money that they can afford to lose. Itâs important to set limits and not get too excited.
Crypto trading is inherently risky, and the market can be volatile.Â
This can be particularly dangerous in the Cryptomarket, known for its extra high volatility and risk.
Prices of different Crypto assets can fluctuate rapidly, and there is always a risk that the value of an investment may decrease or become worthless.
Therefore, investing only what you can afford to lose is essential. Never invest your life savings or take on excessive debt to trade in the Cryptomarket.
âHow do I get rich buying coins like Dogecoin or Shiba Inu?â
It’s important to avoid chasing cheap coins and focusing on short-term gains. Instead, investors should focus on researching the project’s technology, team, and potential for growth to make informed decisions about long-term investments.
It can be tempting to chase cheap coins to make a quick profit, such as Dogecoin or Shuiba, but the odds of getting lucky are far too small.
Many investors, especially new ones, may be attracted to the idea of buying a large amount of a cheap coin with the hope that its value will increase in the short term.Â
However, these coins may not have a solid fundamental value or long-term potential and may not be worth the investment.
Furthermore, focusing on short-term gains can lead to impulsive buying and selling decisions, resulting in overtrading and financial losses.
Instead, focus on researching the project’s technology, team, and potential for growth and understanding the research.
âHow much Cryptocurrency exposure should I have?â
Diversifying your portfolio is vital in any type of investment, including Cryptocurrency, because it helps to spread risk and minimize potential losses.Â
When you diversify your portfolio, you’re spreading your investments across different assets, sectors, and industries. This way, if one investment performs poorly, the others can offset the losses and minimize the impact on your overall portfolio.
For example, an investor has a portfolio heavily invested in technology companies.
If there is a recession in the technology industry, the investor’s portfolio will be heavily impacted.
However, suppose the investor diversifies their portfolio by including investments in other sectors such as healthcare, real estate, and energy. In that case, the impact of the recession in the technology industry will be less severe on the overall portfolio.
âShould I hedge my Cryptocurrency investment with lots of coins?â
While diversifying your portfolio is crucial in any investment, over-diversifying can lead to weaker returns.
You can have too much of a good thing. While diversification is important, keeping your investments manageable is essential because tracking hundreds of coins will only cause stress and more possibilities of failure.
Over-diversifying can lead to a lack of focus and ultimately result in weaker returns.
When over-diversifying, investors may end up investing in assets that they need help understanding or spreading their investments across assets that are not related to each other, which may lead to a lack of a coherent investment strategy.
This can make monitoring and managing the portfolio challenging and lead to lower returns on investment.
A spokesperson for Cryptomaniaks.com commented: âBy answering these common questions, investors looking to take some of their money away from the banking sector can increase their chances of success in the Cryptomarket.
However, it’s important to remember that, like stocks, Crypto trading is inherently risky, and past performance does not indicate future results.
With the lack of fundamentals like quarterly earnings, itâs more important than ever to research Cryptocurrencies and invest only what you can afford to lose.â
This research was conducted by Cryptomaniaks. The Cryptocurrency and Blockchain education platform provides expert recommendations to help you explore the Crypto space confidently.
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