All you need to know about Crypto Assets investment & Diversification

Hello friends,
Today I have come to address you all, especially the newbies in this platform and even those who have been in the crypto space for quite a long time now. I want to talk on a very serious and important topic which I titled All you need to know about Crypto Assets investment & Diversification.

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Introduction

As a Nigerian, recently the country has become very tough for crypto traders especially Steemians who are new to the crypto space because of the rules of the federal government which has to do with arresting the closing accounts of those who are found doing anything related to crypto transactions.

So Steemians are scared already and a lot of them came to me to sell their assets because they thought crypto was coming to an end here in Nigeria. In most cases, I advise them on how they can properly invest in crypto and also diversify their assets so that fear won't come near them again.

Cryptocurrency didn't start in Nigeria hence Nigeria can never eliminate it no matter how the government tries. We are already in the era of blockchain so no matter how primitive the Nigerian government remains, a day will come when they will embrace reality and I hope it won't be late by then.

Without further ado, let's go into details on the topic of the day which is all you need to know about Crypto Assets investment & Diversification.

Crypto Assets investment

To invest in cryptocurrency as a newbie or even as an old Steemian, I advise you to always look for a financial adviser to guide you properly before making any investment in the crypto space.

Crypto is indeed the future but you also need to invest wisely so that you don't lose all you have worked for your entire life. So investing in crypto means you have a basic knowledge of how it works and you are ready to put your money there.

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There are two ways to invest in crypto. One is as a trader and the other as a holder. You can buy an asset and hold it for some time and then sell the asset when the price is favorable enough for you and this is what most of us here as Steemians do always.

This is not bad at all because it's almost risk-free. We earn Steem here and we wait until the price of Steem appreciates, we rush to sell it and then use the money for another purpose, or better still we keep the money and buy more Steem when the price drops.

Another means of crypto investment is trading the crypto asset. Now this is the most profitable and most risky part of crypto investment. I will explain better in the paragraph below.

When we say it is the most profitable investment, what we mean is that you can make a lot of profit from this type of investment even though it requires much work and knowledge such as technical analysis knowledge and fundamental analysis knowledge.

Here, traders make money in both ways if the market is rising or falling they still make a profit. If you analyze the crypto market and predict that the price will rise it will make a profit. In the same way, you analyze and predict that the price will drop and if it drops you will still make a profit.

It is also risky because if any of your predictions don't go in the direction you have predicted then you will lose some money or all your money if you didn't put a stop loss on your trade. This is why I said this method is the most profitable yet the most risky type of crypto investment.

Crypto Assets Diversification

Diversify your Assets means spreading your assets in different places. We have more than a thousand crypto assets out there and most of us don't even know that they exist because we are focused on only the Steem token.

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Just like we have the Steem token, there is no other cryptocurrency out there and it will be good for us to look for one that will do well with time and hold it so that when the price finally appreciates we can smile.

Diversification means to share your finances on different assets and then you wait until the prices do well. This is important for everyone and that is why we have a cryptocurrency portfolio. Here you will look at the project and anyone with a better future gets more investment but never invest in only that one no matter what.

There are many things to consider when diversifying your assets among which include the use case of the token, the team behind the project, the total supply of the token, the market cap of the token, and the tokens ATH and ATL among other things.

So we must do our research before going into investing in any crypto asset. I want to believe that this little piece will help someone out there when it comes to investment and diversification ot their crypto asset. See you all next time as we continue to blog.

member also that trading is like meditation, patience is the key. Always wait for the market to come to you and not for you to go to the market. Learn to identify your key support and resistance level and also trade with the trend and in that way, you will be a successful trader.

Finally, I want to thank you all for reading through my post today. If you have any questions or contributions, please do well to use the comment section of this post. See you all in my next publication.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}