Cryptocurrency investment becomes hot topic lately because of its soaring value. In fact, Elon Musk also openly supports Bitcoin and other cryptocurrencies.

For those who don't know, cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions. Simply put, this is a digital currency that is used for virtual transactions on the internet network.

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This Is What New Crypto Investor Should Act Like

In order for you to understand how to invest in cryptocurrency, you have to read, listen, learn and absorb everything you can about cryptocurrency.

Each cryptocurrency is created for different purposes. More than a decade, when it comes to how to invest in cryptocurrency then everyone has to have a diverse financial strategy. In the end you shouldn't put all of your investment into one strategy.

“Don't put all your eggs in one basket. Diversification."

If you are a person who is just learning how to invest in cryptocurrency and risk management, you will undoubtedly underline the importance of portfolio diversification without a second thought.

This will form the basis of your every trading strategy. Meanwhile if you take a closer look at some of the most prominent investors in their portfolios, what you will find is that they are very concentrated. Great investors like Warren Buffett and George Soros have concentrated portfolios but Mr. Buffett say " diversification gives him a "low risk, and low return"

Bee hive scenario

In how to invest in cryptocurrency you also have to consider the bee hive scenario. Let's imagine a hive full of rich and sweet honey, and bees swarming around it. The more honey it has the greater the chances of a hungry bear attacking it.

Every time, the attacks were repelled. The longer this nest exists, the stronger the defenses will be. But that also means there's more change for bigger bears to learn.

The Blockchain network that underlies all cryptocurrencies is a great tecnlogy. For example, bitcoin transact tens of billions of dollars a day and it is attacked every day, but until now the Bitcoin network remains secure and has never been attacked.
This is strong evidence that cryptocurrency has the strongest and most secure network compared to all of its competitors. But the cryptocurrency market is trend dependent and is often affected by negative issues. You have to think about this.

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