In principle, investing in cryptocurrencies is similar to other investments. You enter the investment opportunity at a certain price and expect the value of your investment to appreciate after a certain time horizon. This means applying the same principles as you would in any other volatile investment. The only major difference is that digital currencies are more volatile than most investment opportunities.
Some points to consider prior to investing:
- Plan ahead. High price volatility is normal, meaning prices can go up and down quickly, and sometimes irrationally. You should have a plan of action for all scenarios.
- Understand limitations. Cryptocurrencies are in their early stages, which means that cause and effect of news and other events might not have a straightforward relationship to cryptocurrency prices. You should temper assumptions, and factor in the effect limited information will have on formulating your investment strategy.
- Be prepared. Unlike traditional stock markets, there are no trading hours for cryptocurrencies. Cryptocurrency price fluctuations happen year-round at any time of day. Make sure to keep this in mind when planning to manage your investment.
- Never invest an amount above your risk threshold.
NOTE: buying, selling, or holding cryptocurrency carries a substantial risk of loss. Accordingly, you should carefully evaluate whether buying, selling, or holding cryptocurrency is appropriate for your financial situation.
About Rain Turkey
The corporate headquarters of Rain Turkey, a crypto money platform operating in Turkey, is in Istanbul. Through Rain Turkey, you can buy, sell and store Bitcoin and other cryptocurrencies securely and in accordance with the rules.