Investment plan

India Crypto Investment Plan Tips Tricks Guide Things to Do Keep in Mind Bitcoin Bear Market Mudrex Edul Patel

A financial investment plan is crucial for any asset to hit milestones from time to time. As most of you know, cryptocurrency is a volatile market. It becomes even more vital for investors to plan their investment strategy to mitigate losses and achieve better risk-adjusted returns. It can also help you navigate bear markets easily if you are new to crypto and want to get started. Here are some tips to help you create a personal crypto investment plan.

Understand, research and evaluate

The first step to creating a personal crypto investment plan is to assess your current financial situation and determine how much you can invest in the crypto market. Once you are clear on this, you can start researching which cryptocurrency to invest in – understanding supply and demand, utility, blockchain, accessibility, communities and tokenomics before making a step forward. Later, based on this, you can choose a crypto exchange.

To note: Don’t invest what you can’t afford to lose. It is prudent to start small, gain experience and scale up gradually.

READ ALSO: Cryptocurrency: what is it? How it works?

Decide on goals

After evaluation and research, you can set long-term or short-term goals depending on your goals. For example, if you just want to try your hand at crypto, you can set a less risky and short-term goal, while if you want to earn passive income because you want to retire early, you can choose a goal to high risk. investment to align with a long-term goal.

Simply defining where you want to go can help you get things done better. It also helps to understand how much risk you can take in the crypto market.

Diversification

Next comes diversifying your portfolio. In the cryptoverse, you can diversify across various products, coins, tokens, and use cases depending on your goals.

For example, you can allocate your crypto wallet with 40% bitcoins, 30% altcoins, 15% stablecoins, and 15% NFT to avoid risk rather than putting all your eggs in one basket.

A diversified portfolio is able to reduce overall risk and volatility. In order to achieve more risk-adjusted returns, it is essential to build a well-diversified portfolio, with little time spent on research.

Bonus tip: Keeping up with news and happenings around the crypto space can help you better decide how to diversify your portfolio and what and when to invest, based on sector opportunities.

Timing the market

Cryptocurrency prices can drop or rise in seconds on nothing more than an unsubstantiated rumor. So, as a novice investor, the first thing to do in such times is not to panic.

Keep your cool and do some research, then decide if you want to book profit on time or sell. But a smart way might be to just stick to your plan and invest to take advantage of the Rs cost averaging and experience the power of compounding.

In addition, you should know that the market is in its infancy. Thus, there are more chances for new tokens and projects to enter the market and create buzz. But, it is essential to stay aware of these scammers’ schemes to stay safe.

Bonus Tip: Investors should consider setting stop-loss orders. These are orders to sell an asset when it drops to a certain price level. It can help protect investors in times of crisis.

There are thousands of cryptocurrencies in the current market. You can define a personal crypto investment plan by choosing the best in the market, which is only possible through thorough research. To start, start small and only invest in the money you can afford to lose, and gradually you can increase your limits.

(The author is the CEO and co-founder of Mudrex, a global crypto investment firm)

Disclaimer: The opinions, beliefs and views expressed by the various authors and forum participants on this website are personal. Crypto products and NFTs are unregulated and can be very risky. There may be no regulatory recourse for any loss arising from such transactions. Cryptocurrency is not legal tender and is subject to market risk. Readers are advised to seek expert advice and carefully read the offering document(s) and related material material on the subject matter before making any type of investment. Cryptocurrency market forecasts are speculative and any investment made will be at the sole cost and risk of the readers.