Crypto Frontline

Adapting to the Shifting Cryptocurrency World

Adapting to the Shifting Cryptocurrency World

Adapting to the Shifting Cryptocurrency World
May 30
08:13 2018

Nothing lasts forever and that is true for cryptocurrencies as well. However, if we talk about digital assets, big changes happen more often and big turns sometimes seem hard to anticipate. The question that arises from here is how a regular person can get involved in the cryptocurrency world and also not be harmed by sudden big changes but be able to profit from them.

Focusing on details and making split decisions

One thing that is crucial to understand is the great influence emotional trading has on cryptocurrencies. We’ve talked in our last article about the price of cryptocurrencies and emotions, so this is an important factor we should take into account. Also, being a reactive person is not too efficient. One must learn to be proactive and anticipate events, facts, and possible future scenario. By doing so, it is possible to anticipate how the cryptocurrency as a whole might change.

Being yourself able to regulate your emotional reactions is crucial as well. That will enable you to “think outside of the box” and make rational decisions.

Diversification

In a rapid-changing world, you are not dealing with facts, but with probabilities. Because of that, in any decision you make, there will always be a chance of failure. Since you know for sure you don’t have 100% winning chances, diversification is the tool you could use as a precaution. Don’t just stick to one cryptocurrency, ICO, etc. but instead, find out a few that have a great potential. By doing that you are spreading the risk and even though one or two might not work out, the others could compensate.

Take regulation into account

You probably know for sure that there are scam companies in the industry and also, people that use cryptocurrencies in order to bypass the fiscal system. You must understand that those who do that are taking the easy way out and even though they might get away without any penalties at this stage, things can rapidly change in the near term. We’ve talked about the G20 countries working on a joint regulation. Also, there are several investigations going on. The US Department of Justice, the FCA, and the SEC are all working to find fraudulent activities. So, don’t do what others are doing. Pay your taxes and comply with legislation. In the long run, you will have more benefits and there is no risk the government could impose sanctions on you.