Cryptocurrency Investors: If you are also attracted towards cryptocurrencies and are thinking of investing in it, then it is very important to keep some things in mind. By keeping these 5 tips in mind, you will always remain in profit.
The craze of all cryptocurrencies including Bitcoin, Ethereum, Dogecoin is increasing in our country. The Reserve Bank of India has not yet given legal recognition to these currencies, but investor confidence and investment is increasing very fast. The biggest reason for its attraction is the bumper returns. Even though there has been a huge decline in bitcoin this time, it has given more than 400 percent returns compared to last year. According to a report, investors of their country have invested 40 billion dollars i.e. about 3 lakh crores in crypto.
If you are also fascinated by the returns on cryptocurrencies and are thinking of investing in it, then it is very important to keep a few things in mind. By keeping some important things in mind, you can always remain in profit. Investment experts still say that even though crypto is giving huge returns, retail investors should invest only as much as they can bear the loss. If an investor is ready to take more risk then he should invest slowly like SIP. The weight of crypto in the overall portfolio should not exceed 2 per cent.
If investing in cryptocurrencies, do not panic because of its volatility. If we go by the price history of cryptocurrencies, then it is normal to have 60-70 percent correction in the price. In such a situation, if the value of your investment decreases, then there is no need to panic. It also improves with time. The cryptocurrency bluechip bitcoin also sees huge fluctuations.
There is no regulator regarding cryptocurrencies, due to which retail investors suffer. Last year, the Supreme Court, while giving relief, overturned the decision of the Reserve Bank in which its trading was banned, although there is no regulator due to lack of legal recognition from RBI. There are hundreds of platforms in the market with the help of which trading in crypto can be done. However, it is very important to choose the right platform or brokerage for you.
Another advice from investment gurus is to always invest in bluechips in cryptocurrencies. At present, thousands of cryptocurrencies have entered the market. New currencies are like penny stocks which easily give thousands of percent returns overnight, but there is every chance of your investment sinking here. In such a situation, investors should focus on bluechips like bitcoin, ethereum, dogecoin. Their price is very high but fraction parts can also be bought.
The most important tip is that if you have invested in any crypto, then always be updated about global developments. Positive and negative news about cryptocurrency in any part of the world has a direct effect on its price. It is a de-centralized currency whose value remains the same all over the world. Its trading is 24×7. In such a situation, the effect of every news is seen immediately. Along with this, be aware of tax related rules as well. Currently, cryptocurrency is not registered in the Income Tax Act, but gradually it is being recognized as a capital asset. In such a situation, if you are a big investor, then the tax department officer can have an eye on you.