Crypto Trading Tips for Millennials - Free Essay Example

Sample details Pages: 4 Words: 1145 Downloads: 4 Date added: 2019/08/16 Category Sociology Essay Level High school Tags: Millennials Essay Did you like this example? In todays legacy financial markets, opportunities for millennials to be involved are slim. The barriers to entry for younger investors in the stock market, securities, and commodities trading are many. Between high fees, large investment minimums, and relatively small potential gains, theres not much incentive for young people to get involved in the market. With cryptocurrency, however, there are many key factors which make it perfect for younger folks to jump in and start investing for the future. Lower trading costs, higher potential gains, and tech-heavy interfaces make cryptocurrency perfect for millennials. Don’t waste time! Our writers will create an original "Crypto Trading Tips for Millennials" essay for you Create order In fact, around 58% of cryptocurrency investors are between the ages of 18 and 34, and 7 out of 10 millennials say they are likely to consider non-traditional financial markets. But where to start? If youre a millennial who is considering jumping into the digital currency marketplace, weve assembled some tips to help you get started. Learn how to navigate the cryptocurrency marketplace The first thing youll need to know is how to enter the market. There are some key concepts youll want to get familiar with. First, youll need to select a cryptocurrency exchange to buy bitcoin. You may also want to consider another currency, we recommend that you buy ethereum or another well established altcoin. Within the bitcoin marketplace, you can even find other places with bitcoin on sale, such as cryptocurrency ATMs. Bitcoin was the first on the cryptocurrency market, so it is the most well established, and can be used in more places. Ethereum also has a wide range of uses, and is the underlying technology for many newer cryptocurrency offerings. Youll want to select the one that is the best gateway to a secondary investment that youre considering. Youll also need to understand the concept of a cryptocurrency wallet. These can either be online, or offline. You are able to store your investment locally without it being online and susceptible to theft. Its very important that you keep the digital key code to access your wallet very safe. Its that code which guarantees future access to your investment. Do not invest more than you are willing to lose Its a key investment tip in general, but even more critical in the volatile world of cryptocurrency do not invest more than youre willing to lose. About 40% of people 24-35 years old have at least $1000 in a savings account, and teen bitcoin millionaire Erik Finman says that millennials would be better off investing that money than letting it sit in a low yield savings account. Time is on millennial investors side, and with that means you can absorb more risk. Finmane went on to explain that a short-term outlook is a common mistake of may first-time investors. Some of the recent swings in cryptocurrency value belie the long term potential. The total cryptocurrency market capitalization stands at less than half-a-billion dollars, which is still only a small fraction compared to other more established financial markets. This means the potential for growth is still huge, especially in the long term. Research, research, and more research It is key to really understand the investments youre making. You should diligently research any currency before investing in it and pick ones that have a sound plan, a useful product, and show meaningful progress on developing their concept. Many players in the cryptocurrency industry are looking to just ride the wave to short term gain, and dont really have much to offer from a solution standpoint. Its easy to get caught up in the hype around a new company, but make sure you know that its a sound business idea thats backed up by talented and dedicated staff. The more time and energy you spend researching your investment, the less time youll need to spend managing or trading it, especially on a long-term investment strategy. Use your native knowledge about apps and interfaces to really analyze who has a winning product, and place your trust in that company. Keep tabs on your investment Even though youre shooting for a longer term strategy, you will want to stay up to date on whats happening with your investment. Dont get caught up in checking the day to day value of the investment, instead read ever press release, news article, and new product update from the company youre invested in. Follow all their social media and make sure you are on their mailing list. You want to make sure the company is meeting its goals as far as product development, and staying on plan for fulfilling the promise of their given solution. By keeping tabs on the company, youll be engaged with your investment at a higher level than just tracking the value, and youll be able to predict rises and falls based on that knowledge. You can also be active by signing up when the company rolls out a beta trial for an application or solution, or by participating in surveys or focus groups. Youre invested in the companys success, so you should be as involved as possible. Diversify your portfolio Now that youre involved and active, and have a long term investment, youll be following the market and be more responsive to trends. Its a good time to consider diversifying your investment and considering some short term strategies as well. You dont want to start out this way, but after you get a better understanding of the market, youre better positioned to make this transition. There are two key ways you can diversify your portfolio, by asset class or length of investment. You can either invest in established coins (like Bitcoin, Ethereum, or Ripple,) Tokenized assets (such as blockchain based real-estate investments,) or ICOs (Initial Coin Offerings.) Each one offers a different risk/reward ratio, and requires the same level of diligent research. By diversifying the length of investment, you can also increase your wealth at a higher rate. This will take more work, as short term trading requires more of your attention. Youll want to leave a large long term investment for security, and then take a smaller amount to start dabbling in shorter term plays. Just get started! Sometimes the biggest barrier to entry is a fear of the unknown. Take a small amount, and just jump in. Make sure you begin with a well established crypto asset, but by getting involved youll begin to really learn about the market and investing. With most crypto assets on the tail end of a long slide in value, many consider this a great time to get involved. The old adage buy low, sell high, means that dips in the market are good opportunities to join in. There arent many facets of life where millennials feel like they have a ton of control over their future, but starting a cryptocurrency investment portfolio is one way you can actively own a piece of your financial future. What are you waiting for?