Do I need to check crypto prices every day?

The importance of understanding where your investments are going in the crypto space.

The cliche “Not everyone is a trader” has a lot of implications for anyone who wants to invest in the crypto market. 

With the popularity of the crypto market gained from its 2017 boom, it has never lost the dexterity it carries.

This is a result of the continuous evolution associated with the developers of the various projects that are transforming the way the world is functioning at the moment. 

The birth and hype of the cryptoverse

It is noticeable that most exchanges were born during that period and, as such, a new breed of jobs became available for people who are tech-savvy and willing to transform their lives and income.

However, there are other sets of people who jumped on the bandwagon of the hype associated with the new crypto economy without carrying out their own due diligence. 

There were also people who purportedly lost large amounts of money due to their naivety of the market, as they saw it as a new cash cow to be milked. 

All of these culminated in the birthing of the cryptoverse or crypto ecosystem as the case may be known. 

It is also noteworthy that the FUD (fear, uncertainty, and doubt) created by several governments all over the world about how insecure and worthless the cryptocurrencies are and would be for people in the future did bring its own share of the hype. 

As citizens, we are often naturally wired to be inquisitive, especially when warnings and announcements are coming from the mouths of their government.  

Consequently, as a result of the collapse of the fiat economy, which is gradually proving to be inevitable, many have started seeking alternative means as a lifeline for their funds and investment in digital currencies and blockchain technology projects.

Types of crypto investors

There are various ways to channel or invest your funds in the crypto market

However, everyone is free to do as he or she pleases with their money. But if you feel like investing in the crypto space, you can become either of the following:

  1. Short-term Investor: This includes but is not limited to day traders who tend to analyze the markets in order to make some profits from their trades on a daily basis. These kinds of traders are focused on small time frames around 15 mins to 4 hours and they could also be referred to as scalp traders.
  1. Mid-term traders: These kinds of traders are focused on a different time frame than the short-term traders. They are usually focused on trades that span from 4 hours to 3 days and they can be referred to as swing traders.
  1. Long-term traders: These traders are basically focused on the long-term of any business opportunity.  They are keen to know the prospects of the business over a long period of time and as such, they focus their attention on the future of the project rather than the present status the project. Such kinds of traders or investors are focused on time frames from 6 months and above to see the returns of their investment. 

In all the above scenarios of the various kinds of traders, it can be deduced that the type of investors would ultimately determine the performance of their crypto investments and also the tendency to be inquisitive about how the markets are behaving.

Know your type of investment 

It is well known that markets have cycles, which tend to affect human emotions in general.

Most day traders would have the urge to sell when they have observed some level of downwardness in the market trends, thereby losing the funds to the patient traders who are eventually in for the long run. 

So the possibility of losing a higher percentage of their funds as a result of their impatience during trading would always keep them at the edge of their digital devices like mobile phones, tablets, and even laptops to always see where the market is moving towards.

However, a long-term trader, knowing fully well that he has projected the market upon analysis to review over a period of time of about 6 months would only look forward to the performance of their positions after a period of time. 

They have taken the time to understand the whitepaper of the project, the quality of the members of the development team, and all the sentiments attached to the project to keep them in a stable position for future potential gains.

And that’s why experts often recommend knowing yourself and the type of investment you wish to make. Day traders dedicate their lives and their time to keeping up with the markets whilst long-term investors have more time to analyze, monitor, and manage their funds. 

In conclusion, evaluate your position as a trader, do your proper due diligence on any project you intend to invest in, and preferably look forward to the potential gains from your preferred projects in the long run.

It is a Klever thing to do

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Disclaimer: This article is for informational purposes only. The information does not constitute an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Klever.Finance does not provide financial, tax, legal, or accounting advice. There is no responsibility on the part of the company or the author for any loss or damage arising from or related to the use of or reliance on any content, goods or services mentioned in this article.

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