Financial freedom is a critical, if not the most important, aspect of individual security. While the concept of money has been with mankind for a while, it somehow remains a daunting concept and a scary idea for many. However, new ways of thinking, along with relevant technology, a.k.a., cryptocurrency, is helping people take charge of their finances and become less dependent on external entities such as banks. The transition will be slow, but more importantly, it’s already on its way. There is a rise in the number of young crypto traders, and individuals like Besart Hoxha, hope to share their joy of achieving financial freedom via cryptocurrency with them. Here are Hoxha’s five tips to help budding crypto traders build a strong portfolio.
When people are trying out new things, they tend to swing in two different directions—too cautious or too careless. Hoxha encourages young traders to curb their stress or enthusiasm and focus instead on “the right amount of money that you can invest in.”If you invest little, then you stand to lose out on paying fees to convert your money into cryptocurrency. He also advises small investors to “refrain from diversifying and choose a platform that charges a low fee.” For traders how can up their investment amount, he advises that “before you invest, look around, consider your options—fee extraction, platforms and services, and returns—and diversify.
Understand Market Cap
“Diversification is the name of the game when it comes to crypto trading,” says Hoxha. To diversity one’s portfolio coins, the trader must first “measure the relative size of their cryptocurrency. In industry terms, this is called the market cap. As a rule of thumb, he continues, “the higher the market cap of a coin the lower its volatility and vice-versa. To make a strong portfolio, you must have a balanced mix of the two.” This mix, he adds, “will create a healthy coin diversity.”
Develop a Strong Research Strategy
Hoxha has learned with experience that “If you research hard and look for a lucrative opportunity that may be hidden to less investigative minds, you stand to find something exceptional.” He cites “research as the key factor in finding these low-lying but high-yielding hidden gems, for example, where an early investment churned out a profit of 4300 percent. So, take your time and learn to research.”
Keep an Open Mind
All successful traders of today were amateurs once. They succeeded because “they didn’t rely on their ignorance or another’s amateur’s knowledge. Instead, they honed their research skills, stayed within earshot of veteran traders at gatherings, and this way kept themselves abreast of new technologies, new insights, and simply better ways to do business.”
Develop Your Intuition
Hoxha believes in developing an intuitive ability when choosing the investment platform, market cap, and more. He says, “it’s a relatively new field where new potentialities are being constantly discovered. And, it’s the risk-takers who are the fastest to learn. So, take risks, listen to others but follow your heart. This attitude will help your portfolio show your versatility as a trader.”
Hoxha’s practical insights have enabled the 27-year-old to make a name for himself in the market and perhaps hold the potential to offer direction to younger traders.