In this article you will learn:
- Why investors should avoid leveraged trading
- Which 3 to 5 top cryptocurrencies you should invest in according to Raoul Pal
- Why self-management and wallet management are important
- What advantages a long-term Hodl strategy has
- Why investors should be prepared for price drops
Anyone who invests in crypto projects must be careful: hackers set traps, the market implodes or exchanges embezzle customer funds. For beginners, the crypto market can quickly become a horror experience. Financial advisor Raoul Pal has revealed how this can be avoided and how investors can be successful in the crypto market. BTC-ECHO took a closer look at the tips and tricks of the former manager at Goldman Sachs.
Tip 1: Avoid leverage trading
With leverage trading, investors artificially increase their purchasing power by deploying more capital than they actually own. This increases the potential return many times over. However, if the market suddenly moves in the other direction – not uncommon with notoriously volatile cryptocurrencies – investors are liquidated much more quickly.
To make money quickly, leverage trading is certainly a promising method. But this requires expertise and risk management. However, in order to invest successfully in the crypto market in the long term, Pal advises against this method.
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