A little more than ten years have passed since a select group of cryptographers received letters from an unknown Satoshi Nakamoto to their e-mail addresses, announcing the launch of the innovative Bitcoin monetary system. Since then, the developers of cryptographic algorithms have offered many digital alternatives to existing payment systems. Yet debates over the inherent nature of cryptocurrencies continue, and many wonder how investors can mitigate existing risks.

Even though the cryptocurrencies are quickly becoming the new gold standard, experts and novices alike fall short of devising the best investment tactics. To understand the most lucrative crypto investment strategies that can help bypass risks spurred by the  ever-present market volatility, we spoke with a multi-talented entrepreneur and cryptocurrency expert Sean Shepherd.

Sean Shepherd’s 4 Tips for Smart Cryptocurrency Investing in 2021

Cryptocurrency: What It Is

Technological advancements have altered the way people work, communicate, and pay for goods and services. Cryptocurrency is a digital currency with no physical representation; the unit is referred to as a "coin." To verify transactions, there is no internal or external administrator in the form of a bank. The system operates automatically and enables people to send and receive payments from anywhere.

Diversification of Digital Assets

Never rely on a single plan for your success: this is the primary thesis upon which the concept of diversification rests. Investing in a variety of assets always yields higher returns as investors face fewer risks. Because we can never predict how the market will behave at any given point in time, a well-diversified portfolio is fundamental.

"Diversify with asset classes (like digital assets) as well as strategies like active trading", Sean tells us.

The Art of Trading

Purchasing digital currencies without first assessing the risks is akin to gambling. What distinguishes an expert trader from a gambler is the mastery of risk management strategies.

Investing in a diverse class of digital assets shall help you navigate through any market condition and protect you from short-term market declines. Assets that increase in value can compensate for those that are stagnant, therefore reducing risks.

Problem-Focused Coping

Because the cryptocurrency market is so volatile, one must always be prepared for ups and downs. You will frequently have to deal with large price fluctuations. If acquiring due psychological resilience is too much of a hassle for you, it is best to avoid the cryptocurrency market entirely.

"The moment you say, no, that is not right, you won't learn or take in any new knowledge. Make no mistake - we will not recognize this world in the next decade or two. Hop on, learn, grow and enjoy the ride!", says Sean.

Importance of Expert Help

Competent firms like SimpVest invite everyone to take part in educational masterclasses specially designed to teach the fundamentals of crypto trading as well as more complex, results-oriented investment strategies.

If you're a cryptocurrency enthusiast who wants to know all about today's cryptocurrency ecosystem and how to trade successfully, sign up for SimpVest's free workshop to see how it can be of value to your quest.