What Should you know when investing in Crypto
The first you should do when you want to get into cryptocurrency is to find the token that you are most interested in example BTC, ETH, XRP, or even LINK. The next step in to do as much research as possible, find what they are about and their objectives and what is the project about. Go on their website, learn what they are working on, the people that are part of the project and see if they are credible by viewing their LinkedIn or search them on Google. You can also compare the tokens from transaction volume, market cap, and token in circulation This will allow you to understand what you are investing in and prevent from pouring money into a shitcoin or a scam.
You should only invest money that you are willing to loss and do not invest your entire life saving. The price of cryptocurrency is strongly correlated to Bitcoin and the price can be extreme volatile, so it is important that you understand it can be risky and some crypto coins might go to zero and might never recover.
Always invest in a crypto wallet. This allows you full control of your asset and you’re not at the mercy of the exchange, hackers, or government. Make sure you keep your Recovery Phrase somewhere safe encase you lose your password or your device. This will allow you to recover your crypto asset or NFTs. Without it they might be lost forever.
There are a few ways for you to make money$$$ with your cryptos or participating in different projects. Obviously, this demands skills, patient, a will to learn, and a solid stomach. So, here are a few of them below.
1. Long-Term Investing: This is probably the best way to make great gain on your crypto. When buying or invest in a crypto asset that as great value, growth potential, and sustainability. So, overtime by hold this asset for a certain among of years the value would have grown to 2, 3, 5, or even 10 time it’s original value.
2. Day Trading: When you are buying and selling the crypto asset through the exchange due to the price movement and you are profiting from the change in price. The trading normally happens hourly, daily, or even weekly. There are numerous trading strategies that can be used to trade crypto. You can learn Technical Analysis as a tool to help you with you with your trading or find indicators price movement.
3. Staking or Lending Your Crypto: This is when you lock your crypto assets for a set period to help support a blockchain project. In return you earn interest on your investment for supporting the blockchain project. This can potentially lead to earning 10%, 15%, and up 20% on your crypto assets.
4. Receiving Airdrop or Folks a Blockchain: You can receive free cryptocurrency from the Airdrop Project to your wallet for holding a certain amount of crypto for a certain amount of time or participating in a project. for example, exploring and using a web3 app or holding an NFT for a period. For example, if you are holding 10 SOL for 16 month you could be eligible to receive the Airdrop to your wallet. For Folk it’s basically splitting the blockchain in two by copying and pasting from the original Blockchain code and modifying it which result in the creating of a new coin. This is not recommended if you are a beginner and have not gain in-depth technical computer skills.
5. Mining (PoW): You can make money through mining crypto, especially Bitcoin by investing in a mining computer, but the sector is very competitive and requires investing lots for money before seeing a return on your investment. Mining or Proof-of-Work is when you are reporting a transaction on the bitcoin network after solving a complex computational mathematical problem, which will need to be reported to the validators and process to receive the newly minted Bitcoin. The price bitcoin mining computer can range from anywhere from $2000 to $9000 and some time they can go for even more.
This are a few ways that you can find a great cryptocurrency, make money, and protect yourself. You always keep trying to learn, research for new projects, find a new great crypto, get involve in different crypto or communities. This will keep you updated of what is going on in the field and save.