hey, and welcome to the world of crypto.
If you want to start investing in crypto there are a few rules you should know:
- never invest more than you can afford to lose
- never use margin of leverage if you are a noobie (crypto is very volatile your margin positions can be liquidated quickly)
- if you hold crypto on exchanges you don’t actually own them (you can make a private wallet and store crypto their) ‘‘not your keys, not your crypto’’
- if you have an own wallet, never ever reveal your private key, or seed phrase (12 words)
- Dollar cost Average input into a diversified portfolio
In my opinion the crypto market is the most exciting market nowadays, there are lots of new platforms, and start-ups that actually utilize blockchain technology that may replace traditional techniques. These start-ups are very interesting to invest in, if they are capable to innovate successful they can grow into huge companies, much like investing in apple at the very start. I have bought assets very early on to see them grow into platforms with 8.34 billion$ in value locked on the platform (Pancakeswap).
these opportunities are the best thing about investing in crypto, however it can be very hard to find and analyse these platforms, because of the immensely growing market there are a lot of new start-ups that actually don’t turn out to be profitable at all or, even worse, turn out to be a complete scam. For this reason it can be wise to choose top 20 cryptocurrencies, these platforms have proven themselves over time, and can be a less risky investment. also before you invest in something always research the platform, the team and the token specifications.
the reason you shouldn’t invest in crypto is due to its instability, many claim the current cryptomarkets can suddenly drop 40% in a week, I have seen it happen in 2018, tough times, still I find consolidation in the fact that even if I bought BTC at the 2018 ‘‘bubble’’ peak at 20k$, then at this point I would have still made 32K$, pretty good return for a 3 year investment.
however there is a pitfall in this argument, if you cannot handle the pressure and fear in losing 40% of your investment, you might sell at the bottom and lose your input. therefore I advise you to focus on the long-game, just see it as an extra form of savings with different interest rates.
however if you are the type of person that checks his portfolio every 5 mins and gets scared when an assets suddenly (and without proper cause) drops 10%, then you should not invest in crypto because you will get stressed out and probably won’t make that much money.
so in conclusion, negatives: well its risky, you might lose your money, it can be stressful sometimes (I mean no-one is happy if they lose 5k in a day, but stay calm, emotions have no place in this world) and its difficult to spot the right investment.
on the positive side we have: it can be quite profitable, you have a chance to invest in new innovative markets that may change way things work nowadays, investing in crypto does not come with large transaction costs or investment costs as with stock brokers, you actually own your cryptocurrency and are able to use them to pay others, or use them in decentralized finance (like pancakeswap, you can farm with the BUX token for 340% yearly interest)
in conclusion there are several positive and negative sides to crypto, you have to asses yourself to find out if this is something for you. If you want to learn more I suggest you want videos on youtube (coinbureau is an honest reviewer)
kind regards, TPS
PS: be aware that alot of guys on social media and youtube are trying to influence you to buy a certain token (which they already own), don’t let them fool you or buy into any promises they only do it for their own profits. Always do your own research!