It is most likely that you’ve heard of Cryptocurrency or Crypto (short form), and you are curious about learning more about this mind-blowing technology and how to create some wealth with it. Digital currency is currently the main point of focus at the moment as more and more individuals are becoming millionaires through cryptocurrency investment.
Cryptocurrency is a digital asset, digital currency, or virtual currency that is used to purchase goods and services online. It is an internet-based medium of exchange which uses cryptographic functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. The biggest and most popular cryptocurrency is the Bitcoin (BTC), which is also the first cryptocurrency ever created.
Cryptocurrencies have pretty much been a subject of intense discussion over the last few years, with stories of how people became overnight millionaires through this means. Interestingly, these stories are true. Early-stage investors in Bitcoin and Ethereum made millions of dollars in pure profits. For instance, in 2013, BTC was worth about 13 USD, and in 2018 the worth of Bitcoin rose to around 20,000 USD. This implies that if you had bought 500 USD of BTC in 2013, it would have amounted to over 750,000 USD in 2018! That’s a huge return on your money that even a fixed deposit in a bank couldn’t give you in such a period of time. This demonstrates the clear advantage of investing in cryptocurrency, rather than in fiat currency.
In past years, stories of successful crypto investments inspired more and more people to join the crypto plug to get their share of that crypto cake. However, as more and more adventurers flooded the market, the inevitable happened, the market took a huge dump. Many people fell victim to the hype surrounding the cryptocurrency-bubble. There is always somebody captured by FOMO (fear of missing out), buying massively at the peak of a bubble, just in the hope to make quick money, while not understanding cryptocurrencies at all. However, these are bad reasons to invest in cryptocurrencies. It is safe to learn before you invest.
At coinnest.africa we teach investors how to make intelligent cryptocurrency investment with calculated risks. As we always tell our clients, the second most stupid thing you could do right now is to own a number of Bitcoins you cannot afford to lose; and the most stupid thing you could ever do would be to not own any.
Anyone can learn how to earn money with cryptocurrency, without any special or technical skills. The best way to Learn about Cryptocurrency Trading is to get right into it. Open a wallet or an account on an exchange platform like Blockchain, buy some coins and start trading. As far as we know, in order to make a significant profit, there are some basic things you must consider.
- First off, never day trade a crypto coin. Unless you’ve already got a big sum to manipulate the market.
- Buy at the dip, sell at the tip.
- Never buy an Altcoin except you see it dropped a little.
- Have some patience.
- Do everyday analysis.
- Most importantly, regardless of price or 24hr change, get all the Bitcoins you can get. Hold for some years (5 to 10 years) and sell after your desired profit is met.
Buying and holding is a technique you’re most likely familiar with when it comes to investing and making money with cryptocurrency. You purchase some sort of an asset (like stocks), you let interest build-up, and then you eventually cash out. It’s the same idea in buying and holding crypto, except that you are waiting for the price of your chosen currency to go up so you can sell at a rate higher than when you bought. This is one of the best and easiest ways to make money in cryptocurrency.
Ultimately, you should practice trading before you invest any real money. This is crucial because of how volatile the crypto markets are. It is very important that you get familiar with how much prices fluctuate and how they respond (or don’t respond) to news, events, and macro factors. And also learn from others to ensure you’re comfortable with trading before investing real money.
It is true that cryptocurrency is all about making your money double within a relatively short period of time. But there is also the same amount of risks involved in it. You could end up making no money at all and losing all of your assets while trading. The idea is that you will make a profit from trading cryptocurrencies in any case, the point is how much time you need to learn all the nuances of trading and how many losses you need to experience. For newbies, we recommend you start trading with a demo account. It operates exactly the same way a real account does, the major difference is that you don’t use real money, so all your losses won’t influence your financial position.
While there are several Altcoins available, it is better and safer to invest in the big four – Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC). These coins have had a good time in the game and are very safe to invest in. There are some coins that are new and very cheap to buy, but the risks are higher as such coins could suddenly seize to exist. Cryptocurrencies that have been around for a long time are more secure to invest in, with lesser risks.
As a Newbie, I am continuously browsing online for articles that can be of assistance to me. Thank you
You really make it seem so easy with your presentation but I find this matter to be really something that I think I would never understand. It seems too complicated and extremely broad for me. I am looking forward for your next post, I will try to get the hang of it!