Crypto Investing Requires Undersanding
Getting into altcoin investment has taken away all profit, this is a declaration made by a friend after he got into crypto space by purchasing BNB at $606 with a mind of holding it till the end of December 2021.
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How is your Crypto Journey Like?
From the study of how crypto started, the amazing union between the best nerds in the world and punk rock anarchists brought in a baby which was made highly technical and promises to change this world for the better. In clarity, getting into the crypto space requires multiple steps.
- Basic understanding of the crypto/blockchain space
- Download Apps and wallets
- Register for exchanges, authenticators and do your KYC.
Before I continue, kindly know I am not a financial advisor, whatever you are reading here is just a guide that requires you to do your personal research.
It's my 4th year in the crypto space and during these years, I've been able to mingle with different kinds of people, projects, communities and organizations.
Listen, if you are in for money in this space without your readiness to understand the space, you lose your investment in no time.
In July 2017, I started my journey and purchased some altcoins without a prior understanding of the bear and bull markets. Crypto space is a massive adopted market and for its short lifespan, there is a lot of new people coming into the industry with different perspectives.
Do you know?
- The majority of people who invest in cryptocurrencies do not strategize
- They don’t understand why they put their money in certain coins other than profit.
- They think it's just going to be a quick-rich scheme.
Do you want to enjoy your journey in the crypto space? Strategy is the keyword here.
Most time people are confused about which coin to invest in. Well, this post won't reveal a certain coin/token to invest in but will give you a guide on selection.
Considering Coin Through Value
When you look at the value of coin/token, there are three main categories that matter in this case.
- Large Cap Token/Coin E.g. Bitcoin, Ethereum, BNB
- Mid Cap Token/Coin E.g. ATOM, ORN, XPRT
- Low Cap Token/Coin
You may be thinking this coin is 1cent let me buy it, it's really cheap and it may go up to $200, well, that’s unlikely, you need to understand the market valuation.
Now you ask, how is this calculated?
A market valuation is the number of coins or tokens multiplied by their current price and that is overall valuation…
From my understanding of Tokens/Coins through coingecko/CMC, the top 10 coins by rank are considered as large-cap coins due to their market value.
Second category: Midcap Coin… These are tokens with $200M or > value in the market worth. Investing in this type of crypto gets you out of the risk zone but also put you in more well-defined zones. Also, these coins have pretty decent adoption as many media are covering their movement, they have a good team, which makes this type of project have a medium level of risk in sense of investing as you go down the list of evaluations, you have a higher risk.
Low cap: These are tokens/coins with less than 20 Million market value. Investing in a token with less than a 20million cap might be too risky. The reason behind the high risk of these coins is that it is very easy to pump them down or up by the whales.
Summary
I know a lot of people are new to the crypto space of investing and many are worried about how to invest and get profit or how to approach the market and be successful. Yes, it's cool to follow new trends, opportunities, and developments that seem to increase your daily income in the crypto space, but you need to be careful crypto you invest in.
If you are not yet a professional in crypto trading, you can consider staking features in DeFi and record your daily income on your stake. When you stake your crypto, you help the revolution of money in multiple ways. It's a green way of securing the network of your coin, and your investment is a share in the revolution of money.
Watch out for part 2 of this write-up...
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I never considered them, I am a total noob with crypto and just transact everything in Hive-Engine. NGL with that and as possible I sway away from such topics. But maybe I should really start working on learning more about it now, so that I will be knowledgeable also on this field.
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