Authored by: @hetty-rowan
It is a simple fact that we are all convinced here of the future of the cryptocurrency. If it wasn't, you wouldn't be reading this article right now. But when we talk about the fact that we are all convinced of the future of cryptocurrency, then of course we also want to get the most out of it ourselves. And how do you do that now?
Not just one way
There are a number of ways. To begin with, you need to do your research on the cryptocurrency you are interested in. Find out what the basis of the project is. Find out what kind of team is behind it, review the team's vision and read the whitepaper carefully. What goals has the team set for this cryptocurrency, and how do they intend to achieve these goals? Is there a particular problem that is solved by this project? And how transparent is the project? Is there a clear differentiator from other cryptocurrencies? And if there is no differentiator, how have similar cryptos fared in the past and how are they doing now? If you see that a comparable crypto has dropped to $ 0.001 after its ICO, for example, and has been hanging on it for 2 years with a margin of 5% up or down, then it makes little sense to put your money into it. However?
If you are convinced of the possibilities, believe that this project really has a future… and you see room for the current course to grow. Then it's a way to invest in that early and by doing nothing more than having patience and holding your tokens to watch your wealth grow. That is one way. And often in a way that can yield a lot. It's being patient, keeping faith… or simply forgetting you've ever made a SMALL expense. Just look at the people who bought Bitcoin for the legendary amount of just $1 per Bitcoin in 2011. Anyone who has had confidence and patience all these years… will certainly clap his hands now and the world cannot be broken anymore. And oh, how I wish… Well, I wasn't there. I had the chance to buy Bitcoin for 10 euros each, and laughed at the provider very hard when… Yes seriously! If only I had looked into my crystal ball, then I would have clapped my hands and put all the savings I still had in Bitcoin at the time. Anyway, that has not happened either, and in these days I am already happy when I can only buy a fraction of 1 Bitcoin at a time. Is it too late? No we are not too late! I am now firmly convinced that cryptocurrency is the future. But… there is more than just Bitcoin! And therefore it is important to keep an eye on new projects. To investigate what they do, what they stand for, what their goals are, who the team is, what the vision is, what problem they solve, etc. A long list to look at. But it can be so rewarding to do this. And yes it takes time. But believe me, I like to spend that time! Because you know what it is, in my case… I don't have much to invest, just don't say anything… so when I buy a coin, I certainly don't want to lose on it!
So here we have a strategy for taking advantage of the cryptocurrency. Earn on a rising price of the crypto by buying it low. Hold on and watch your ability grow with the price.
It may be clear that to apply this tactic, there must be a lot of confidence in the cryptocurrency in question. And the earlier you get in, the higher your profit can be!
Take advantage of the volatility
But this is just one of the strategies you can use to take advantage of the cryptocurrency. It has been said before, and we all like to use the term ourselves. Cryptocurrency is volatile! Take advantage of this!
Precisely because the price of cryptocurrency is not stable, you can achieve very high profits through trading. But depending on the way you do that, you can also suffer big losses. So be careful. But if you are careful your assets can grow nicely!
I only used the SPOT markets so far
Now I first have to tell you that I am absolutely not a trader. In fact, until now I've only flirted with small amounts on Binance in the “spot markets”. And even with my small amounts, by paying close attention and applying a very simple principle, I have never lost anything. But those small amounts can grow to the point I needed at the time to then cash it out. Unfortunately I had to cash it out every time, but I assume you don't have to. And then with the volatility of cryptocurrency it is nice to earn if you know what you are doing!
Very simple from my point of view ...
- Buy LOW
- Sell HIGH
Ride the waves
And so you keep an eye on the volatility and market movement in order to be on time every time and to be able to make a small profit per 'flip'. Even with small amounts this is an option. To give you an example. I sent a small amount of Hive to Binance yesterday evening. And after a few little flips, I made almost $1 in profit today.
hey, I already said it was a small amount
Profit is profit, right?
I was able to make this profit, not because I now understand the principle of big traders so well. But because I use my own simple principle. Go with the market movement and buy LOWER than I SELL.
I'm just a beginner
Yes I know, it is really beginner trading. And I would like to read the trading experts' opinions on what I can change in my simple technique. I would like to know how “Margin” trading works. But I haven't got around to figuring that out yet, because for the small amounts that I was able to take up so far, it is actually not that much worthwhile. It is certainly in the plans to find out, so keep an eye on this blog. It could just be that a blog appears about the “Secrets of trading”. Until then, nothing more or less from me than the simple tip:
- Buy LOW
- Sell HIGH
And this within the movements that the market is making at that moment. Which is very easy to see on most exchanges.
Another way to benefit more from the cryptocurrency is to look for a cryptocurrency that AND has the potential to grow in value, but a token that, in addition to the potential to increase in value, also pays dividends. And there are several in circulation… one of those tokens is of course LBI. LBI has certainty of an increase in value, but will also pay dividends in LEO. So that's a double win situation for you. Your LBI grows in value, but your LEO grows too. And that is again based on the principle of HODL.
To be continued!
There are certainly more ways. And they will certainly be discussed soon. For today, I just wanted to stick to these very simple ways that have relatively little risk. If you know a good way, let us know in the comments. I haven't really dived into the DeFi yet. That is also on the program. So again, keep an eye on this blog. To be continued!