Hi Fam!
So in these series, I am going to be sharing with you profitable strategies with which you can use to invest and be profitable in the ever dynamic and challenging world of the Cryptocurrency Market.
The Basics
It is my belief that we all know what the Crypto market is all about. Else why are we here (smiles). But for some reasons, some persons might still be confused, hence I'll briefly work you through the basic thing's you should know about Cryptocurrency. Here we go!
Cryptocurrency or crypto as some might call it,, is any form of currency that exists digitally. Basically, it's like money, like your dollar bills, but in this case, it only exists in the digital world. But Instead of being a physical one dollar bill carried around and exchanged in the real world, transactions involving cryptocurrencies happen through digital entries in an online database. And the cool thing about them is that they use cryptography to secure those transactions, making them more safe and secure.
Unlike the dollar bills, cryptocurrencies exist without the involvement of a central issuing or regulating authority. instead, they rely on a decentralized system to record transactions and issue new units. This allows for greater autonomy and security.
The first and most well-known cryptocurrency is Bitcoin, which was founded in 2009. One of the core reasons why people are interested in cryptocurrencies is to trade for profit. This has led to significant price fluctuations, often driven by speculators. Another notable example of a cryptocurrency is Ethereum, among others.
Now that we know the basics about Cryptocurrency, let's delve a bit deeper.
Why should you invest in the Crypto Market?
There are many reasons why people invest in the cryptocurrency market. Some of which are; for portfolio diversification, easy accessibility of their funds, payment and financial services innovations etc. But if you are like me, the core reason I am investing in the crypto market is due it's potential for massive returns.
Although the cryptocurrency markets are quite volatile, those who were fortunate to get in early with Bitcoin and other top cryptocurrencies have seen mind-blowing gains. The potential for significant returns has made cryptocurrencies an attractive investment opportunity for many.
Bitcoin initially valued at just a fraction of a penny per coin in its early days has climbed to over $73,000 at its peak as at March 23rd this year. Although it has experienced significant pullbacks since then, life-changing wealth has been created.
What about Notcoin that was enlisted just few days ago at an opening price of about $0.00055? Now Notcoin has made an all time high of about $0.036 and is currently trading at $0.024 on Binance. That's about 4200% gain in just a few days. So you see what I mean? This is why we are here.
The Importance of Research and Due Diligence Before Investing in Crypto
The fact that there's still plenty of room for more upside potential doesn't mean you have to jump into the market blindly. You must have a strategy in place, if you must survive.
Simply put, a trading strategy is a plan that guides how and when to buy or sell assets for example stocks, currencies, cryptocurrencies etc to maximize profits and minimize losses, using methods like technical analysis, fundamental analysis or sentiment analysis.
When it comes to investing in the financial markets generally, there are risks involved, and the world of crypto is no exception. This means that investments in cryptocurrencies carry inherent risks, and this is why it is crucial to conduct due diligence before investing in any cryptocurrency.
What is this due diligence that we are talking about? Due diligence is simply the process of thoroughly researching and analysing on an investment opportunity to understand the risk and the potential returns. In the context of cryptocurrency investment, due diligence means diving deep into the cryptocurrency itself to understand the team behind it, the market trends, and the regulatory environment.
By doing your due diligence, you can make more informed decisions and potentially reduce the risks associated with investing in cryptocurrencies. It's like being a detective, gathering all the information you can to make sure you're making a smart investment decision. Just remember, while cryptocurrencies have the potential for big rewards, they also come with inherent risks. So, be cautious and do your research before investing in any cryptocurrency.
One of the most significant advantages of conducting due diligence is that it can help you to mitigate risks. You see, the crypto market has a reputation for volatility, with price changing very quickly. So you see that doing proper research can help you identify potential red flags and avoid investing in a cryptocurrency that is likely to fail.
Another benefit of due diligence in the crypto market is that it allows you to understand the market trends. As I have already mentioned before, the crypto market highly volatile and prices can fluctuate significantly in a short span of time. However, by grasping the underlying factors that drive the market, investors like you and I can make more informed investment decisions.
In other to prevent this from becoming very long write up, I will l section this into a series. In my subsequent post, I delve deeper into the different profitable strategies with which you can invest and potentially make make substantial returns.
Let me know what you think in the comment section.
Thanks for reading.