Crypto is Decentralized, Meaning No Central Bank or Govt Agency is in control of it. Another unique Part about Crypto is that it's Functional 24hrs a Day i.e Every Month of the Year, Every Day of the Week & you can send Value/Funds to anyone on the internet/around the world as long as you have an Internet Connection.
Why should you invest in Cryptocurrency
Is a Store of Value Due to it's limited Supply of most Good coins which makes it impossible to weaken the Value through inflation.
It helps Diversify your Portfolio. Only invest Money you can afford to loose & also do your Due Diligence.
It could offer Incredible Returns, More Profitable.
Reason Why People lose money in Crypto
It is because People try to do it without any Specific Strategy or Knowledge.
What Should I learn/know before Investing in Cryptocurrency
Fundamental Analysis (FA): Method used to access an Asset valuation based mainly on economic & financial factors. Here is where the fundamental analyst look at the Public Blockchain Data, White paper, Team, Usecase, Market Cap & Tokenomics. The main aim of FA is to determine whether the Assest is Currently Undervalued or Overvalued.
Technical Analysis (TA): They evaluate trading and investment opportunities based on historical price movement or trading activities, they do that by focusing on Price movement, Market Structure, Actions, Chart patterns, Indicators to evaluate the market strength or weakness.
Difference between Trading and Investing
Investing means you coming into the market with an intention to a stay there for a long term. And as an investor FA is an important strategy to note.
Trading you have an obligation to your portfolio to make profit everyday so you're not really worried about what the price will be in 5 to 10 years. As a Trader TA is important strategy to note but that doesn't mean you can not combine the both (FA + TA).
How to identify a Good Cryptocurrency
Through their Project: involves an evaluative approach which looks into the performance of a Project, Team, Usecase, White paper & Roadmap.
Through their Financial Metrics: involves information about Asset liquidity, what a coin truly trade at previously, Market Cap, Volume, Supply, Numbers etc.
Cryptocurrency investing Strategies
One of the Best way to Invest in Crypto is Called Dollar Cost Averaging (DCA). Another investment strategy is Staking (allows one to earn more while holding a coin).
Ways to Smartly invest in Cryptocurrency
Only invest what you're willing to lose
Diversify your Portfolio (hedge against potential risk & helps minimize loss n maximize profit)
Start small then Grow big
Keep your Wallet, Password Safe and Secured
Research (Don't invest on Hype)