Crypto is now recognized as a legitimate and major asset class by all reputable institutions, and everyone should have some sort of exposure to the crypto market. You cannot afford to ignore them, and they could greatly benefit from the current situation we’re seeing with global markets.
With that being said, crypto is still largely misunderstood by a large proportion of the public, and profiting from them is not as simple as getting a bunch of bitcoins and crossing your fingers.
Let’s take a look at a few tips you need to follow if you want to profit from crypto investments.
Know What You’re Investing in
One of the biggest mistakes people make when they get involved with crypto is basing their decisions solely on what they hear on YouTube channels. But you will not be able to truly understand the interest in a cryptocurrency or its potential unless you know the technology behind it.
This will be your only way to understand the problems it is trying to fix, and if it’s a viable project.
You will have to learn about the different kinds of coins out there too.
You have coins that have no speculative value whatsoever, like StableCoins, for instance. These are made to facilitate exchanges between cryptocurrencies, and they operate on different exchanges, so investing in them would be a waste of time for you.
Instead, learn everything you can about things like DeFi coins, utility coins, and payment coins, and what they are trying to accomplish.
This will allow you to make wiser decisions.
Get Your Information from the Right Sources
Make sure that you have a few resources that you can check out to follow price actions, and announcements, and to gauge market sentiment. You should first head to a site like OKX which will allow you to see the current price of hundreds of coins in real time.
You should then amass a list of influencers and follow their platforms. Make sure that they are respected by the community and have a long history of making good predictions. Then look for a few alternative sources like Reddit to confirm any hunches that you may have.
Learn About the Project’s Development Team and Read Whitepapers
Do not invest in a cryptocurrency before reading its whitepaper and knowing who the people involved in the project are. If you don’t understand any of the terms in a white paper, you can go on YouTube and look for critiques of it.
This will give you an idea of whether the project is seen as credible. You also have to know if people respect the team behind the project and learn about some of the projects they’ve worked on before.
Be Patient
Last, but not least, you need to be very patient when investing in crypto.
Have a clear sell of points and do not budge until you get there. You could have different thresholds where you’ll let go of part of your assets, but don’t make the mistake of throwing everything away because a coin is having a sharp decline in the short term.
This is the nature of crypto markets, and they’re not for the faint of heart, so be ready to hold on for the ride even if it seems rough.
These are all things that will help you make money from crypto investments.
Get opinions from as many reputable sources as possible, have a clear strategy and stick to it, and don’t make wild moves.