3 Types of Crypto Investments
Crypto investing can be scary for a lot of people but it doesn’t have to be that way. More and more people start to get aware of the possibilities that this technology gives us. Once in a lifetime, there is a shift, a change usually caused by technological advancement that we push every day. It’s still not late to get in the game. It’s your chance now to invest in the future Apple, future Microsoft, or Amazon as they still are a garage project or startup. Imagine doing that in the first days and taking the profit now. Well, now it’s your opportunity, and let me explain to you how I see it.
I see 3 basic types of crypto investments that actually work and bring in a profit and I will explain in a few words how I see the world. There is no right or wrong option, it depends mostly on your skills, knowledge and how much are you willing to risk. Let’s get to it!
Active Trading (high risk)
This represents your usual trader, same experience, and same actions as on the Forex or Stocks market. You set up the alerts and bots, you buy low and you sell high. Always keep your eye on the market and educate yourself before you take any action. This is a high-risk investment, there are signs that you can follow but the crypto market in this situation is more volatile than any other one but here are some tips that will help you on the way.
Do at least some basic training to be able to understand the charts that you read.
Keep an eye out on the commission, depending on the platform you use, the commissions for each trade can sum up more than the profit you take.
Companies are safer than coins. More and more serious projects are being brought to life and we can see how the world is changing right in front of our eyes. A safer bet but with a lower reward of course if investing in real projects that have a practical use and now just a meme related coin.
Watch the project and keep an open ear to the community and crypto related news. Trust me, the community makes a project. It can be a really good one but if there is no community backing it or calling it a scam, the price going up would not be a safe bet.
Miner (low risk)
This one is pretty straightforward, investing in assets, software, and hardware that will generate cryptocurrency to be converted into liquidity. The initial cost is higher and there are a couple of options. You can mine bitcoin using hardware or mine using geolocation. You can also purchase different hardware from different providers to plug it in your home or internet and earn their own coin as a reward. Gamers for example can invest in art or gaming NFT and receive different rewards or royalty. There is an option for any budget but keep in mind that in most cases for this option, you have to make an initial investment and may contain active costs like the cost of electricity that will be covered over a longer period of time. The good part about it is that the costs have lowered since e beginning of blockchain but also the rewards are harder to get and the income is lower as I’ve heard but more and more new options are appearing on the market that has potential and can change my perspective. There is actually a game that I’ve got my eye on but after I have a more in-depth look into the NFT gaming word, I will share my finding and thoughts with you guys.
Long Term Investor (low risk)
This is the one I like and the one I have all my money on. Investing in the long term and staking it for greater results and greater benefits. The thing I love most about it is the return you can get that is paid out daily or weekly in most cases and that return can be reinvested to generate even more so the end result is more spectacular. Keep an eye open for the ones that you can stake or receive dividends for them. You can also lend USDT or other cryptocurrencies through exchanges like KuCoin (I actually recommend them as they insure up to 100,000$ and you can get a really nice return of around 30% if you play it smart). Find the right wallet or exchange that will generate the best results and have a good strategy. There is a saying, don’t keep all your eggs in one basket in case it breaks you won’t lose everything.
Conclusion
All 3 investing options are good, depending on your strategy and how much you are willing to risk. To be honest I recommend them all but if you are just starting out, to get a good feeling and foundation you should have a diversified portfolio to sustain you in the future even when there are losses.
For myself, I don’t trust all the coins on the market as most of them are scams to empty people’s crypto wallets. I always study the company that I intend to invest and I do that for months sometimes even if it might seem that I am missing out but I am on for the long term and not a get rich quick scheme. I recommend you do the same and don’t forget, those are just my own personal thoughts and experiences and it doesn’t mean they are right or wrong, good or bad for you. I see the world in my own way and I try to share that with the world. Invest safe and always educate before you take any action.
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