Benefits of Investing in Crypto Market For Small Investors

Reasons Why You Need to Invest in Crypto Market

In my opinion and experience, cryptocurrency investment is good for everyone, provided you are in a country where it is legal. Here are my reasons why crypto investment is good.

You can start investing with a small amount: You have $10, can you invest this money in the stock market, in the real estate market, in the mutual funds, or in bonds and security of deposits? The answer is no. Can you invest $10 in cryptocurrency and still make profits? The answer is yes. 

Market risk can be minimized: Let's imagine you have invested $100 in the share market, when the price starts going down, how do you minimize the risk? The only way to stop losing more money is to panic sell. But in the process, you will lose money. However, when the crypto price starts going down, you can exchange your crypto for stable coins and avoid losing your money. You can exchange stable coins with the crypto of your choice once the market starts improving. By doing this you might even earn more profit because you can buy when the market goes too deep.

Earn staking rewards: You can stake your cryptos and earn rewards. Can you do the same with share investment?

Crypto Trading to Earn Profits from Crypto Market

Crypto trading is a good method to make money, however, before you jump into crypto trading, you need to build your knowledge of what exactly is crypto trading, how it works, and what you need to start trading crypto. Crypto trading is the trading of crypto coins, crypto tokens, NFTs, smart contracts, and other crypto assets. This involves buying crypto-assets and selling them when the price appreciates. For example, currently, Bitcoin is priced $38,459. You buy Bitcoin at this rate and then sell it when it comes $40,000. There are different ways to trade crypto, one of the popular methods is you spot trading. Spot trading means you buy one crypto with another crypto that you think will gain price in the future. For example, you have $1000 worth USDT. Currently, sol is priced $86 and you use your USDT to buy SOL and once SOL gans value you sell to make profits. In order to benefit from crypto trading, you need to understand the crypto market properly, you need to understand the signals, and also take the right decision at the right time. It is ok to make a few mistakes as a trader but you don't have the leverage to make huge mistakes.

I am not exactly a crypto trader even though I have done crypto trading a couple of times. I am more of an investor, a long-term investor, to be precise. However, my trading has not been on the losing side until now. I have done three types of crypto trading

Arbitrage trading: This is a process to buy crypto on the exchange where it is listed for a lesser price and the sell on the exchange where the same crypto is listed for a comparatively higher price.  When you are dealing with a lot of cryptos even 15 cents price difference will earn you a lot of profits. Sometimes this can be risky especially when the trading order takes a long time to execute and the price starts going down on the exchange where you want to sell. 

Spot Trading: Spot trading is basically exchanging your one crypto with another crypto with an intention of earning profits. Litecoin is a popular payment option because of its small transaction fees and faster transaction speed. However, based on market performance, it is not profitable crypto. Therefore, whenever I receive litecoins, I immediately spot trade with other more profitable coins, BNB for example. 

I also do P2P trading.

Investing in Digital Land Based on Blockchain Metaverse

There are numerous platforms for buying and selling virtual land, for example, Decentraland, The Sandbox, Upland, Palaneum Metaverse, etc. You need to understand one basic thing about this metaverse as they might be very risky. Imagine you buy some plot of virtual land in Palaneum Metaverse, would it be easy to sell your land and recover your investment as well as earn profits? The value of your plot might double, triple, or even increase by 5 X, 10 X. But if there are no buyers for your plot, what's the point of the high value of your plot.

Profiting from Binance Earn Program

I started using coinbase in 2016. until 2020, I was not using any crypto exchange or wallet, not even Binance. However, at the beginning of 2021, I started using Binance. Even though I was using Binance, I did not use it much as I was still with Coinbase. Then I started using Binance more than coinbase for a couple of reasons, for example, I could participate in the Binance earn program and earn profits on my cryptocurrencies, two, I could do p2p trading. These days I am not using Coinbase, instead, I use Binance for everything from receiving crypto to sending crypto, exchanging crypto, staking crypto, and p2p trading. Binance earn program has a lot of options to make a profit but I am using only the locked staking option because this is the most secured kind of earning program as you not only get a guaranteed principle return but also earn fixed APY on your crypto. Currently, I am staking SHIB, Matic, and ADA on Binance. I have locked my funds for 120 days, I am earning between 10-21 percent APY on my cryptos. They send the rewards daily and when the rewards I receive becomes substantial amount, I again stake those rewards. For instance, recently, my ADA rewards reached 15 ADA, and I staked 15 ADA for 30 days.