This morning I wrote about ways in which one can invest in Crypto-currency. I tabulated the ways in which one can do it but I did not go into detail.
-Buy cheap coins
Below is some detail and possible links where you could actually follow.
I must state from the outset that whenever you invest in crypto currency use money you can afford to lose. This is not to say your money will disappear, it’s just a caution. I must also state that people have lost money in some scams, including me, but that has taught me to be more careful what I involve myself in.
With that out of the way let’s get started.
I am assuming that the people I am writing this for already know the basics of crypto currency.
1. MINING-This is the process by which crypto currencies are created. This involves thousands of computers sorting out mathematical problems.
Mining initially could be done by individuals but over the years it’s become expensive due to the cost of electricity needed and the computing power.
Mining is done by miners, these verify and update transactions on the blockchain.
2. BUYING CHEAP COINS-When Bitcoin was initially sold in 2009 it was at $0.10 at the current price it is over $17,000. Similarly there other currencies which are in their initial stages but with huge potential for growth in the future.
But one has to check a few things before buying.
-What function will coin perform which is not being done by other coins?
-Who are behind it?
-At what stage is it and what potential is there for growth etc
3. STAKING-With staking, you usually buy a cryptocurrency in order to lock it up in a smart contract. Once your stake is locked up you get paid for the agreed period. One of the reasons you are being paid for staking your coins is that it reduces the coins in circulation and hence increases the coin value. Staking is done on Binance and many other platforms. Use the link below to register account on Binance.
4. BUYING AND HODLING-The simplest example of this is if you bought 1BTC in March this year when it was at almost $5000 and held it, by now you should have had $17000,that is a profit of $12000 in 8 months.
Buying and hodling needs you to just open a wallet buy crypto and just wait.
5. TRADING-Most assets can be traded. If you have experience in trading currencies you can also trade crypto. Knowledge of trading is very vital. When trading you are either going to be either bullish or bearish. It does not matter whether the asset is going up or down you can still trade it.
6. ARBITRAGE-Exchanges don’t normally have a uniform price. Some exchanges could have high prices whilst others in other countries could have low prices. Traders take advantage of these differences in price to buy from cheap exchanges and resell to exchanges buying higher. An exchange is a place where you buy and sell crypto.