How to Kick Start your Crypto Investing Journey
Every day we hear more and more stories of people kick starting their investment journey in the world of crypto. Despite some initial skepticism, people are embracing crypto as a legitimate way to make income. But how exactly do you get started when it comes to investing in crypto?
There are several investment strategies and places where one can start their crypto investing:
- Buy, hold and sell: involves buying crypto coins and holding them until the price rises, before selling for a profit. This can be done on exchange platforms such as CryptoSouk.
- Mining: the process of mining coins in the blockchain.
- Create a new exchange platform: another way to make money from crypto is to open an exchange platform and generate income from transaction fees.
- Provide trading advice: offer expert advice to fellow traders on what digital coins to invest in and which to avoid
- Blockchain projects: numerous projects on the blockchain can generate income for investors
Do Banks invest in crypto?
There is an increasing trend globally of banks embracing crypto and harnessing blockchain technology. They see the potential in the technology and are leveraging it to launch their own digital coins. On the flip side there are those banks who are hesitant and prefer to wait for defined legislation which would enable them to invest in the crypto space more freely.
Avoiding Crypto Scams
As with any business venture, when there’s money to be made, fraudulent activity is never far behind. Unfortunately, scams are common in the crypto world, so investors need to trade with caution. Scams can be hard to identify and are often posed as “legitimate” business opportunities that promise a quick digital buck. There are ways to tell the difference between a legitimate crypto opportunity and a scam. Most scams will come in the following forms:
- ICO (initial coin offering): An ICO is used by crypto platforms to raise funds in order to launch a new digital coin. Users invest in the company by buying their coins prior to release, with the goal of making money when it launches and the price increases. However, ICOs are not always what they seem, and investors should watch out for:
– luring investments: a scammer will offer unrealistic high returns to draw investors in.
– high valued tokens: scams often offer coins that are very expensive when compared to other major crypto coins.
- Ponzi Schemes: in a Ponzi scheme, scammers will pose as legitimate investment firms with the aim to steal from investors. The scammers will keep their fake investment firm in the market for short periods before disappearing with investors’ money. Here are things to watch out for:
– high returns: Ponzi schemes will lure you in by promising returns of up to 50% on your investment.
– short operating period: Ponzi schemes are young in market and may only last a couple of weeks.
– pressure to invest: scammers will heavily pressure potential investors to invest their money.
Before investing in crypto, always do your due diligence and ensure you’re comfortable with your investment.
How to Make Profit with Crypto
Making profit from crypto is not always easy due to price volatility. However, there are ways to be smart with your investments and increase the chances of making profit:
- Buy low and sell high: If it seems obvious, that’s because it is. Enter the market at the right time and buy when the price of crypto is low, then sell when the price rises to make a profit.
- Use ‘stop losses’ and ‘take profits’: use a ‘stop loss’ to limit any potential losses when the price of crypto drops. A ‘take profit’ on the other hand will assist in determining the profit you aim to make by placing a mark that is higher than the existing price.
- Buy and hold: this requires patience and being able to ride out the continuous price fluctuations of crypto.
- Dividends: certain coins pay dividends if you hold them long term.
How do I get started?
Getting started is as easy as following these steps:
- Open an account: use an exchange platform such as CryptoSouk to open your trading account.
- Get a wallet: a digital wallet is used to store your crypto coins.
- Link your bank account: this enables you to transfer money to your new account to be able to invest and trade crypto.
It’s as easy as that! Three simple steps to start your crypto journey. Happy trading!
The information contained within this website and resource section is not intended to be a substitute for financial advice or promotional offer on the investment or purchase of Cryptocurrencies, digital tokens or related assets. Although care has been taken in preparing the information provided to you on this site and in the resource section, we are not held responsible for any errors or omissions and accept no liability whatsoever for any damage or loss you may incur through the result of your own actions and decisions when deciding to purchase or invest in Cryptocurrencies or related digital assets. You should never engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. We recommend you always seek financial/or legal advice counsel relating to your investment and purchase circumstances. This material has been prepared for informational use only.