Off to the market! And what are we buying today? The most popular cryptocurrencies? Floki Inu; the meme coin based on Elon Musk’s dog has gained some steam. Funny how that sounds but the rocket man has cemented his reputation as the king of memes and everything that comes with it. Crypto investing is quite an interesting venture.
Doge, Shiba, Floki…each of these projects hit the ground running with the mouth-watering gains they post. They do this despite not having any tangible use case…well, memes and ‘charity’ are good use cases nowadays. Anyways, ‘numbers go up!’.
So, you are going to ditch your stable coins or some of your previous investments for the ‘next 100x’? It’s human nature to chase trends and the fear of missing out is a huge drive. Investors rush to these hot shots with hopes of reaping from the next possible gains.
This works, sometimes. It’s an uncertain market anyways and anything is possible, but being a successful investor hardly comes from jumping on trends. 50% gains, the rush kicks in. Speculators take the space and the project in question gets mentioned everywhere. The trend goes on, enthusiasts buy in with only a little idea of what the project is really about.
TA analyses, hypes from influencers, gains on trading pairs…these things are enough to sweep anyone off their feet. But regardless of how hot the hype blows, clever investors will certainly do their own research before buying in.
What’s your ‘hot shot’ story? Various tales will surround the rush. Successful or not, conditions differ. But…
Cryptocurrency trends are birthed by an idea or concept gaining relevance over time. Memes, DeFi, NFT…these ideas existed way before they caught the attention of the greater number of people in the space.
The real gainers in any case of these concepts breaking out are the pioneers who believed in these ideas and supported them with their time and their capital. Being amongst the pioneer investors in any concept could fetch you over a 1000x gain as the case may be. This, however, comes with its own challenges.
Chasing trends definitely keeps an investor ‘restless’. Traders are meant to do this normally, but investors who buy tokens with a plan to hold on to them until the gains start coming are meant to exercise patience. Patience is a joke word for an investor chasing trends.
2–5X gains (or some terrible to manageable losses) and the hype dies; then unto the next one. A patient and more enduring investor who makes enough research probably already made some crazy gains from the same project and is still holding on knowing the hype could return with even heavier waves.
Chasing trending projects puts an investor in the way of higher risks and lesser gains as the hype and trends are naturally meant to cool off at a point. Buy high, sell low…a common story amongst trend chasers.
Cryptocurrency investment gives room for countless opportunities, but reaping from them would require clever decisions and a lot of patience too. The more time you spend chasing trends, the more risks you’re exposed to and the more losses you may incur.
Depending on how far the project goes, a lucky investor might make tangible gains from chasing trends, but that only means that a patient investor who invested before the hyped kicked in already made way more. Well, it’s better to make little gains than to miss out entirely, but most times, things don’t work exactly as presumed.
A couple of disclaimers on cryptocurrency investment advice and endless warnings, ‘cryptocurrency investments are very risky ventures…and the earth is flat’. Well, one is a fact; the other is probably another way to look at facts. A little focus will tell you which is which…just a little teaser there, but that’s by the way.
Alright, fact is, the earth is a sphere, and cryptocurrency investments are very risky, but that’s just another way to look at facts. Risks and rewards are related, sometimes this relationship could get toxic. The crypto space has been buzzing for a while now, anyone who took the risk before this time must have reaped from that audacious move. Recent strives by cryptocurrency and blockchain technology have once again flared the hunger to invest in decentralized solutions, but many are still scared to join the bandwagon
It’s human to get scared, but it’s mastery to stay in complete control of these fears and ride against the waves. While some investors are hardly overpowered by their fears, others would need tons of advice to make a choice.
But that’s by the way; Cryptocurrency just like most other investments is a very risky venture, there’s unarguably a more pronounced risk when it comes to cryptocurrency. The outrageous fluctuations and nerve-spinning volatility give it a good place amongst ‘a thousand ways to die in the west’…that wasn’t meant to scare you! For experienced investors and risk-loving individuals (like myself!), volatility is a very tasty stuff, but sometimes it might burn hands.
Before you bought your first stock, you probably made a couple of research and calculations, a very good number of investors do clever research before putting their money on the road; a very important step in investments. Venturing into the crypto space, the scenario is almost the same. But in general, blockchain technology that powers cryptocurrencies glitters with many enticing features which are just too good to be ignored. ‘All that glitters are not gold’, yeah, I’m sure you said that to yourself at some point, but if gold glitters, then you’re closer to hitting gold if the glitters get more enticing.
For a technology, blockchains are one of the most interesting inventions of the past couple of decades, the ability it poses and its numerous applications are certainly one to look out for. Cryptocurrencies aside, blockchains are one of the most advanced computing protocols which are unsurprisingly gaining mainstream attention. An immutable store of data, a flexible network for building almost anything on the internet, the list is endless. Venturing into the crypto space is as good as swimming in the oceans of blockchain technology, getting used to what has been a tangible offset of traditional ways of data storage, internet, finance…to mention a few. Regardless of the risks, these features should make you give it a try.
The Future.
A very quick follow-up to the aforementioned point. The features of blockchain technology are currently under-utilized and for any attentive investors, this technology is just starting to gain global recognition, and the only way is ‘up’! the future of cryptocurrencies and blockchain technology may be speculative, but that’s a common step for inventions poised to change the way things are done globally, taking a look at the bigger picture, cryptocurrencies, and blockchain are one for the future, the limits are beyond reach, better said, there are no limits and impossibilities are just weak words thrown around by people who find it hard to chase dreams. This is the same for cryptocurrencies and blockchain technology.
Cryptocurrency investments are risky, but it is even riskier not to take a close look at the future and your biggest regret might be not securing a part of the future. Stocks will still be a part of the future, same as digitized precious metals and fiat currencies, but cryptocurrencies are poised to be the newcomers and might be an important part of the future. Shaun the risk, secure a place in the future, try making your way into the crypto space.
The Fortune.
I seriously resent the idea of cryptocurrency investments as a “get rich-quick scheme”. But it is hard to ignore the fact that cryptocurrency investments make mouth-watering returns. For investments in the last decades, cryptocurrencies have made the biggest return on investments, posting up to 20X gains. The ‘fast money’ idea is surely an unhealthy one and an investor who really wishes to be successful in the crypto space must first get rid of this orientation and embrace the technology and avoid being over-expectant of their crypto bags. Regardless, there is an already proven fortune in cryptocurrency investment, but just like every good thing, this takes a lot of time and requires some good level of patience and persistence.
Your Tesla stock might have made you some good gains over the past five years, but most cryptocurrencies have made way more during this same period of time, this is unarguable. With more risks come even more rewards, dive into the ocean, take the risks, give it some time, reap the fortunes.
The Freedom
Stocks are great, digital gold are good investments too, but what about an investment that gives you total control over what you own? Decentralization in cryptocurrency gets rid of third parties and middlemen in handling some core financial activities such as blockchain-level send and receive. The freedom of being able to send a store of value across to anyone anywhere and not worry about exchange rates and delays due to the banks not processing payment, or even decline of payment because of some blurry reasons is something you should really pay some attention to.
Cryptocurrencies come with some enticing level of freedom and privacy in the management of your finance and performance of some core financial activities. Probably this doesn’t sound so clear to you, but here in the crypto space ‘you are your own bank’, guess that sounds better! You don’t need a stockbroker to help you invest in cryptocurrencies, the simplicity makes it possible for a total noob to invest in cryptocurrency and manage this investment. Decentralization in cryptocurrency cuts off the middleman in most core management procedures.
Still need to be convinced, you certainly have your reservations, but if anything can change your opinion, it’s one of these four…
Most cryptocurrency suggestions end with the common phrase, ‘Do your own research’(DYOR). To an extent, I see it as the best way to describe the unpredictable nature of everything about the crypto space, every ‘advice’ are mere suggestion and even the ‘professionals’ get it wrong many times. Getting it right most times is even an extremely hard feat. Getting it right every time is utterly impossible, a 70% accurate cryptocurrency advisor is just an illusion, 50% accuracy is almost impossible too, as a matter of fact.
Predictions in cryptocurrency are mere speculations, hence the phrase ‘Do your own research’ charges you to be a master of your own decision and the repercussions of its failure. While these rampant suggestions also form a part of your research resources, their influence on your final decisions is actually your liability as the influencers do not answer for the failure of your decisions.
Hence, you’re literally ‘on your own’. Looking for that cryptocurrency gem to invest in? it actually sounds easier than it really is, despite the fact that it already sounds tough. Just as experienced investors will say, ‘make your decision and stand by it’. Predictions of any kind are 10% calculation and 90% luck. Getting lucky is the only way to get it right, getting lucky is not assured, unfortunately.
Scoring high chances of getting your speculations right and getting lucky in your cryptocurrency investments involve some vital steps of calm inquiries, research, and calculations. The cryptocurrency space is made up of over ten thousand ‘exciting’ projects and new projects coming up every day with equally exciting concepts and clever moves, one will be moved to invest in almost all of them.
Regardless of how much you diversify your cryptocurrency portfolio, you still leave out the majority of the cryptocurrency projects, and each one you leave behind reduces your probability of getting it right with your investment as every one of them stands some chance of making good returns on investment. On the other hand, doing the impossible and buying into as many projects as possible also places you at a higher risk of running into losses, diversification may seem to be the best approach, but in the real sense, it could backfire badly. Streamlining your investments still harbors the bigger risk but is poised to give the best return if you get it right with your streamlined portfolio.
Decisions backed by research are the best approach, making the right inquiries in the course of your research hence becomes equally important. In making your research, some important aspects of the project should be surveyed carefully. Short-term holders and traders certainly have a ‘smaller’ decision to make. Traders could derive their next moves by looking at the seven (7) days price chart of the coin/token and predict the next move by other buyers using human behavior theories. This is very hard, however, investors intending to hold on to their investments for a long time certainly have a harder decision to make as there comes to the need to apply the traders’ and short-term holders’ strategies and as well many other calculations and speculations to arrive at a safer decision.
Just like stocks, gold, and other similar commodities cryptocurrency price movements depends on market trends and the utility of the token. While short-term holders and traders can simply ride with their predicted market trends and take their profits in a short while or simply get out of the trade to minimize their loss, long-term holders expect to hold their tokens/coins for a much longer time, ride with the fluctuations and stay through the adverse times hoping to reap from their persistence and patience at the long run. Hence, careful prediction of the long future is essential.
You should consider the idea behind a cryptocurrency project. Many cryptocurrencies are mere bogus terms with infeasible proposals and concepts. Jumping into such projects is likely to backfire in the long run. Utility is the first thing to look out for. How possible is the concept proposed by the developers? What are the possibilities for developing their proposed solutions into workable prototypes? and what are the possibilities of these prototypes being really applicable to the problem that it hopes to solve?
A project which offers real solutions to problems stands more chances to make massive returns on investments if it finally proves to be a solution. Unfortunately, many cryptocurrency projects make their proposals as flashy as possible and present mouth-watering roadmaps which all end up being mere proposals that may never be realized. Sieving out such projects hence requires an in-depth look at current efforts made by the developers and how workable their current prototypes are. This will give a better insight into the future and enable the investor predicts the future with more information.
Regardless of how feasible a proposal is, it requires capable hands to materialize it, a capable team is also a vital factor to consider before any cryptocurrency investment. How experienced and qualified the team members are increasing the chances of the project’s success. A good team is as important as a feasible goal. A good team knows how best to steer a project toward the right path. Before investing in any cryptocurrency project with a good vision, endeavor to survey the team’s reputation, experience, qualifications, past projects, and leadership scheme. A well-guided project with a good proposal is bound to succeed if other factors should remain favorable, this is also a good point to consider before buying in.
Token generation and distribution schemes could also go a long way to deciding the success of a cryptocurrency project. An outrageous supply scheme scares away investors. Token distribution scheme is also a good factor to consider, who are the holders of this coin/token? And how many tokens are they holding? How many tokens are already in circulation and what is the total supply? Unexplained outrageous supply and distribution of tokens/coins are major red flags.
In practice, a project with a good team and potential utility may override poor token management, however, in a situation where the first two factors are not very satisfactory, risking it more with a poor token supply and distribution scheme is a whole lot of risk.
A look into the community and how the project is being managed is also important. A transparent and decentralized project displays the core virtues of a cryptocurrency project. A good community contributes tangibly to the success of a good project, building a good community is also dependent on how good the management is. A well-managed transparent and truly decentralized project appeals to the cryptocurrency community more than otherwise.
As complicated as cryptocurrency investments could be, good research only improves an investor’s chances of at least not running into grave losses with their choices. The chances of getting it right are also improved, however, it doesn’t assure a successful investment. Sometimes, trusting your intuition might be the best decision to take, good research also feeds your intuition.
If you are a chart watcher, you’ll notice slight price variations on different exchanges. For the majority, this variation is too ‘small’ and ‘not tangible’. Trading price variation across different market pairs and different exchanges is known as ArbitrageTrading. These variations are usually due to differences in demand and purchasing pressure across these exchanges and pairs.
Usually, these variations last for only a short while before leveling up with the rest of the market. Unarguably, the offset in price is usually slight, but they could mean a whole lot…if used correctly.
The popular practice is cryptocurrency traders and investors trading against time and exploiting the periodic variation in values of cryptocurrencies to make gains. Traders are more actively involved in this race against time and demand.
Time and demand play a role in the overall value of an asset, this is a popular concept. But, the effect of time and demand on the value of an asset in different markets is relatively less popular, ‘ignored’ is a more appropriate term. Even in our everyday markets, the price of a commodity doesn’t stay the same in different markets, the cryptocurrency markets aren’t different as regards this.
Market-to-market price fluctuation is commonly overlooked, not just in cryptocurrency but also in mainstream trading scenarios. This market-to-market variation in the value of an asset form the crux of Arbitrage trading.
Differences in price across exchanges can be influenced by the purchasing power of an exchange, this is determined by the ‘wallet weight’ of the traders using these exchanges. The amount of ‘rich buyers’ (whales) in an exchange determines the purchase pressure on the said exchange. This is evident in the impressive spread and high transaction volumes. Such pressure could result in the order books moving slightly faster on the concerned exchange.
Whale influence drives price, more buy force from whales in the market slims down the sell orders while driving the buy orders up and creating good liquidity. This can also go either way, bringing prices down faster. When this happens at different speeds and at different times in different markets, price variation occurs.
This is normal and price variation can be up to 50%. Whichever way the variation goes, provided a difference is created, an Arbitrage trader can swing into action and take advantage of this.
Basically, Arbitrage trading consists of three processes:
Detecting variations in the value of an asset across different exchanges or trading pairs.
Purchasing assets at this reduced price.
Selling the purchased asset at a higher price on another exchange or trading pair.
Easy? Well, not really.
Arbitrage trading is a notably risky venture, just like any other trading activity. However, there seems to be an increased risk, probably why it hasn’t been able to gain huge popularity. Trading arbitrage involves managing a couple of risks. These risks normally arise due to the fast-changing prices and practices of exchanges.
Sometimes the price differences level up after a very brief moment, things could go either way too. Many times, these differences don’t actually exist and the noticed variation is only due to an uneven spread between the buy orders and the sell orders. In the quest to act fast, an arbitrage trader stands a chance of not noticing this development. When this happens, the most possible event is selling at a loss or playing a longer game of time. Sometimes an arbitrage trader could get stuck due to this.
When trading arbitrages across different exchanges for assets that attract tangible withdrawal fees, the risk of losses is increased, relative to the fees. As an arbitrage trader moves assets across exchanges, more spillage and expenses are incurred. To cover up these technical losses, an arbitrage trader must generate a positive net profit. One way to do this is by increasing the purchasing power to maximize the gains. Purchasing power however depends on what the trader can afford, there are strict limits to this.
Arbitrage trading is a game of numbers, speed, and cleverness. Quantity influences the chances of making profits from an arbitrage trade. Acting ‘fast’ is also a vital quality of a good arbitrage trader. Net arbitrage return is obtained by deducting the exchange withdrawal charges and other technical costs from the gross profit. Increasing purchases to compensate for trading and withdrawal charges could also be a good practice. Capitalizing on price variation is profitable practice, however, the sale and buy orders in both markets should be considered.
Thin buy orders on the target market could lead to substantial losses. Inability to win the race against time also results in losses. Best practice would be targeting wide arbitrage in low withdrawal fee assets. This doesn’t come frequently. But when done right, arbitrage trading could prove lucrative.
Whether you are here for the ‘quick bucks’ or for the technology; one thing is certain, you wouldn’t want to lose your investments to price crashes and the constant fluctuations in the values of cryptocurrencies. Regardless of one’s financial status as an investor, good profits delight every investor. But making profits in cryptocurrency sounds easier than it could actually be…well, sometimes it sounds harder anyways.
“Buy low, sell high”; or better still, “buy the rumour, sell the news”. A couple of phrases have been coined to insinuate the best time to buy cryptocurrencies…and the best time to sell them. Either you are buying when the price ‘appears’ to be crashing or you are buying before an official ‘exciting’ announcement by a cryptocurrency project team. For an investor, any of these two times is presumably the best time to invest in a cryptocurrency project. A huge majority of cryptocurrency enthusiasts are in search of times like this.
But if there is any sector where rules don’t exist, the crypto space will surely be one, if not the only. Price movements, use case valuation, projects’ permanence…you name it. Every aspect of cryptocurrency is highly variable and there are almost no experts and everyone appears to be Predicting. These predictions could go either way.
In the same vein, the “best time” to invest in cryptocurrency projects has been a popular gamble. When to buy, when to sell; it would have been very interesting if anyone could tell for sure the best time to do these. Whenever you have a satisfactory gain or when you’ve had enough of the loss, you can sell off your cryptocurrency holding, hence, the best time to sell is way easier to decide.
However, this is different when it comes to buying/investing. Investing in projects at the ICO level is one of the options. Altcoin projects sell several tokens to raise money for the projects’ development and marketing. Tokens are sold at a relatively low price. Investors predict low chances of tangible price drops below ICO levels. Well, this is the case some of the time, but the story could be very different some other times. Several projects have struggled after their ICO and impatient and unimpressed investors move to sell their stakes below the ICO price. For an investor who bought at the ICO price, it wasn’t the very best time to invest.
What’s another ‘better’ time to buy? Dip time? Well, learn to buy the dip…I’m finding it too hard to learn that, lol. When cryptocurrency prices dip, the market is only allowing youto invest. Dip times allow you to buy more at lesser prices, sell pressure overpowers the buying pressure and the market comes crashing. After a 10% price drop, buying the dip looks tasty, depending on how exciting a project’s fundamentals are, investors swarm to get some cheap tokens from weak hands dumping their stakes. However, the 10% drop might just be the first of many to come. When this is the case, prices keep crashing and the dip continues, and yes, the dip continues…lol. When this happens, your “best” time appears to be just a ‘good’ time if at all the project completely recovers from the dip.
Well, ‘buy the rumour, sell the news’. The crypto space is not only an innovative zone, it is also home to the biggest marketing hype and propaganda. When in obscurity about a pending announcement, influencers and holders tend to hype a pending announcement. A SpaceX collaboration? A merger with Tesla? Lol, you could see rumours like this fly around in suspense. But these could lead to huge price jerks running in multiples, the actual announcement most times is unable to impress the already elated investors who hope their investments become the project that flips Ethereum…or bitcoin. Investors take advantage of this to buy before the rumour spreads and sell just before the actual announcement. Sometimes the news is worth the hype and the price uptrend continues, but an investor should have less to complain about if the gains were good.
The best time to invest is relative, largely personal and determined by your willingness to hold on for dear life or to sell at a loss, or profit. It doesn’t get any worse than a terrible price drop, but investors stand a chance of recovering if they can hold on till when the price recovers — if it ever does. It is hard to determine the best time to put your money on the road, but it is easier to develop patience for your investments regardless of when you invested or where the price is at the moment. Cryptocurrency investments are risky and good research only lessens your chances of hitting the rock with your investment, but a good HODLing attitude increases your chances of striking gold with your investments.
You’ve been told to keep throwing in more money on your crashing asset to reduce the average purchase price. Saylor bought over 20k bitcoins at an average price of about $34,000. Considering the difference between the highest and lowest prices he bought them; that’s a long journey and a whole lot of Dollar Cost Averaging (DCA).
Dollar Cost Averaging?
What does that even mean? Well, if you have the habit of buying more of a particular asset even as its price keeps falling down the cliff, then you’re Dollae Cost Averaging, without even knowing the general term for what you are doing. A majority of cryptocurrency investors do this a lot, myself too. A pure show of belief and dedication…or just greed.
Even your favorite Twitter influencer told you at least once to “fill your bags at these prices”. Even as the price goes lower, you still fill ‘those bags’. Dollar Cost Averaging and hoping for better days. Sometimes they come, other times…well, bagholding is also part of the game. If you are an active DeFi participant or a meme token connoisseur, you probably have tons of tokens you might never sell again. You kept buying down the molehill and now there is no way back up the dark pits. It happens.
In a space filled with thousands of projects claiming superiority, it is easy to lure investors with well-crafted promotional pieces. Everything runs down to why you should invest and continue doing that even when it all looks dark, or at least hold on to your investments and not exit the market even when you’re in gains. Influencers use bold words and appear more experienced than the larger majority; sometimes they really are. Other times, they are simply putting out their personal opinions and perceptions. This space still remains the most unpredictable investment option.
The main factors guiding your choices should be your personal convictions through detailed research and experience. External suggestions are only resources to help your research process and shouldn’t form the main basis for your decision.
That being said, Dollar Cost Averaging is a brilliant move…when done right. Getting it right isn’t a mathematical issue too. But consider these…
Before buying more of a crashing asset, questioning the reasons for the loss in value might be important to your decision. Getting greedy when others are fearful is unarguably a good move, but sometimes this could also backfire; in reality, this move is always risky. Taking time to make certain considerations before ‘getting greedy’ increases your chances of averting some disasters. Price may dip badly in cases of irregular acts by the team behind the project you are invested in, this always drives the price nuts and could possibly dip to its last point.
If a crash isn’t due to some extreme reason which affects only the project then there are chances of making a recovery. Pulling a recovery depends on two factors; the project making the right moves and the market reacting positively to its move. Recovery cannot happen without these two factors being met satisfactorily.
Taking a good at the team behind the project and their reaction to the dip is surely an important move to make. How the team is reacting to the drop in the value of their project and how they hope to get out of the ditch. In a situation where the team is already ‘exit scammed’ then this might not be possible. ”Almost impossible” is a better way to put it. Well, ‘impossibility’ is an illusion in space. But if a project team is gone for real, recovery is far-fetched.
Alright, there are chances for recovery; but to what extent? Certainly, if a project is determined to keep working harder after a huge price drop, it is poised to pull back some losses, sometimes the pullback is not relative to the drop. For a project which experienced a 70% price drop, making a 70% gain from their current position still keeps them below their former top level. This indicates the extent to which a project needs to go before a complete recovery. Well, sometimes it is easier to go up from the bottom.
While DCA is plausible and you’ve been advised to invest what you can lose; considering some or all of these also goes a long way to reducing your potential losses…at least.
Got some bitcoin? Congratulations! You’re a bitcoiner; oh wait…
I got my first few satoshis sometime in early 2017; to be honest, I vaguely knew what it means to own even the tiniest amount of bitcoin. If you wonder how I got them — a faucet. Funny, but those were actually a thing then, and they were real. A whole lot of people got their first ‘tiny’ pieces of bitcoin this way. Unlike the rampant fake faucets littered around all corners of the internet currently, bitcoin faucets were real and did pay those who were curious enough to try them out.
My attempt to transfer my first set of earnings from the faucet to my wallet was the real trigger for my curiosity. A wallet, a key phrase, a private key…these were foreign to a total noob. What bitcoin meant; I hardly knew. The process wasn’t a plain one, but yeah, I’m a fast learner. After successfully paying out my first earnings to my wallet, my interest in blockchain technology grew.
The transfer process was swift, but that was the last good thing about bitcoin. Reading through resources on the internet, bitcoin was more than just a means to move vague numbers around…I learned. The mystery, technology, audacity, and future were all caked into one concept — Bitcoin. Well, blockchain technology and cryptocurrency as a whole.
Alright, feel free to call me ‘dumb,’ but I lost those satoshis I earned from the faucet. I might find the passphrase one day. Don’t worry, it’s just a small amount and won’t make the news. The sats were gone but the interest in the ‘future of money’ continued to grow stronger. I got involved in a number of other cryptocurrency and blockchain projects and bought more bitcoin after the 2018 crash. Again, I lost them in a bitcoin mining scam.
Dummy of the year! Or rather, bitcoiner of the year! That’s a more appropriate term.
Holding some bitcoin only makes you an investor. Waiting patiently for when the price gets to your target and selling off to enrich your pool of fiat. That’s a clever investor right there, not a bitcoiner at best.
Cryptocurrencies are unarguably the best-performing assets over the last decade. The financial advantage they give their holders is unspeakable. A successful cryptocurrency investment could be life-changing. Only a few stocks can boast of similar financial performance.
Behind these financial super stories is an attempt to influence society positively (and otherwise) through a number of interesting concepts and techniques. Financial technology, politics, the internet, distribution of communal power and authority; led by bitcoin and supported by other reputable projects, blockchain technology, and cryptocurrency are finding their way into these important topics.
Investing in bitcoin and other cryptocurrencies only wouldn’t make them relevant outside the investment sphere. The deep interest and extra involvement propel this concept beyond the idea of making money and getting ‘rich’. While owning bitcoin(s) is quite a good start, it is, in fact, a ‘start’.
In a space with many voluntary spaces to fill, what is/are your extra involvement(s)? Well, advising your uncles to dip in a few dollars is nice, but not when you lured them to buy the top though. Regardless, you’re more of a bitcoiner than the investor who locked up a few hundred bitcoins in his wallet.
Two contrasting messages; “cryptocurrencies are the best-performing assets in the past decade” and “cryptocurrency investments are Risky!”. Same topic, different assertions, both of them correct. While many have made life-changing wealth through cryptocurrency investments, a lot more have a very different story to tell. While I’m not an advocate of cryptocurrency investment as just a ‘money-making’ scheme, losing out on any investment isn’t pleasant regardless.
Came for the technology, stayed for the money…and vice versa. The majority of participants in this space are clearly interested in cryptocurrency investments’ ability to generate mind-blowing returns in a very short period of time. Those 500% gains in 48hrs aren’t something you see anywhere else; in crypto, it happened very frequently. I mean, who wouldn’t want to turn $8,000 into 5 billion dollars in just a few months?
But more frequently than not, investors suffer huge losses on their cryptocurrency investments. This is partly due to the volatility of cryptocurrency prices; investors have a share of the blame anyways. Stepping into a space like this, the first thing to note is the fact that everything is time-bound. Price rises for a while, it also falls for a while…even your influencers’ shill tweets don’t last forever; it takes a dump to get them deleted.
Well, that’s by the way. It’s exciting to be in a space where constant fluctuation is a norm, it’s the volatility that makes the money, and drains it too. Playing safe is a virtue. Going all in could work; but most times, the story is different. Even when you have invested ‘what you can lose’, it’s still unpleasant to see it crash. In this space, crashes are usual…and harsh.
Informed investing could save you a lot.
One popular mistake is ‘chasing pumps’. It’s human nature to chase trends and the fear of missing out is a huge drive. Investors rush to these hot shots with hopes of reaping from the next possible gains.
This works, sometimes. It’s an uncertain market anyways and anything is possible, but being a successful investor hardly comes from jumping on trends. 50% gains, the rush kicks in. Speculators take the space and the project in question gets mentioned everywhere. The trend goes on, enthusiasts buy in with only a little idea of what the project is really about.
TA analyses, hypes from influencers, gains on trading pairs…these things are enough to sweep anyone off their feet. But regardless of how hot the hype blows, clever investors will certainly do their own research before buying in.
In profits, you should take some
Cryptocurrency’s volatility means an investor could make crazy gains in a very short while. 5X, 10X…these are huge returns; in crypto, they are in fact meager returns and happen very often. Well, they could also go either way at the same pace.
Filled with expectations of even crazier gains in the near future, an investor who already made tangible gains is caught in a dilemma. Cryptocurrency markets are fast-moving, double-digit price drops could happen in a blink of an eye, but selling after some ‘little’ gains might be too early. Despite having hit the initial target, things still look promising.
“This could be a life-changing opportunity”…investors usually have these words running through their mind as the project they invested in continue to look healthier and promising, even after making some crazy gains already. Greed sets in — normal human behavior.
To take profits or to continue holding? Any investor would find it hard to decide, especially when you are just a few steps away from hitting your target.
Take a time to consider some conditions that are personal to you. What was your initial target? Over everything, why did you make this investment in the first place? To pay off your rent or to fix some debts? Probably a very different reason, but the level of importance is best known to you.
Imagine waking up to a 30% drop? Jaw-dropping! It could be the other way around. But either way, what are the chances that you will take this event with your head held high? In a situation where you already hit your target but decided to hold on for a little while but things quickly go south. The regrets are huge, but are relative and could vary depending on the investor and the condition.
Nevertheless, it still hurts to see the project you were invested in making crazy gains after you have sold off your investment. The sideways movement constitutes this dilemma.
With this in mind, selling off your bags at once is a bad idea. Selling them in parts at different targets is probably a better approach. Thing is, selling in parts at different targets might mean you get out of the market with less; but if the price continued to go up, you’ll leave the market with more than you would have if you sold at your first target. If the price drops after you sold a part at your first target; you’ll leave with lesser, but the loss is tamed.
Dealing with the ‘Winter’
Every cryptocurrency investor wants the chart to stay green and never red; at least, until they get to their target and sell-off. Only a few realize that the path to their target is filled with trials and tribulations. Now I said that the religious way, lol. If you’re wondering; I’m one of those investors who want the greens to prevail at all times. I mean, who doesn’t? well, only the guy waiting to ‘buy at a discount
Nevertheless; dips are inevitable, regardless. The chart goes red whenever a holder decides to exit the market, partially or completely. The extent of the dip depends on how many people exit the market and how much control they have over the distribution. This is the main reason why whale movements are studied and dreaded. A whale exiting the market could shake it badly, and the market could ‘tank’ depending on the whale’s holdings.
Dips are not only ridiculous, but they are also (very) poisonous. Cryptocurrency dips are sinister; not only are they sudden, but sometimes they are wild. 20% loss within 20 minutes. It happens faster than that most times, everything a cryptocurrency investor dreads. Well, you were warned. This space is more volatile than chemistry lessons. Poor comparison if you ask me.
For intending investors, the dip time is usually the best time to buy. Maybe the coin is just pulling the strings and you know…as the saying goes, ‘it always shines after the dark’. So, if it’s dip time, then it’s buy time…but that’s not always the case.
The normal idea is always to buy the dip and hopes it doesn’t dip further from your purchase price. Moves like this have come out good sometimes, however many times, the current dip point is just the tip of the iceberg as more dip comes after the initial dip and leaves those who bought the initial dip at loss. Ready to buy the dip? Maybe you should give it a little thought and invest some time in making a little research.
It is very important to study the events which resulted in this sudden slash in price. Getting greedy when others are fearful is unarguably a good move, but sometimes this could also backfire, in reality, this move is always risky. Taking time to make certain considerations before ‘getting greedy’ increases your chances of averting some disasters. Price may dip badly in cases of irregular acts by the team behind the project you are invested in, this always drives the price nuts and could possibly dip to its last point, I mean, the team is gone!
Investing in what you can lose doesn’t mean you should actually lose them; it means you should try and make the most out of them. Making the most out of your cryptocurrency investment takes a level of carefulness and bold moves too. Playing safe should be considered at (all) times.
We lit the fireworks and changed our calendars as we swerved into a year we thought will brew a better story. Well, on a general note for the crypto space, that didn’t really happen.
You could go on about how you made Bezos-level money from shorting the hell out of cryptocurrencies. Sincerely, I’d have bet a few dollars on bitcoin smashing the $100,000 mark in 2022. Such a bad gambler, I know. But the charts didn’t hint at anything this bad.
Fair enough, the charts could have never predicted multiple bankruptcies and a full-blown war.
Hell, of a year, literally, 2020 remains one of the worst years in the 21st century, but for the business sector, 2022 follows immediately.
The tales aren’t really so juicy and our sarcasm might taste like a poorly prepared coffee, but we’ll have to do it anyways. So, let’s go through 2022 again in just 670 words.
Michael Saylor stepping down from his throne at Microstrategy should have been enough sign for us. The bitcoin man probably got tired of saving the space with his firm’s annual profits. It’s just unfortunate, if he dipped in a few billion more, I’d have paid off the fee for a ‘single-issue’ Toyota Corolla. Sorry, that’s an excerpt from a friend’s diary.
Well, steady lads! A friend lost his tuition fee to that LUNAr eclipse, but it’s a good thing that we got a new fun phrase for euphemism. A couple of “Steady Lads” situations got us this far, if 2023 brings forth more, we might have to do better at word-building.
If anything good came from 2022, it is the fact that cryptocurrency projects have learned how easy it is to get away with impoverishing investors. The chronology is similar; reach enviable heights, then crash so badly that your biggest fans look like absolute degenerates. It’s unfair to bring in the word “generates” here, considering the fact that the same word is an important figure in some of the biggest mainstream pumps of 2021. Looking back at how everything turned out, I have no apologies.
A good measure of how bad we had it is that everyone already forgot about how Andre Cronje’s exit from Fantom foundation nearly rugged one of the best Layer-1 blockchains out there. Yeah, I think it’s time to give that project its flowers, even though it isn’t making those multiple profits anymore, for now.
You can’t close a rekt man’s diary without turning to the page where he discovered that the leftovers he ‘saved’ on his favorite exchange have been donated to a charity program and he didn’t even get a pat on the back for being so generous. Cryptocurrency hated the banks so much but still managed to lose out to a nominal Bankman. That hate should grow.
Since Alameda will spend more time in court, how likely is it that we still get that Solana blockchain phone in 2023? There’s a pre-order facility already, I hope a partial refund facility doesn’t follow. On a deeper thought, a $250 Million bailout should be enough to keep the project running. Unfortunately, someone already used that for himself. A silver lining, Solana Blockchain doesn’t stop twice in three days anymore.
I’ll leave you to guess what 2023 will come up with, I’d suggest you don’t expect a pump. Most of the architects of the 2021 pumps are either standing on court podiums, hiding in an exotic location in a third-world country, or buying up the rekt projects that still stand a revival chance. Either way, they are too engaged to pump your bags. The penny coins you are throwing your pocket money on are likely to remain pennies or something lesser…like half-pennies.
Being optimistic for 2022 didn’t stop two neighboring countries from clashing in a gruesome manner, nor did it stop Changpeng from putting out the tweet that almost put out the whole space; but it did help Mr. Trump to raise a couple of million dollars from selling some classic pictures. Hands-off to United States’ 45th chairman though, one of the biggest winners of 2022.
Who else took a big win in 2022? I don’t know your guess and it’s needless waiting for one. Hackers, a straight answer. Hackers had lots of fun over here and banks aren’t this porous. To be fair, they have a solid recovery system. If every alternative fails, getting a bailout from people who print some crispy notes is one way to go about it. In 2023, I suggest we stop throwing jabs at banks, they are badly beating the space currently if we are being fair.
I’d simply end by asking you to share your biggest losses of 2022. It might sound a bit too cruel until someone shares a story worse than yours and you go back to feeling better about your losses. Thank me then and thank you for taking the time to read.
Let’s hope 2023 is a better story; happy new year!
In a space of a few months, I’ve seen an alarming number of people lose their crypto assets. The number of victims is mind-blowing, but the fact that these assets were stolen from their personal wallets makes it even more surprising.
Personal wallets are thought to be a better option for the safekeeping of crypto assets than exchange wallets. Trustwallet and MetaMask are amongst the best mobile wallets to store your crypto assets, this is where the full surprise comes in. Most of these victims stored their assets in either TrustWallet or MetaMask, yet these assets were lost in the most tragic way.
Crypto assets are precious stuff, the thought of losing them is a pain only the bearer can properly explain…I actually doubt if anyone can properly explain the feeling that comes with losing a crypto asset.
Maybe I need to correct an impression; your cold wallets are still safe. These hacks aren’t directly on the blockchain. Perpetrators have developed special social engineering techniques and some good technologies to support their fraudulent activities.
Keeping your assets in a personal wallet is thus not the only thing that keeps you safe. In addition, keeping your wallets ‘safe’ is also vital. It’s a bit complicated, but here are a few tips to help.
Keep your wallet SAFE
Crypto assets are the best items to steal; yeah, that sounds a bit crazy…I know. Thanks to the anonymity features of cryptocurrency, a successful heist of crypto assets are hardly traceable. Perpetrators easily go away with stealing cryptocurrencies, especially when they don’t belong to a big organization. This put individual investors at high risk without tangible external security support.
Mobile wallet users are not only vulnerable to hacks, but physical theft also happens at a high frequency. With these in mind; the importance of keeping your wallets safe can not be overemphasized. Keep it as safe as possible. Yes, your wallet and your phone too.
Just like a dangerous chemical, keep them out of reach. Everyone is capable of siphoning your assets if they get sufficient access to them. For a cryptocurrency investor using mobile wallets, your phone should be private property. This means lesser freedom with how you share them with anyone apart from yourself.
Sounds harsh but you might have to be strict with your mobile phone and disciplined too. Unsupervised use of your devices by any external person is a poor security practice.
If you feel these rules are hard to adhere to, then consider getting a separate device for your cryptocurrency wallets. Probably the best practice.
Keep your Phrase/key SAFE
Here’s one piece of advice, “if you can’t keep secrets, then consider learning them before investing in cryptocurrency!”. Not just cryptocurrency, the internet, and most other forms of investment. Your keys, your investments; every vital detail of your involvement in cryptocurrency should be kept as secret as possible. Now that’s one hell of a task, but one you must perform if you must have a nice story to tell about your investments.
Blockchain-level security protocols are almost impossible to breach without external aid, hackers are aware of this. As a matter of fact, most hacks are actually socially engineered. The easiest way of getting your security breached is through you. Hackers are social engineers; most hacks are done with tips given up by the owners of the accounts. Keeping your security details safe is your obligation. Social hackers devise means to obtain these details or helpful hints about them (your details) from you.
Developing strong passwords is just one step toward your security, keeping these passwords safe is another (more) important step. Each of these is a tedious and sensitive process. A couple of writings on security tips suggest the best practice in password development. Taking a look at these tips, developing abstract passwords is the safest way to do it.
A password without reference to common knowledge of you is unarguably harder to guess. Popular ways of developing passwords such as; a combination of your name, birth date, and other notable dates, hobby e.t.c have simplified ‘hacks by guessing’ in many known cases. An abstract password makes guessing harder for the intruder. However, a strong password not properly stored is in fact weaker than a weak password. It all boils down to one thing; ‘keep it secret, as much as you can’.
Interacting with Decentralized applications (DApps)
Decentralized applications are utility platforms built to interact with the blockchain and sometimes your wallets. They possess connectivity features that allow your wallet connects to the platform. This connection gives the platform certain automatic access to your wallet. Administrators of these platforms or hackers can harness this short-term breach in intact blockchain security to meddle with personal wallets. Original DApps can also be cloned to target unsuspecting users.
For a personal wallet user, ensure to doublecheck the DApp’s website to ensure that you are visiting the right website. Also, do well to confirm the audit report of new DApps. Ensure that the project team is a trustable one and wouldn’t meddle with your assets as you connect to their website.
Watch out for Scammers
All those glitters are not gold. Regardless of how many times this warning is sounded, people still get unhealthily drawn toward shiny things. Shiny ideas, shiny projects, undeserved gains. The simple truth is, “if it sounds too good to be true, then it’s probably not true”. But greed clouds personal cognizance and in the pool of our greed, everything sounds good and everything is possible…like getting $3000 daily from a $1000 investment in a shady mining firm.
Human greed is the biggest tool for scammers, tricking your greed and getting the best out of it. The most tactical scams are simply ones most developed to put your greed to work in the best way. Scams are the biggest threat to every cryptocurrency investor. Falling into one is way easier than you’d think but also relative to your greed level. Greedy investors are more vulnerable. Fix your greed, said it for the second time!
Strategies used to break into user accounts are ever-evolving, everyday birth a new way to get to break into ‘secured’ profiles, looking out for existing and emerging means of scamming investors, and taking precautions to stay safe from them by applying advised security measures is the most effective way to protect your funds and stay safe in the internet
