Many people enter crypto because of FOMO, etc. without a strong knowledge base. so many people invest or trade carelessly (I consider them uninformed or maybe gamblers). you don't want to enter crypto only to lose, right? You don't want to have been in crypto for a long time but your portfolio doesn't grow. So read this article to the end, okay?
Why Invest in Crypto?
Bright Future: Many experts believe that crypto will be the future of finance. So, crypto investment can be the first step for those of you who want to become successful investors.
Mass Adoption: The adoption of crypto from the traditional financial sector is currently starting very intensively. There are even countries that use crypto as a legal means of payment from the country. However, there are still some that make quite strict regulations for crypto itself. Even so, the adoption of crypto continues to increase from year to year.
Advanced Technology: Crypto uses blockchain technology, where in this blockchain technology is very transparent and very secure. This makes blockchain technology very suitable for application in various sectors, especially finance. Imagine a country that uses blockchain in all its sectors, then it can be guaranteed that there will be no corruption in that country.
Easy Access: You can buy crypto anytime, anywhere, and anytime. Even friends who do not have a diploma can access crypto very easily
Potential for Big Profits: Crypto prices can increase many times in a short time. From this mass adoption, the demand for the crypto sector will continue to increase.
And others
But, Be Careful Too!
Crypto investment is not as easy as imagined. There are several risks that you must understand:
Coin rugpull: Where we wrongly buy crypto assets that are not fundamentally strong, like we invest in fake startups. So adequate knowledge is needed if we want to enter the crypto world
Fluctuating Prices: Crypto prices can fluctuate very quickly. So, be prepared to have your mentality tested.
Risk of Loss: If you are not careful, your crypto can be lost due to being hacked or forgetting your password.
Unstable Regulation: Crypto regulations are not the same in every country, so there are potential unknown risks.
and others.
Crypto Investment Tips
1. Diversification
Imagine you only have one type of crypto. Well, if the price suddenly drops, your portfolio could be destroyed immediately. That's why the main trick in crypto investment is diversification.
Large-cap: Be a wise investor by choosing large cryptos such as #bitcoin ( $BTC BTC ) and #Ethereum ( $ETH ETH ). They have proven to be solid and have strong fundamentals.
Mid-cap: Don't forget to explore the rising cryptos. They have high growth potential, but still be aware of the risks! For example, Cardano (ADA) or #solana ( $SOL ).
Small-cap: For those who dare to take risks, you can try investing in small cryptos. The potential profit is indeed large, but the risk is also higher.
2. Stablecoins: A Safety Net When Markets Panic
The crypto market is very volatile. Sometimes it goes up, sometimes it goes down drastically. Well, just in case, allocate some of your funds to stablecoins. Stablecoins are like digital money that has a stable value, so it can reduce the impact of market volatility.
Don't underestimate stablecoins, because with stablecoins we can use them for future trading, staking, pools, and others. There is also a very good stablecoin innovation from Binance, namely $BFUSD. Where we can use the stablecoin for futures and earn at the same time.
Project Evaluation: Know Before You Buy
Before buying crypto, it is mandatory to do research.
Technology check: Is the technology innovative and has the potential to change the world?
Look at the development team: Is the team experienced and credible?
Study the roadmap: Does the project have a clear long-term plan?
Observe the community: The bigger and more active the community, usually the better the project.
Tokenomics
Tokenomics is like the rules of a crypto game. Understand how it works, the supply, and the token distribution mechanism. This can help you assess the potential profits and risks of a crypto.
Rebalancing: Adjust Portfolio According to Trends
The crypto market is constantly changing. So, it is very important to rebalance your portfolio regularly. Sell underperforming crypto and reinvest in more potential crypto.
Bonus, Crypto Narrative that will be hype
DYOR, this is just my view. In my opinion, the crypto narrative that will be hyped in the future is:
- Biotech
- Shoptaiment
- SocialFi
- AI
- NFT (already started, but not finished yet)
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
