Are you at a loss for the “right” investing strategy for cryptocurrencies? The most popular way is to buy and hold long-term, which was how early Bitcoin adopters did. However, the landscape has changed significantly since those early days. These days, making money in crypto requires constant work or an active investment strategy; the more you swim in the crypto waters, the better the outcome.
The cryptocurrency market is evolving rapidly, with new discoveries leading the next wave of evolution. It makes it almost impossible for investors with outdated outlooks to succeed. Uninformed and inactive investors cannot survive in this space either. Many altcoins from 2013 never returned to their previous all-time highs. We may never see times like the ICO bubble of the 2017 bull run again. Too many projects from 2017 have disappeared for different reasons. Many coins that made waves during the 2021 bull run did not make it to 2022. That is the crypto market, and it is unforgiving.
However, cryptocurrency investment is similar to investing in traditional shares, where companies with solid teams that solve real problems have higher long-term viability. So, how does one navigate the blockchain market? The best way to validate a cryptocurrency project is by using their products and experimenting with them. The era of raising funds based only on ideas and a whitepaper is long gone. Legitimate projects these days launch a fully-functioning dApp and may reward early users with airdrops. These are coins you should keep in your cold storage wallet.
Listing a cryptocurrency in centralized exchanges generates a lot of hype. Newbies prepare to buy these coins once listed, then prices dump, and they get rekt. Veterans, on the other hand, take advantage of the situation. It is an open secret that these newbies only provide liquidity for the veterans to cash out their profits. The question is, how do you become an early bird? DeFi is the way to go, the perfect place to find micro-cap and small-cap coins with colossal potential. Unearthing unique DeFi projects at their early stages could be your window to generational wealth.
DeFi is the place to find these gems with the potential of thousandfold returns. Investors should be ready to take advantage of a sideways market when Bitcoin and Ethereum fail to reach their ATHs.
Any investment carries risks. There is a high chance of bumping into scammy projects or losing money. What should you do? Let’s look at the bright side of things. The only way to find out is to try. It is an opportunity to learn and gain experience. People who have skin in the game experienced losses. In the beginning, they were optimistic and ready to conquer the market. Then they realized that it was going to be a bumpy road. However, they held through the market winter, and now, they’re successful, clever, and savvier.
Once you enter the crypto rabbit hole, you will realize how big the crypto universe is. It is a new industry with plenty of niches and opportunities for everyone. While developers are at the core of developing the blockchain’s infrastructure, there’s a place for everyone – skilled marketers, accountants, content creators, designers, and managers. Everyone has a seat at this banquet.