It’s completely normal to have this desire to learn how to invest in blockchain tech and digital assets. You see articles about bitcoin and cryptocurrencies all over the press and websites – but how do you do it? There are several horror stories about people who lost a lot of money… how do you avoid becoming one of them?
It’s not as simple as choosing to buy BNB, BTC, or other cryptos, because there are several variables you need to analyze. In this article, we are going to take you by the hand and show you how to invest in blockchain tech and digital assets like a pro.
What’s the starting point for investing in blockchain projects?
Before you even purchase your first satoshis, you need to master some key concepts. We present them to you under this section – so, take notes!
You need to research every project before you invest
Before you invest your money, you need to know all about the project. That’s how smart investors do it. Nowadays we have plenty of information outlets that make it easy to research crypto projects. Unlike BTC that appeared in 2009 out of nothing, now you have the mediums to research like a pro.
Always read the news and important upcoming events
It’s important to stay up to date with the most important events regarding the projects you want to invest in. You need to see if they are sticking to the timeline and actually fulfilling their promises. If not, then that’s a bad sign.
Check the market capitalization
While you should not simply invest in low-cap cryptos for the sake of pulling a bigger profit, it’s a very important metric. If the project has a solid base, plenty of positive news and a low-cap, then that’s even better.
Check the community and team behind the project
Finally, it’s important to know more about the community and the team behind the digital currencies you want to buy. You need to see if they’re actually investing in creating a community and promoting their project. Otherwise, the price might not move as high as it could.
What are the market cycles?
Investing in cryptocurrencies is not as hard as it seems. The biggest struggle is fighting against indecision, impulsiveness and impatience. Once you control your emotions and you understand the market cycles, it becomes much easier.
Sure, you can trade the market, but it requires plenty of TA knowledge, along with enough hours in the day to actually trade and learn more about it. If you don’t have the resources, then it’s better to trade according to the market cycles – here’s how.
Bullish market
Bullish market is what most people like: the prices start rising, and in the case of cryptocurrencies, they start mooning. This is when the crypto prices grow beyond the 1000% in several cases. However, it’s not smart to start buying during this market cycle for the long term, because these cycles tend to last very little in comparison to bearish markets.
Bearish market
Bearish markets are what people hate: the prices start to crash, and in the case of cryptos, they can crash by -99%. We saw it during the 2018 fall, and we will see it again once this bull run is over. Unlike the bullish markets, the bearish markets tend to last a lot more, in the case of crypto, they last between 3-4 years.
The ideal argument
Simply put, you should buy and accumulate during the bearish market and start selling once the bullish market arrives. Using this strategy, you will be able to pull out an excellent ROI, given that you actually invest in good projects like ETH, BTC, DOT, LINK, UNI, SOL, etc.
By using this simple trading strategy, you will make more money than the majority of crypto traders. You will minimize your risk while maximizing your chances of growing your capital exponentially.
What’s the best blockchain investment advice?
Apart from following our ideal argument for crypto investing, you should only invest money you can afford to lose. We never know how long they will stay, and hence, it’s important to do the following:
- Only use money that you’re comfortable losing
- Always take your profits gradually
- Only invest after you’ve researched a project
- Only bet a very small amount in hyped coins like DOGE. They will always raise, but it’s better to play it safe.
This is how you can start investing like the real players in the crypto markets. Be smart, be patient and you will profit.
Final Words
As you can see, it’s not hard to invest smartly in blockchain and digital assets. It’s only a matter of patience and being smart enough to only put your money in promising projects that can solve real-life problems.