When you start earning, the logical things to do are saving and investing. Saving is a method of keeping your money safe regularly for a particular purpose. Investing on the other hand, is a way of multiplying your money by channeling it into a business, a cause or a digital currency. Some of the securities you can invest your money in are; stocks, bonds, shares, foreign exchange (Forex) and cryptocurrencies. In this article however, let’s examine cryptocurrency investment or crypto trading.
Cryptocurrencies are virtual currencies which make use of cryptography to secure transactions. Unlike physical money, Cryptos have no regulatory bodies and are of different types. Some of them are, Bitcoin, Ethereum, stellar, file coin, Helium and so on.
Unlike other investment securities, cryptocurrencies require special abilities and skills to invest in because the trading market is unpredictable. But rewarding. So, if you’re a newbie in cryptocurrency investment, this Glazia chat with Tomi, a crypto trader, will guide you.
The first steps to take before starting crypto trading
Research
Cryptocurrency investment is a field and profession on its own so treat it so. Look up information, research properly, dig deep, then read and understand strategies. Value is always available. Where you obtain knowledge from, and the kind of knowledge you obtain matters in the long run.
Also, imitate Tomi who “read information on websites, watched YouTube videos, followed traders on social media. Even when I paid someone to train me, it turned out the information was everything I had learnt.”
In addition, read books like “The Psychology of Money:Timeless Lessons on Wealth, Greed, and Happiness.” by Morgan Housel.
Get a mentor
Before you venture into crypto trading, there could be someone you have always admired in the Crypto investment. Reach out to them to guide you through your cryptocurrency journey . You’d need pointers even after you’ve acquired knowledge because no one is an island.
This does not however mean that you won’t lose money. Losing is inevitable. But equipping yourself with information before venturing in, empowers you with the right leverage.
Have the money
Although cryptocurrency is a digital world on its own and should be treated so, it requires lots of money for ‘sustenance’. So, have a plan. Have a solid plan before you start crypto trading. Create a standard plan on how and where your income would continue streaming from and which part would go directly into Crypto.
Put simply, do not invest your school fees or money meant for something valuable, hoping to multiply it. Cryptocurrency investment is not a money-doubling scheme.
Tomi puts it best.
“Even Warren Buffett makes roughly 20 percent for his investments annually but a trader somewhere in Lagos is trying to turn $200 to $500 in three months. Yes, you could have a crazy stroke of luck but it’s never going to last long.”
Trading is rewarding if you pay the price and are patient. “Time is a revealer so be patient”.
Platforms to start with:
Start with Binance, Tomi advises. It is an ecosystem that encompasses it all. “I like to think of it as your office and bank” concentrated in one place. Binance is a platform where you can trade, buy and hold over six hundred cryptocurrencies. Binance offers peer-to-peer trading, borderless payment technology where you can reach more customers and buy and sell Cryptos with them.
Also, they are flexible for newbies. That is, you can easily find your way around; it offers low trading costs, and much more.
Coins that are promising :
I can’t particularly say but I’d point out category of coins, Tomi says.
First, exchange coins. These are coins that are provided by exchange platforms like Binance. They have performed well over the years so they are trusted. On these exchange platforms, you can convert one coin to another. For example, bitcoin to litecoin.
Another trusted one is decentralized finance. Although its noise has reduced, there are still gems as long as you can do your research. “Check their use case, total market of coins, the ones currently in circulation, the team behind it, and so on.”
Finally, web3 and metaverse coins such as bitcoin, Ethereum, litecoin, and decentraland, Axieinfinity, and The Sandbox. “Right now, that’s where all the craze is, where money is being pumped into,” Tomi says.
Article written by Sola Tales