1 min read
15 Jan

The notion that to get involved and benefit from the crypto world you have to be experienced is not true. Those who have no interest to learn crypto deeply just need to acquire the basic skills like how to buy and sell cryptocurrencies using the major crypto sites like Binance, kucoin, Gate.io, etc. The next important step is to identify crypto projects that offer real world solutions hence have an opportunity to grow. Investors can identify them by doing their own research or following crypto influencers on social media platforms like Twitter and LinkedIn where they can get insights. However, I discourage this option because some influencers are paid to hype certain projects. Therefore, investors should do their own research after getting insights from influencers.

For crypto beginners, I encourage them to start with low risk investments trading Bitcoin because its exposure is low due to its low volatility compared to altcoins. Altcoins pump and dump very fast. Investors can make huge returns here but their investments can go to zero very quickly. Before you start to trade altcoins do a thorough research to know every detail about them. The most important things to check are the founders and developers behind the project, the market cap, circulation supply and what problem the project intends to solve.

Another important strategy is staking. This has little to zero risk because you can unlock and sell your coins anytime you need them. For some you have to unlock at maturity to get the yield/rewards. Before deciding on the crypto coins to invest in, I encourage investors to deposit their money in stable coins like USDT, UST and BUSD then stake them to earn yearly yields from them.

"Holders are always rewarded" This is very true in crypto over the years. Even with very many bear traps along the way, every Bitcoin trader along the cycle over the years has been rewarded. This is clearly evident in the diagram below by checking Bitcoin price yearly. For good altcoin projects, this has also been the case. However, this is untrue for some altcoins which pump and then dumped massively. Hence invest wisely.

Bitcoin yearly prices chart from 2011 to 2021

Cryptocurrency is a game of patience and crypto investors should give time for projects to become recognized and make an impact in the crypto world. It's after this recognition that these projects get backing from investors and influencers. It's therefore important to note that projects can take years to give good returns. What's important is being patient and having faith in the projects you invest in.

Beginners in the crypto world should avoid strategies like copy trading and bot trading which promise huge returns but end up messing them up. Use them only when you're sure of what you're doing.

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