Crypto related content: news, interviews, and more.
Cryptocurrency trading and investing can be a great way to make some extra money, or slowly grow wealth over time, but it's essential to go into it with your eyes wide open. There's a lot of hype surrounding cryptocurrency, we’ve all seen the flashy banner ads, we’ve all received the spam emails, you know what I’m talking about… and it's easy to get caught up in the excitement especially if you are new.
And I say this, knowing full well, that we are in a bear market. In fact, it is what made me want to write this in the first place.
Crypto prices are highly volatile (if you couldn’t already tell), and changes can significantly impact your portfolio. That's why it's vital to follow legitimate crypto news sources, and in general, sources of high-quality crypto information.
While the popularity and adoption of cryptocurrency continue to grow, the current bear market is forcing many people, new or old to become skeptical. And oddly enough, skepticism is exactly what is needed at this time.
The idea that cryptocurrency will make you rich overnight is a trendy one with the Twitter zoomers who are usually paid to shill all kinds of nonsense projects. Trading and investing in cryptocurrencies can earn people a lot of money, this was especially true in the early days, but most newcomers nowadays won't become rich overnight.
Trading cryptocurrencies requires a lot of dedication, hard work, and to be honest, some luck.
Some have made a lot of money, but they are usually the exception rather than the rule.
Reality: Crypto is not a Get-Rich-Quick Scheme
Investing in cryptocurrency can be a great way to make long-term money, but it's not a get-rich-quick scheme. Sure, we’ve all read the stories about thousand X growth. Heck, I’ve even written a few. The reality is that you must be prepared to hold your investment long-term and be comfortable with all of the risks involved.
Cryptocurrency can be a very volatile market, and prices can fluctuate rapidly, or as we’ve seen in recent times, completely fall off a cliff. It's crucial to do your research, read high-quality news sources and invest only what you can afford to lose.
Most new people to crypto expect that Bitcoin is the sole asset they need to focus on when trading. Whenever someone talks about cryptocurrency, Bitcoin instantly comes to mind because very few newcomers have the knowledge and awareness of the entire crypto market which is literally filled with thousands of different currencies.
In the mainstream media, Bitcoin continues to be the most popular cryptocurrency talked about.
There's no denying that many people are interested in investing in only Bitcoin. We call these folks “Bitcoin Maximalists” or “Maxi’s”. However, it's important to remember that other available assets can be just as profitable or actually, far more profitable but of course potentially far riskier.
Most modern exchanges will offer hundreds of other cryptocurrencies too. Do your research, read the right things, and always, always, read other opinions, especially the negative ones.
Many newcomers think that because cryptocurrency can be stored on their desktop, phone, virtual wallet, or hardware wallet, it is as secure as the money in their bank account. This couldn’t be further from the truth.
The fiat money all of us crypto enthusiasts like to talk bunk about frequently does have some positive attributes such as being able to be insured and protected by a bank.
Unless your crypto is insured by a third party, which was once super-rare by the way (becoming less so), and you own and or control your own keys, well, your crypto is about as secure as an online password. And for some, that’s not very secure now at all.
Cryptocurrency is a target for hackers and criminals because it's digital and in many cases, wallets and keys are connected to the Internet. But also, because there is no central authority, which is one of the reasons crypto is in fact so popular, that means that there is no authority to protect users' funds or insure them should something happen.
Hackers can and do frequently exploit backdoors and general security flaws to their advantage. Stealing funds or breaking into exchanges is not uncommon. Again, it all comes down to research. Ask yourself, has the wallet or exchange you plan to hold your crypto with been a target in the past, have they ever been compromised, or do they offer first-class security infrastructure?
It was challenging to buy cryptocurrencies and trade with them once upon a time. It was hard to buy these directly from the owner and even harder to find a reputable, and reliable exchange that could be trusted. It made it nearly impossible for the average person to get into crypto, hold, store, and trade that crypto.
However, things have changed dramatically in recent years. Now, plenty of exchanges in most countries allow you to buy and sell cryptocurrencies quickly.
Crypto trading and investing has become as quick and easy as hailing an Uber. All you need is an account with a broker or exchange that offers the assets you’d like to trade or invest in and of course if you’re a newbie and would just like to have a play around, an exchange that offers a small and affordable deposit.
Some brokers and exchanges don't require KYC (Know Your Customer) verification which means that you can get started immediately, while many other larger exchanges will require some form of verification, and of course, there are also decentralized exchanges which are a completely different story that I’ll leave for another time.
As always, let me know what you think in the comments below.