A crypto is a digital currency that operates independently of a centralised authority such as a bank or financial institution.
Cryptos arose as a result of unstable economic conditions. They were created by ordinary people, for ordinary people, to protect assets from economic downturns and unjust governments that might take them away.
The crypto market is unconventional in that sensationalism is a major factor for a token’s growth. Meme coins, one category of cryptocurrency, are a phenomenon because of their ability to make investors rich despite providing no utility; they erupt due to community efforts.
The crypto market is famed for its volatility, but investors are also able to utilise it to make a solid stream of passive income. Here are five tried and tested ways that you can invest in crypto while minimising risks and losses.
Use a trusted cryptocurrency exchange platform.
To begin your investment, you must first purchase crypto. However, only do so from trusted platforms that allow you to exchange your fiat currency for the crypto of your choice.
Despite the fact that centralised exchanges currently dominate this sector, they charge high gas fees and processing times can occasionally take hours. For this reason, decentralised exchanges (DEXs) have been rising in popularity.
Calyx Token (CLX) is an upcoming liquidity protocol currently undergoing the first stage of its presale. It’s been stirring hype because of its plans to instantaneously exchange tokens via its swap, while keeping gas fees low.
It will do this via dynamic trade routing, which enables users to leverage the best rate for any token swap on any supported blockchain network by aggregating liquidity from multiple liquidity sources.
With no registration necessary, it could be a great place to start.
Have an emergency fund set aside.
Cryptos are inherently risky. Prices fluctuate dramatically. Before investing in assets, investors should have an emergency fund to cover unexpected costs. It’s critical to have these emergency funds before purchasing any cryptocurrency.
You might be forced to sell all of your assets with a loss margin if you don’t have an emergency fund.
Find the right cryptos for your portfolio
In the crypto market, there are numerous options to choose from.
Diversification is a good idea, as dividing your investment between different cryptos means that if one plummets, all faith is not lost.
It’s impossible to predict which crypto will blow up. Even a highly reliable news outlet could be wrong about a crypto’s potential. But the best way to make a guess is by doing your research, reading the White Paper and judging whether it’s innovative enough to thrive in the market.
Scrutinise your crypto investments
Develop an investment strategy tailored to crypto based on fundamentals rather than social media debates or celebrity endorsements.
Make a long-term investment rather than hoping to “get rich” overnight.
Educate yourself to avoid scams
Last year, the blockchain data firm Chainalysis discovered $14 billion in stolen crypto. Fake websites differ slightly from legitimate websites and attempt to imitate them.
Create a list of reliable news sources that you can trust with crypto information.
Kim Kardashian and Floyd Mayweather Jr., for example, were sued in a class action lawsuit for inflating a token which then crashed, and then the creators vanished.
Enter the Calyx Token (CLX) presale now: