How To Successfully Invest In Cryptocurrencies

How To Successfully Invest In Cryptocurrencies

When I started to explore the wonderful world of cryptocurrency investing, a life-changing journey began. It is an exciting journey that still continues. This journey of cryptocurrency investing has improved my financial situation massively.

If you do it properly, cryptocurrency investing can also improve your financial situation. For this reason, I prepared some tips on investing in cryptocurrencies for you in this post. I hope that these cryptocurrency investment insights will help you to kickstart your personal cryptocurrency investment journey.


Why You Should Invest In Crypto

There are different reasons to invest in cryptocurrencies. Some are saying that they are only in it for the technology behind it while others are just in it to make a profit. If you are just entering cryptocurrency investing to make a profit then it is totally fine because a major benefit of investing in cryptocurrencies are the quick returns and high yields that they generate. Another big benefit is the fact that you only need a relatively small amount of money to put in and kickstart your cryptocurrency investment.

invest in cryptocurrencies


Basic Understanding And Continuous Learning

The first thing that you need to understand is that you should only invest in stuff that you really understand. Hoping to make a quick buck, while not understanding cryptocurrencies at all is a bad idea. So please, before you invest in cryptocurrencies, learn as much as possible about them.

This advice may sound quite simple but nevertheless, it is essential when it comes to investing. It is a common mistake that people invest their money in stuff that they don't understand and then lose it all. 

You also need to understand that learning about cryptocurrencies is not a one-time event. You have to keep on learning as the cryptocurrency space is very dynamic and constantly evolving.


Making Money By Trading

Some people think that they can trade themselves rich by constantly buying and selling their cryptos. Well, then you are more a trader than an investor. Investing means holding.

So if you want to invest, make sure that you have a long-term strategy. The cryptocurrency markets are highly volatile, which means that the prices fluctuate widely. This can result in your investment being temporarily negative. Therefore, it makes sense to pursue a long-term investment strategy, which in the cryptocurrency market means around a year.

You really have to see that there is a difference between investing and speculating. If you only do some day-trading then you are just speculating but speculation has absolutely nothing to do with an investment.

A better and safer strategy is to put your cryptocurrency investments to work, for example with lending and staking.


Making Money With Staking

Participation in a Proof-of-Stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards is called staking. This means that staking is a process that takes place directly on a blockchain. When a transaction is validated, a so-called block representing that same transaction is created on the blockchain. Validators receive incentives, typically in the form of the respective cryptocurrency plus a certain percentage of the validated transaction. Incentives are also based on the overall amount of cryptocurrencies that participants have staked.

There are different ways to start staking. In most cases, you can “stake” your cryptocurrencies directly from a wallet or an exchange.

However, one of my favorite places for staking is Binance. Binance is one of the most popular cryptocurrency exchanges and it offers different products that help you earn. One of these products is locked staking. Of course, this only works with Proof of Stake coins in your Spot Wallet. If you commit your Proof of Stake coins to be locked for a certain period of time ranging from 7 to 90 days, you can earn higher staking rewards Some staking coins will also allow you to do a Flexible Lock. You commit your funds for staking, but you still maintain the ability to withdraw if you want to.

If you like to know more about the different earning opportunities on Binance, you might want to check out one of my previous posts "Ways To Generate Passive Income On Binance - Earn Crypto While You Sleep" here on Publish0x.

Then I can also recommend checking out Abra which is a wallet where you hold the keys to. The Abra wallet supports multiple cryptocurrencies. So you can store many different coins and tokens from different blockchains in just one wallet.

Make sure that you are using an invitation code like this one when you sign up for Abra (Code: RCNTBTMU3) because then you will get a signup bonus of $25 in $CPRX tokens. You need to verify your account to unlock all functions which means doing a simple KYC. Then fund your wallet with at least $15 in any supported cryptocurrency. Simply hold these funds that you deposited for seven days and you will get paid $25 in $CPRX tokens into your trade account. If you like to know more about Abra wallet, you can check out this post here on Publish0x: Abra Wallet - Get $25 in CPRX Tokens For Free!


Making Money With Crypto Lending

You can also lend your cryptocurrencies to another party in exchange for a guaranteed return of your assets plus an interest. Popular assets for lending are Bitcoin, Ethereum, and especially stable coins.

One of the most popular lending platforms is BlockFi. This platform offers interest-earning accounts, low-cost USD loans secured with crypto, and fee-free trading. It offers some of the best rates for these services, the most flexible structures, and the highest degree of security available in the blockchain lending ecosystem. If you use my invitation link (Code: 4fc341e6) to sign up for BlockFi and deposit $100 or more into your BlockFi Interest Account, we both will receive a sign-up bonus of $10 in Bitcoin.

BlockFi bonus

Then I can also recommend checking out a lending platform called CakeDeFi. This platform helps you to put your crypto to work and to generate passive income easily and uncomplicated. Even the most inexperienced crypto novice can participate. The lending on this platform works in batches starting and ending each Friday. This means basically that your funds are locked during that time which is four weeks. You can choose to automatically enter the next batch to compound your interest.

CakeDeFi also gives you free $30 in DFI tokens on your first deposit. In order to receive this bonus, you need to register on CakeDeFi's website and fully verify your account via an invitation link. Make sure to sign up using such an invitation link or enter the invitation code 528168 because otherwise, you will not receive the full bonus. Make your first deposit of at least $50 in any supported cryptocurrency and you will receive a bonus of $30 worth of $DFI on top.

Please note, that this bonus will be locked up and staked for 180 days. The good news is that the locked-up bonus automatically yields staking returns during this time. These staking rewards will be added on top of the bonus and can be withdrawn after the lock-up period has ended. The staking rewards are paid out two times a day and are not frozen.


My Final Conclusion

See that there is a difference between speculating in day-trades and investing. If you invest in cryptocurrencies, the best thing that you can do is putting your crypto to work with lending or with staking.

Always keep in mind that in the end, you alone are responsible for your cryptocurrency investment decisions and no one else. You should always be able to live with the choices you made in the past and you should never blame anyone else for your financial losses. You should make the decision on your own because you understood the product that you want to invest in.

That's why it is so important that you always do your own research ("DYOR"). However, it is very likely that you will also make wrong decisions when investing in cryptocurrencies. Then it's important that you take the responsibility for your decisions and that you learn from your mistakes in order to make profits from them in the future.

Finally, I hope that I could provide you with some interesting and useful information about cryptocurrency investing and if that's the kind of stuff that you like to read on Publish0x, make sure to hit that follow button.

So, that’s it for now. Thank you guys as always for reading, liking, following, and tipping 👍 

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You may also like: Abra Wallet - Get $25 in CPRX Tokens For Free!


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