If you’re reading this, you’re probably already invested in crypto, and that’s awesome! I think those of us that are learning about the space and the technology are still light years ahead of the general public.
In this article, I wanted to share a few experiences I’ve had over the short time I’ve been in crypto without really knowing what I was doing, bringing me to my main point of this article, jumping into crypto sooner is better than later! Even if you don’t completely understand what you’re doing, I still believe this, and I’ll explain.
Over the last year I have dabbled in many different services across the crypto realm. Some well known ones and some lesser known. There are so many companies, organizations, and exchanges out there willing to give new members rewards for using their services. Centralized and decentralized.
You may have heard of BlockFi, it’s a service where you can stake crypto and earn interest. Don’t worry, I’m not trying to sell you on it, I’m just using it as an example. I had been staking USDC on BlockFi and I went into my account one day and was surprised to see I had received $0.75 of Gemini USD in addition to my USDC.
They were doing a special promotion where they gave people a small amount of GUSD to members who made a deposit to BlockFi during a certain time period. $0.75 is a very small amount, I know, but my point is that if I had not been experimenting and investing in crypto services like BlockFi, I never would have earned that reward.
2. Staking & Compound Interest
They say the 8th wonder of the world is compounding interest. And in the world of crypto, there are some services where the interest compounds daily, as opposed to fiat interest accounts which might compound monthly. There are a lot of services out there that let you stake all kinds of crypto, and I’ve found a few that I like. (I mentioned BlockFi above)
Jumping in on staking and earning interest sooner rather than later shouldn’t be a huge shock. This idea is the same as any investment. If you invest money today rather than tomorrow, you will have more money lol. But what I really love about daily compounding interest is that you don’t have to wait a month if you were thinking of withdrawing your funds to earn the compounded interest.
I don’t really know how long airdrops have been a thing in the crypto space, but they seem to be huge going into 2022. Airdrops of coins and NFTs are going crazy. There are so many out there it’s nuts.
If you don’t know what an airdrop is, companies or organizations will sometimes send users rewards in the form of new cryptocurrencies or NFTs. There could be a requirement to receive the airdrop, such as holding a certain token. This is usually to help promote a new cryptocurrency or NFT project. Sometimes companies do it for marketing, sometimes it’s to reward their users for holding another token they created.
So this one is pretty self explanatory, the sooner you get into crypto, the sooner you can possibly receive an airdrop. Please be careful though, anyone can make a token. And you should never have to pay anyone to receive an airdrop. If they’re asking for crypto or money in exchange, it’s likely a scam.
This last point is another obvious one: crypto markets are extremely volatile. And this can actually be a good thing. I would say the majority of coins go up over time. And keep in mind this statement is just my opinion. No one knows what the crypto markets are going to do. Nobody. Anyone who says otherwise is a liar. But when I look back at certain cryptocurrencies I was thinking about investing in just 1 year ago and see how they’ve returned 100x over just one short year, I regret not throwing in a small amount of money and letting it snowball.
Getting in on crypto sooner is always better, in my opinion. If you had gotten in on bitcoin years ago, 100x returns were not out of the question, whereas now your returns might be 2x - 5x if you’re lucky. And I think even if you get in now, you will make a better return than if you invest the same amount of money years in the future.
So the point here is that your small investment will go so much farther the sooner you invest it instead of a year farther down the road, that is if that coin does go up. With over 50,000 cryptocurrencies out there, not everything is going to net you a return.
My best example of this for me is Solana. I didn’t know what it was at the beginning of 2021 but I bought $100 of Solana when it was at $10. It wasn’t doing much so I sold it at around $13. At the All Time High (ATH) in 2021, one Solana was approximately $250. My $100 would have been worth $2,500. SUCH SAD. MUCH REGRET. SO WOW.
Thanks for reading friends!
I hope you found something useful in this article.