How to “invest” in cryptocurrencies ?
First at all, I want to specify that regarding to the blockchain ecosystem potential, it is an heresy to use blockchain and crypto like traders use stock exchange. You can’t make money just because you own money, it is a vicious circle.. that led at what you know in 2008.. DeFi has the same problem right now … maybe it would be healthier in the future.
The second thing which I have in mind now is how to secure a wallet. I was using an hot online wallets and I have troubles to access them now .. So you need a cold storage where your funds are secured and accessible 24/7.. I am planning to buy a ledger nano for this purpose.
Now I will talk about which crypto buy and why ? There are few points to remember before :
- don’t invest money you need, just use money you will be ok to lose,
- only buy crypto that have it’s own blockchain (btc, eth, ada, …), not token even if they are stable coins,
- don’t buy to make day trade, you will be sure to loose. If you hold your crypto, then in few years you will be sure to be winning or you will be able to be an actor of the blockchain which own your coins in a near future,
- the blockchain where the coin is issued must bring important technological advances,
- the blockchain that own coin should be open-source,
- blockchain must be adopted by many and be the result of a community mostly technical (there should be a large amount of nodes running this blockchain)
Regarding the points above, I bought :
- BTC in 2015
- ETH in 2018
- ADA in 2021
Every advices in this article can not guarantee you of getting a good deal. XRP should be a good investment following my points but it is not.
Remember this points and you will be ready to be part of the blockchain and cryptocurrencies revolution :)