INTRODUCTION TO BITCOIN AND CRYPTOCURRENCY AND BUILDING WEALTH THROUGH THEM
If you are recent in the Crypto Industry, you may have been confused by the methods and terminologies associated with cryptocurrencies. If you have bought, want to buy Bitcoin, or trade Bitcoin, then you should read this!
This will show you the ways to invest and to do it safely especially if you’re a newbie.
WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a digital currency designed to be quicker, cheaper, and more reliable than our regular government-issued money. Instead of depending on your government to create fiat currencies and banks to store, send and receive it, users transact directly with each other and store their money themselves. Because people can send money directly without a middleman.
In its simplest terms, a Cryptocurrency is a digital asset serving as a medium of exchange, Just like we have fiat currencies (A fiat currency is a physical/paper form of currency, e.g Naira, Dollar, Pound, Euro, etc.)
Cryptocurrencies don’t exist in paper or physical forms, they exist in digital/electronic form on the internet, making use of blockchain technology to carry out all its activities.
Examples of Cryptocurrencies include Bitcoin, Ethereum, Binance Coin, Solana, Ripple, Stellar, Litecoin, Dogecoin, etc.
BRIEF HISTORY OF CRYPTOCURRENCY
The concept of cryptocurrency was conceived by Satoshi Nakamoto in the year 2008 when he wrote the bitcoin code and developed the whitepaper. (Whitepaper is a document explaining the purpose of a Crypto Project as well as the roadmaps and future developments, some may include information about the team involved).
Satoshi Nakamoto remains an anonymous entity to date, no one knows if it was a single individual or a team of individuals.
For more details: https://en.wikipedia.org/wiki/Satoshi_Nakamoto
Before the introduction of Bitcoin (the First Digital Currency), the only way to send money was through the banks. 🤦🏽♂️
This implies that the whole world’s financial transaction solely depends on the banks and the government. Any financial decision highly depends on them. It is being fully controlled and regulated by them. 😏
So, Satoshi Nakamoto thought of an alternate way we can send money to someone without actually depending on the banks for our financial transaction, and also without having to bow to any government regulations and policy. 🤔
And that was how BITCOIN was introduced to the world, the first digital currency. 😌
One factor to note about cryptocurrency is the fact that it is DECENTRALIZED
This means that it isn’t controlled by a central government or body. It isn’t controlled by anybody. Another thing to note is that it is transparent. All transactions on it can be seen and checked.
Not like the way people swallow naira without you knowing how it happened 😅
Imagine you want to send $1Million to someone from any Nigerian bank, will that be possible?… Can they allow you to send that without you being interrogated and questioned?
Even if you’re granted permission, do you know how long it will take you to send it? Factoring in their limits, delays, etc
With Cryptocurrency, you can send unlimited funds as much as possible. No limits, no questioning.
You can send $100 Million without anyone asking you anything, at any time you wish, to whichever location you want, from the comfort of your home.
This is because of its true decentralization
You’re not accountable to anybody 😁
As of today, we have more than 9000 Cryptocurrencies in the world (each with its own specific usecase), although some don’t have any use-case.
BLOCKCHAIN
Most people have been hearing of this blockchain and don’t know what it means. In its simplest terms, a blockchain is a data structure that powers cryptocurrency as a whole and holds its transactional records with decentralization, security, and transparency.
Think of it as BLOCK & CHAIN
It’s a chain of records stored in the form of blocks that is controlled by no single authority. It is what fuels the crypto movement. As Mr. A is sending bitcoin to Mr. B, what makes it work is the blockchain.
It is what forms the foundation of any digital currency. Without the blockchain, it will be impossible to send any digital asset from one person to the other. It’s like the internet of Money 😉
Okay
See it in this way:
Every digital currency e.g Bitcoin serves as a medium of exchange. This means that it needs to be sent and exchanged for other assets or value. Without the blockchain, it would be impossible for you to send it out, talkless of exchanging it for value. The blockchain is what processes all the transactions. It records every bit of transaction of that digital currency
It isn’t controlled by anybody, it’s transparent meaning it enables one to check and view all its transaction.
See it as a database in computing.
Footnote: blockchain is the core of every cryptocurrency network and might be the most difficult term to understand especially if you’re not a technology freak. But don’t be afraid, you don’t necessarily need to understand its concept fully, a superficial knowledge of it is just enough (and very important).
HOW CRYPTO WORKS
Crypto serves as a medium of exchange. For you to get a coin, you need to bring something in exchange for it. For you to get ETHEREUM, you need to use another asset; Like Bitcoin, Binance Coin, or even fiat (Naira, Dollar, etc.)
So, you can’t just get it like that without you exchanging something for it. For an exchange to take place, someone else must be willing to sell to you or buy from you.
The transaction can also be tracked on the blockchain using an explorer. Each Blockchain Network has its own unique Explorer to track addresses and transactions.
So here’s the link to Bitcoin Blockchain Network Explorer where you can track every transaction taking place on any Bitcoin address. https://www.blockchain.com/explorer
Ethereum Network also has its own Explorer and also supports tokens built on Ethereum Network often referred to as ERC-20 tokens, they can all be tracked using: https://www.etherscan.io
Binance Smart Chain Network (also referred to as BSC), has its blockchain explorer, with some tokens built on it, they can all be tracked on: https://www.bscscan.com/
Solana and its ecosystem tokens can be tracked on: https://solanascan.io/
Transactions are anonymously recorded on the blockchain, so don’t expect to see the names of the sender or receiver. You will only be notified that you have received a certain coin or token from an external address.
AIRDROPS
In its simplest form, airdrops are usually free coins distributed by Crypto projects to create awareness about their project, as a way of promotion to reach out to potential investors (a nice marketing strategy to get people informed about the project).
Remember, I said there are currently over 9000 Cryptocurrencies, and new ones are being launched every day.
So, every project wants to have its community, investors, people interested in them, because without all these the project won’t succeed.
So to achieve that, they distribute a certain percentage of the Total Supply of the token for free (you have to fulfill certain requirements to qualify for certain airdrops).
The distributed tokens can later be exchanged for fiat, or another coin, or if you believe in the project, you may decide to *HODL* it longer till it meets your target price.
Everybody likes free things, especially here in Nigeria. So, it’s just a way to attract people.
PARTICIPATING IN AIRDROPS
Participating in Airdrops may require you to do some social media tasks (while some may have some slightly different requirements). So, carrying out such tasks or activities would enable you to qualify to receive the airdrop when it is distributed.
Types of Airdrop Requirements
As I earlier mentioned, there are different criteria set by various projects for the Airdrop program, each has a unique way it may decide to distribute its tokens. These requirements may include:
1. Social Media Tasks: this is the most common airdrop requirement, adopted by many projects globally because it also helps them get an increase in followers, subscribers, and members in their various social media platforms.
Social media tasks require you to; Follow the project on Twitter/Facebook, Liking and Sharing their posts (Retweets), Joining their Telegram Channels & Groups, Joining their community platform, Subscribing to their YouTube Channels, Reddit pages, Medium and LinkedIn.
For you to be able to participate in such Airdrop Programs to earn free tokens, you may need to have:
Email Address (required)
Crypto Wallet App e.g Metamask, Trustwallet, Safepal, etc. (very important, because this is where you will receive your airdrop reward)
Telegram Account (very important)
Twitter (X) Account (also important)
Zealy Account
Facebook Account
Ensure you have all these before participating in any airdrop.
The social media tasks are easy to do. Most of them may involve participating in Zealy tasks.
2. Testing an App/Site and making use of it (sometimes referred to as Beta Testing or Testnet)
Some projects may develop an app/site for their platform and decide to pay the first set of initial users of the app/site. This is also one of the ways they get people to use their products. The only thing you need to do in this case is just to use the app/site to perform some transactions using the testnet tokens and follow all the necessary instructions to be eligible for future prospective airdrop.
3. Referral Program
Most of us here must have been referred to participate in certain airdrops at one point or the other. This method is mostly used with any of the other two above methods. Some projects may ask you to refer people to also participate in the social media tasks or download and use their apps. In this case, rewards are based on the number of referrals you get, the higher the number of people you refer, the higher your rewards.
4. Making use of certain platforms. (also known as Retro-active Airdrops)
This is very similar to the Testnet mentioned above, but in this case, the project’s app/site is already live, so no need for testing, you just need to perform your transactions directly on the platform to be eligible for prospective airdrops in future. In 2020, some Crypto projects (e.g Uniswap & 1inch) decided to reward users of its platform with tokens worth over $1500. In 2021, dydx also did similarly but theirs was worth over $10,000 (This can be said to be one of the highest airdrop rewards in the history of Airdrops). The basic requirement was just to perform at least a transaction on their platforms.
5. Staking Ecosystem Tokens
Another form of retroactive airdrops are the ones you earned for Staking on a project’s platform. This is mostly common with Cosmos ecosystem (e.g Atom, Osmosis, etc.) and recently also with Solana ecosystem. To participate using this method, you’ll need to stake your Atom, Osmo, Sol tokens on their respective platforms to be eligible for prospective airdrops in future.
Kindly note that the value of the tokens you stake may determine the amount you get as rewards, so the higher you stake, the more the rewards. A minimum stake of $100 value of any of the tokens is highly recommended.
6. Trading, Deposit, or Listing Competition/Campaign
This is most common with Centralized exchanges like KuCoin, Binance, BitMax, etc. In a trading competition, traders are rewarded for meeting some trading criteria set by the exchange (criteria maybe to trade $100 worth of a particular token or trading pair). While in a Deposit or Listing Campaign, users of an exchange are required to deposit tokens of a newly listed project on that exchange. This would enable the exchange to gain some trading volumes and sufficient liquidity, which is why they reward people who deposit such tokens on their exchange.
Kindly note that not all newly listed projects carry out such campaigns.
7. Learn and Earn
In 2020, CoinMarketCap introduced a new way to reward people, by engaging them in brief learning about a particular project, thereafter they are required to answer a short quiz, the winners of such quizzes are usually rewarded with tokens. Binance & Coingecko has also adopted this method by offering Learn and Earn programs.
7. Self Drops
These kinds of airdrops are mostly associated with scams because they require you to send some negligible amount of coins in exchange for their tokens, which may sometimes end up being worthless. So you have to be very careful when participating in such.
Take good note of Airdrops. The fact that there are so many projects existing and even more coming. Airdrops are “free” in the sense that you don’t pay for them directly but not completely because you have to accomplish certain tasks to earn them.
PS: Don’t expect anything big from airdrops (however, you might be fortunate enough to earn some nice fortune from it).
Another thing to Note:
Once you have earned some tokens through an Airdrop, it doesn’t necessarily mean you can sell them immediately in some cases.
There are two things involved; it’s either the token is already listed on a Crypto Exchange (a platform where you buy or sell Crypto) OR the token isn’t listed on any exchange yet, which means it can’t be traded.
After every Airdrop task, you’ll be required to input your corresponding Wallet Address (not an exchange address) depending on the specified blockchain network, this address would serve as the account number that you receive your local funds.
HOW TO GET YOUR WALLET ADDRESS
Remember, a wallet address is a compulsory requirement when participating in Airdrops. The most recommended Wallet App is Trust Wallet because of its simplicity and also its compatibility with many blockchain networks.
Once you download the app, launch it to create your wallet address. You will need to write down your backup phrase (this is very important because it would be required to recover your account if your device gets lost or missing)
After you have successfully created your wallet, you can go ahead and click on ETHEREUM, then copy the address there (it’s usually a long string of alphanumerics starting with 0x………….)
Kindly note that your Ethereum Address also serves as your ERC-20 address, for every token built on Ethereum Network or EVM Chains like BSC, Polygon(Matic), Arbitrum, Optimism.
Recently, many projects and users have migrated to other Blockchain Networks or established their own due to the high costs of Ethereum gas fees when carrying out transactions.
So, if you’re participating in Airdrops that require a BSC address, all you have to do is copy your Binance Smart Chain Address from your Trust Wallet App (it is usually the same as your ETH address).
Another thing to note is that the Airdrop Distribution timeline varies depending on the project, some may take within 1–3 months before tokens are distributed, because they need to verify all the tasks performed by the participants, to ensure that they’re distributing to people who performed the required tasks.
HOW TO BUY AND SELL CRYPTO ON AN EXCHANGE
An exchange is a platform where you can buy and sell crypto assets. Examples include Binance, Luno, Coinbase, KuCoin, BitMax, Okex, Huobi, Poloniex, Hotbit, Uniswap, 1INCH, dydx, Idex, SushiSwap, SecretSwap, JustSwap, PancakeSwap, Raydium, QuickSwap, OpenOcean, etc.
Not all crypto Exchanges are good. We have the good ones and the shitty ones. So you need to be careful of where you send your tokens.
You will need to create an account with any of your preferred exchanges, by registering with either your email or phone number. After which a verification code is sent to confirm your email/phone number provided.
After creating your account successfully, you can begin to trade crypto but it may be limited on some exchanges.
To avoid limitations, you may need to proceed with KYC (Know Your Customer), this would require you to submit your government-issued ID, and also a face scan in some cases.
This is usually done for security purposes, so if there’s any case of fraudulent activity going on your account and it involves a huge amount of funds, then the exchange may be compelled to freeze your account and provide your details to security operatives upon request for a full investigation.
TYPES OF CRYPTO EXCHANGES
There are two types of exchanges, they include:
1. Centralized Exchanges (CEX)
2. Decentralized Exchanges (DEX)
Centralized Exchanges are exchanges where all trading and financial activities are controlled by the Exchange Platform. They may freeze your account in the case of suspicious activities or during maintenance periods. Examples of such exchanges include Binance, Luno, BitMax, KuCoin, Poloniex, Huobi, Okex, etc. Mostly any exchange that requires you to create an account and submit your details can be classified as a Centralized Exchange.
Decentralized Exchanges are exchanges where the user has full control of his transactions, you’re in charge of everything. No registration is required to use a DEX platform, you only need to connect your wallet to perform transactions. Examples of such exchanges include Uniswap, 1INCH, OpenOcean, JustSwap, QuickSwap, PancakeSwap, Raydium, etc.
Trading on a Crypto exchange requires you to have an asset you want to sell in exchange for another asset. Remember, Crypto serves as a medium of exchange.
A typical example is someone who’s selling his Ethereum in exchange for Bitcoin or any other preferred asset.
On an exchange, all transactions are placed on order books before being executed. It contains all the buy and sells orders taking place on the exchange.
Buy orders are prices set by buyers, while sell orders are set by sellers.
Buy orders can also be referred to as BIDS, while Sell orders are referred to as ASKS.
All these are features of SPOT TRADING
STORING CRYPTO ASSETS
Crypto assets such as Bitcoin, Ethereum, Ripple, etc can be stored in 3 ways.
1. Storing on Crypto Exchanges
2. Storing on Software Wallets
3. Storing on Hardware Wallets
Storing on Crypto Exchanges also referred to as Centralized wallets. One can purchase a crypto asset and leave them on Exchanges like Binance, Coinbase, KuCoin, etc.
Then sell it once it appreciates. But it isn’t advisable to leave it on an exchange as it isn’t secured.
Remember, previously I said CEXes can do and undo, they can ask you to verify your identity at any point in time.
That’s why there’s a popular saying: “Not your keys, not your coins.”
Storing on Software Wallets: Software wallets are wallets that are installed on a mobile device or PC. They’re usually decentralized, which means you’re in full control of your Crypto assets.
Examples of Software Wallets: Trust Wallet, MetaMask, Blockchain Wallet, SafePal Wallet, Atomic Wallet, Phantom, Solflare, etc.
These types of wallets make use of private keys to secure your wallet addresses (as the name implies, the key should be stored privately). The private key is a seed phrase or backup phrase to access or restore your wallet in the case of phone theft or uninstallation.
You must back up the phrase when creating your software wallet by writing it down and keeping it in a safe place.
Once you reveal or disclose your private key to someone else, they can gain access to your funds and crypto-assets.
Or if you fail to save your private keys in a safely secured place, and you lose your device, you immediately lose access to your holdings forever, the only option of recovery is your *private keys*
Private Keys are usually 12 random words, that serve as a backup phrase for users to retrieve their wallet addresses at any given time or if you want to migrate from one Wallet App to another, you can use your Private Keys.
That’s the major problem faced by people getting into Crypto without proper orientation and enlightenment.
Storing on Hardware Wallet: Hardware wallets are also known as Cold storage wallets. It is the direct opposite of hot wallet (as reflected in Crypto Exchanges — Centralized Storing).
They are physical wallets, which means they can be seen and touched with your hands. It is in form of a flash drive, which means you can transfer Crypto from your PC to the device, just by connecting to your System via the Ports/Cable, or wirelessly via Bluetooth or NFC, coupled with an internet connection, plus following the instructions specified by the manufacturer.
Examples of Hardware Wallets include Ledger Wallet, SafePal Wallet, Trezor Wallet, etc.
It is said to be the most secure form of storing Crypto. You will need to purchase any of the recommended ones if you wish to get one for yourself.
One major advantage of Hardware Wallets over Software Wallets is that they cannot be easily hacked by hackers, because it requires you to manually sign and confirm each transaction on the device itself.
My personal recommendation will be SafePal Wallet as it has options for cheaper devices and supports more blockchain networks in addition to their express shipping worldwide including Nigeria. They are also backed Binance Labs. You can purchase a SafePal hardware wallet for as low as $49.99 here.
INVESTING (BUYING & HOLDING) AKA “HODL’’
This one is pretty easy to understand and about as straightforward as it gets (though it can be really stressful and quite hard to force yourself to do at times).
A cool way to earn passively from the crypto markets, without actively trading is by investing.
By investing, it means you’ll buy a crypto asset at a low price, and you sell later at a higher price when it appreciates.
Always remember: Buy Low, Sell High
You buy bitcoin and hold it for an undetermined amount of time while waiting for the price to go up until you are ready to sell at a profit.
This is a very passive way to make money from bitcoins. It’s also currently one of the hottest strategies out there and a big reason why many people are looking for information on how to make money with bitcoin in the first place.
The term we use is called “HODL”, which means “Hold On For Dear Life”
By hodling, you’re not selling your crypto, you’re only leaving it there to appreciate, at a later time, or when you’re satisfied with the profits made.
The stories you hear of people seemingly becoming a bitcoin millionaire overnight were likely using this strategy (however the chances of that happening are becoming far less probable these days unless you have a lot of capital, to begin with).
The obvious risk here is that the price tanks and never recovers, thus leaving you with a loss.
The upside here is that the price continues to climb and you end up selling for a huge profit in the future. Now, you never know what is going to happen, so there’s always a risk with investing in anything.
Buy and hold can be a great strategy for making money long-term with Bitcoin (assuming the price continues primarily rising over time). However, a big issue with buying and holding is that, even though you are technically earning money, you can’t spend it. As soon as you cash out, you no longer own it, so you have to buy more at a higher price if you want to continue investing. But that won’t matter if you have already made a huge profit and are content with the amount.
There are some things you need to note:
i. It shouldn’t be taken as a quick source of income
ii. The investment period should be long-term; say between 6–12 months or even more.
iii. You should only invest any amount you can afford to lose.
The Return on Investment (ROI) in Crypto is limitless. It can go as high as 10000% or even more depending on how long you’re willing to hold a coin with strong fundamentals and potentials.
A case study of a Crypto Investment, which most of us have heard of is Bitcoin, the first digital currency created by Satoshi Nakamoto.
The value of Bitcoin was $0.003 in 2009, and currently, at this moment, it is now valued at $50,000 approx.
So, anyone that bought it at $0.003 that year and leave it till this moment will have over $150,000 in his wallet.
The BTC price appreciation is at an ROI of over 62192958.499% since then.
It would take you over 50 million years to earn such by saving your funds in Nigerian Bank (using 10% ROI annually for Mutual Funds, or Fixed Deposits)
The simplest way for you to buy bitcoin right now — and the way most beginners get started investing — is through services like Binance, KuCoin, Luno, coinbase.com, paxful.com, etc.
Bitcoin did it in 12 years
There are no assets in history that have ever given such ROI to their investors
So that’s why we invest in Cryptocurrencies and also encourage others to do the same.
We may not have the same ROI as high as that of Bitcoin, but we have some coins hitting 10–100x within a month, some even in a week.
2017 was a massive bull run for the Crypto markets and the same is happening this year 2021 (following history).
ALTCOINS OR INVEST INTO ICO’S
Another great way to make money trading bitcoins is to buy altcoins or invest in ICO’s that seem to have a promising future. Then, once the coin takes off (assuming it does) you sell them for Bitcoin at a profit.
This can be a great strategy on how to make money with cryptocurrency in general. However, once again, I do caution this if you don’t have much experience in the digital currency world overall, or at least have a good mentor to get advice from on which coins to buy, and even then it’s risky.
I will explain some factors to consider in the selection of Crypto assets to invest in and HODL.
Currently, there are over 9000 Cryptocurrencies in the world.
But the majority are trash (a.k.a Shitcoins) and only a few are good to invest in (mostly referred to as Solid Alts).
Some factors need to be considered in the selection of Crypto assets to invest in.
Factors to consider in the choice of investment in cryptocurrencies
You can’t just go ahead and buy some shitcoins and go to sleep expecting them to make you a millionaire overnight. There are some things you need to consider first before buying any Crypto asset, these factors include:
- Tokenomics: This has to do with the use case of a cryptocurrency (knowing what value the project is offering). Before investing in any Crypto assets, you should ask yourself these questions; Does it have a use case or not? Does it have a demand? What’s its purpose? What value is it offering?
The use case of a Crypto project plays a vital role in the determination of its value or price.
Bitcoin for example; was created as an alternative, decentralized, and digital system of sending funds that work independently and eliminate the middlemen, government, and the banks.
That was the purpose, and up till this moment, it still serves the same purpose.
Some payment platforms accept Bitcoin as a means of payment, even some online stores too.
Bitcoin as a Crypto has good tokenomics, probably one of the best among the rest.
2. Total Supply: This has to do with the total number of tokens created at the initial launch of a Crypto Project. It is known that a coin with less supply will likely have a higher value and price than one with much supply.
Bitcoin has a fixed supply of 21 Million (which implies that there are only 21 million bitcoins in the whole world) and it is meant to serve a population of over 7 Billion humans that currently exist on earth.
You can see it is far lesser than the targeted demographics, which means it is limited and scarce.
Some projects have over 10 billion Total Supply of their tokens, they usually have little or no value because of this, which is why some may decide to buy back & burn some tokens to reduce their total supply.
Then, there are also some projects without a fixed total supply, which implies that new tokens can be minted at some point (this is usually risky for investors, because the developer may decide to dump the newly created tokens on its investors).
So, in selecting an asset to invest in, we should consider the total supply. The higher the supply, the lower the value and vice versa.
3. Market Capitalization: This can be referred to as the total dollar market value of an asset. It is commonly referred to as “Market Cap”, it can be easily calculated by multiplying the circulating supply of an asset by the current market price of the asset.
When searching for an asset to invest in, it is better to go for projects with low market caps than the ones with already high market caps.
The reason is that low market cap assets have the potentials of performing better than assets with a large market cap (For instance, if you notice the price movement of BTC and compare it with altcoins with low market caps, you would notice that while BTC might have a gain of 10%, some altcoins can achieve over 100% in a single day).
4. Partnerships: This is a crucial factor to consider in the selection of Crypto assets. It forms the basis for *Fundamental Analysis*.
Things to look out for;
Does the project have good partnerships? Who are they working with? Names of their partners. Is there any deal/offer from their partner that will further drive its adoption?
Good partnerships would have an impact on the project’s popularity and drive further adoption which would reflect on the price movement of the asset.
5. Team behind the Project: when a project has a good team backing the project, it is bound to succeed, so it is sometimes necessary to know the individuals that consist of the team of a particular project.
Are the members of the team known? Where have they worked previously? (Previous work experience), Do they have any influence in the Crypto Community? Have any of them been ever involved in any fraudulent activity?
A project with a good and well-known team would likely succeed compared to those which can’t be verified.
A typical example is Binance and its team, led by Chanpeng Zhao (aka CZ) CEO of Binance.
He has made a name for himself in the Crypto Industry, there’s hardly anyone who’s into Crypto that doesn’t know of Binance. He’s a popular entity in the Crypto space and also works hard to further drive the adoption of Binance and its entire ecosystem.
His hard work with the entire Binance team positively influenced the price of Binance Coin greatly which has seen a massive increase since it was launched in 2017 at about $0.05 and is currently worth about $450 with an ROI of over 598036.4%
While there are some projects without good or well-known team members which makes it very for exit scams.
You must put all these factors into consideration when investing.
Some of us here are newbies and may not have the “iron hands to *HODL* a coin during a market crash.
A notable case was the great blood bath on March 12th, 2020, which had a great impact on the entire Crypto market as a whole, most investors were forced to panic sell their assets, while some had to watch their portfolio go below -80% in some cases, some had to even delete Crypto-related apps on their devices to preserve their mental health.
Bitcoin whales sold off massively, and Bitcoin witnessed ” one of the greatest price crashes in history in a single day.”
I also watched my portfolio go down, Bitcoin dropped from around $9,000 to a range of $4,000
So, in a situation like that, many may not have the courage to HODL through the bear season, then you may have to *DCA* your investment.
DCA means Dollar Cost Averaging
This means during a dip, you make small consistent market buys. You either buy daily, weekly, or monthly depending on your financial capability, without minding the price fluctuations, just keep buying periodically.
Two assets are still retaining their stand at the top, that is Bitcoin and Ethereum.
Kindly note that most of the knowledge you’ll gain in crypto will be mostly self-acquired, based on exploration, practice, and experience (both the good and the bad ones). The lessons will just be to guide you through the basics and noteworthy principles.
Remember to always DYOR (Do Your Own Research)
If you’re interested in trading cryptocurrencies, then you can sign up on Binance here: https://accounts.binance.com/en/register?ref=38515884
For more info and videos about learning crypto, you can visit Binance Academy here:
Thanks for reading.