What You Need To Do To Succeed In Crypto Markets

Cryptocurrencies have come a long way in a short span to become a trillion-dollar market. Part of the growth has to do with the continued acceptance of the new form of payment and investment among retail and institutional investors. Despite increased interest in this new market, it is still relatively small compared to other established markets, and there are lots of opportunities for “early investors.” This piece offers a few pointers one needs to succeed within crypto markets.

The first thing is investing some time to study and understand the industry. Most people become aware of Bitcoin and cryptocurrencies when they see reports of the enormous returns these tokens can master. And due to greed and fear of missing out, they end up jumping to the market without proper education, which ends up as a disaster. Many have lost billions of dollars through scams that target naïve investors through fake projects or investment schemes, offering an easy way to make money with crypto. It is vital you invest some time at the start to understand what cryptocurrencies and blockchain the technology behind these assets is before making any investment. There are plenty of free resources online for this purpose, and all that is needed is creating some time. 

Determine How To Engage With The Market


Once you have a basic understanding of the technology and the tokens, it’s time to determine how to engage with the market. The two most common methods include trading and investing. Trading involves buying and selling tokens for a profit after some time. This can be done in spot markets where you buy the actual asset, wait for the price to rise before selling it, or through derivatives protocols. The good thing with the latter is your benefit when margin trading cryptocurrency since you can lengthen or shorten the market. Also, you don’t have to own the actual asset and stress over safely storing it and things like that. All you need is an account with a reputable platform such as PrimeXBT that offers CFD trading for the cryptocurrency you are interested in, then fund it with the minimum required amount, which can range from $100 to $250, and you are good to go. 

Trading presents one of the easiest ways to get into crypto with a small amount of capital and grow it to a level you can afford to put huge sums in projects you believe in. Great brokers like PrimeXBT will provide plenty of educational resources that one can use to learn how to trade derivatives successfully. Also, there is a demo account where you can practice using “virtual money” provided by the platform to test out your strategies and perfect your trading skills. 

Investing Takes Time


Investing involves buying a digital asset and holding it for an extended period. Most genuine crypto projects have seen unprecedented growth over the years as their utility and interest among investors has grown. Take the example of Bitcoin, which has seen an ROI of over 74000% since its all-time low in July 2013, or Ethereum, with an ROI of over 951,000% since its all-time low in October 2015. These are returns you will struggle to see outside crypto markets. Therefore if you got involved with these projects early and still hold your coins, you must be sitting on a decent bag of money. Incredibly it is not yet late to get involved as these projects are still growing, and even people that join the crypto market now are still considered early investors. 

Bitcoin or Ethereum might be too expensive for you now, but you can buy fractions and grow your portfolio over time. Also, you can opt for cheaper projects with potential—the likes of Cardano, Polygon, Decentraland, and so on. 

If you opt to be an investor, you will have to learn to carry out due diligence to avoid putting money in scam projects. Here you will want to determine the utility the project offers, who is behind it, and what experts within the industry think of the project. Also, since these are decentralized assets, you only own them if you hold private keys. Therefore it does help to invest in a hardware wallet to store your keys safely for long periods.