When you are about to start your investment journey the first advise you get is, try not lose your money. But no one goes into investment hoping they would lose their money. While trying to invest without losing your money, they are things you have to do to avoid losing a lot of your money. One thing is to read and learn, you are about to earn, it’s right to learn what you are trying to earn from. It can be shocking to hear people who have been investing in crypto for more than 2 years not know simple things like StableCoin. This is because they limit theirselves to the buying and selling of coins without putting effort to learn most of the basic things of crypto.
I used to be one of those guys who just buy and sell crypto without proper in depth knowledge of what crypto is, till I found leofinance and decided to expand my crypto knowledge. The crypto technological space is constantly evolving, new things and new ways to earn money are constantly getting created everyday. 7 years ago, no one knew about DeFi, today DeFi is one of the most invested sector on crypto. We have the play to earn sector and the move to earn sector making a lot of money for some people. Few days ago I heard about the introduction of the Watch-2-Earn sector. This will allow viewers earn from watching videos of content creators. So staying up to date with crypto news is one way to put you on the right path and avoid losing money.
Consider Investing In StableCoins
Although investor’s confidence has been on the shaky side recently after the LUNA/UST fiasco but StableCoins are one of the greatest crypto assets to possess in the crypto space. Especially investing on StableCoins with yields, for instance HBD. It’s not advisable to always choose high yields over security. Go for StableCoins with yields and better security that gives you better assurance of your investment. What use is your money when the yields are higher but you can lose your investment due to lack of security.
StableCoins are supposed to be low risk because the volatility is expected to be extremely low. Before a StableCoin can give you 1% gain or loss, the volatility of the crypto market is expected to be really high. So if you are an investor that is trying not to lose money then invest on StableCoins. This way you are rest assured of your investment, but then, you have to be careful of where you are investing on to avoid investing in a volatile StableCoin. For now I trust HBD and BUSD as the only StableCoins to leave my money in. This is not a financial advise, this is just my opinion and don’t invest based on this.
Diversification Is Good But Not Too Much
You know what they say about too many cooks, they spoil the food. Diversifying your money or investment is a way to stay safe, like not putting all your eggs in one basket, so you don’t lose all your eggs when you lose the basket. But what happens when you put all your eggs in too many basket more than you can track or keep up with. You don’t want to leave your eggs in basket that you end up forgetting and not take profit. Putting your eggs in so many basket is like exposing your eggs to so many risks. Imagine having your investment in 30 different coins, let’s say out of that 30, only 10 coins are worth investing in, your investments in those other 20 are in trouble. You don’t have to invest on every coin you come in contact with, be sure of where and what you are investing in.
In crypto it’s better to go for security and quality over unnecessary quantity and chasing unrealistic gains. Don’t always be in a haste to make money so you don’t invest on the wrong project and lose your money.
Consider Staking Options
Staking option is one of the best option to use if you want to invest for long term and want to make extra yield while waiting. We have people that have been hodling crypto for years, especially Bitcoin, imagine how much yields they would have generated if they staked it. Choosing a Defi platform with better security and yield is something to consider before investing to avoid losing your money.
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