How to Start Investing in Bitcoin-Currencies 2022
I have explained about Investing in Bitcoin-currencies in 2022 in my earlier article and their I have explained should you be investing in Bitcoin-currencies and If you have decided that you will start investing in Bitcoin then what is the best time to start.
So, Hello everyone and welcome to today’s article. In today’s article, I am going to talk about How to Start Investing in Bitcoin-currencies.
How to Start Investing in Bitcoin currencies,
Are the Crypto Exchanges Safe?
Now you ask me well, there have been a lot of attacks on bitcoin that bitcoin get stolen from exchanges. it’s an issue of exchange not bitcoin’s issue. bitcoin as a network has never been hacked. bitcoin network or Not a problem with the Ethereum network. so to say exchanges can get hacked and I will talk about it later in the article too but the bottom line is that bitcoin has stood the test of time. when it is evolutionary have gone through phases and found their product-market fit. so this is a term many of these startup enthusiasts would agree with. When startups start they say they struggle. they burn a lot of money but they eventually find their product-market fit in a classic case. Amazon is that. For a considerable period of time Amazon made no return to shareholders. but once it found its product-market fit to say so, it became profitable.
How to Start Investing in Bitcoin-Currencies 2022
New Industries are Adopting Cryptocurrencies
Now the third and last least good cryptocurrency that, some new industries are coming. so let me very briefly talk about two major industries. the one is the NFT economy. so NFT means non-fungible token. now I will not go into details about NFT again but NFT makers are strengthening the economy. so you will see celebrities like Amitabh Bachchan, and Salman Khan launching their own NFTs and investing in NFT-based startups. what is not right because they are seeing a lot of prominences here. the bottom line is that the maker economy is being driven by this whole NFT game. NFT is one of the segments within the cryptocurrency space that is gaining a lot of prominence and becoming more and more prominent. Maybe I’ll have a separate discussion on NFTs altogether but to make the whole story short this NFT debate didn’t start until cryptocurrencies were there. Going forward NFT will find its own market. Everyone in the U.S. would be critical and even if one percent of investors on earth believed in this NFT economy it would skyrocket. therefore cryptocurrencies would be a tad more relevant to it. As per my understanding, the industry would be d5 or decentralized finance industry.
Now technically speaking even big banks like JP Morgan, you must have heard Jamie Diamond’s comment that crypto is that initially? he said you now have JP Morgan itself on the metaverse. they are aggressively investing in the d5 space and preparing for the war that will be 10 years ahead in the future. so the bottom line is that the nfts industry like d5 is gaining a lot of prominences. so if you unfortunately or good luck Cryptocurrency is the only place if I want to take advantage of it.
How You Should Buy and Sell Cryptocurrencies?
If you are interested, let me address a very quick concern. People number one says that cryptocurrencies have no inherent business fundamentals which is wrong. Because it’s like me saying ola and uber are not making anything. they are not making t-shirts, they are not making widgets, they are not making cars. what they are really doing they are convenience apps that Binding buyers to sellers. Oyo, Ola, Zomato does the same and so does a bunch of other various different businesses. so these are the applications that improve convenience likewise most of the things that are built on technology. They are not going to produce tangible goods, but they are making systems that are creating more convenience.
For example right now when I want to transfer money to my friend which is in another country, I have to pay around 5% commission on every transaction that I am doing. if I am paying let’s say one hundred dollars then, five percent commission I will lose paying to HDFC bank and a US bank. If I say JP Morgan is a crypto-based system, I can easily transfer even 10,000 USDT on a commission of one dollar. literally a commission of one dollar. so this is a real use case for me. so many thousand such use cases are being developed in the crypto world. so we can’t just be saying that there is no inherent value. I would urge you to please google and search for various uses Study “How Blockchain Technology Powered By Cryptocurrencies Is Changing The World Around You”. In Case Of This Technology But Yes 99 Cryptocurrencies Are Full And No Need To Start. But The Good People Who Will Survive, Will Be The Market Leaders and they will add a lot to the world.
Best Platform to Invest in Cryptocurrencies
Now you can ask me well, great cryptocurrencies are standing at a very important critical junction, the rules are becoming more and more favorable by the day, so I want to explore the space at least. so let me know where to start buying my cryptocurrencies? what exchange should i use? and how should i go about it? so you can go and choose any exchange.
I personally use vauld. I find it very useful And to be more helpful. I will tell you the reason why, but broadly you have two options in terms of exchanges. for example, in India, we have NSE BSE, so there is a similar exchange in the crypto domain through which You have to go through. for example one app it could be finance, it could be zero x, it could be vauld, it could be a bunch of other exchanges through which you can go and buy cryptocurrencies.
Now mainly two Types of Exchanges Exist in an Exchange. eg There is a banking facility for the vault. You can go to the vault and make a fixed deposit on your cryptocurrency. so let’s say you buy bitcoins on the vault and you can make a fixed deposit on the wall. here’s how you can make a fixed deposit on the wall. this will give you a 6.7% return on fixed deposits on bitcoin. likewise, if you buy other cryptocurrencies for example if you are buying USDT or if you are buying MAT if ic so rates can go up to twelve decimal six-eight percent. so it is a fixed deposit and many times people comment that accepts how the world is giving me 12.68 percent. it’s like cheating people or something the answer is. No, it is not. to deceive people and actually in the d5 world that concept is called produce farming. so yield farming simply means the money you give for world war. please read about upaj farming and on yield farming, you can earn up to 108% return also.
Why I am highlighting this? when vault gives you this 12.68% commission, it is taking your money and putting it in the liquidity pool. now it is a complicated exercise how to open a staking node and cultivate the yield on it. retail investors should not go there. but assuming someone is giving 12.68%, it is a scam. it is like saying that hedge funds in the current world they give very high returns 25%-35% even Up to 50% returns year over year. so by that logic even all hedge funds are scams. so it doesn’t make sense to need to understand that whatever organization you are giving money to Simple understanding of how these banks are using the money on the back end. on the flip side are some of the exchanges featured on the exchange. Simply you are allowed to buy and sell cryptocurrencies.
Also read
So if your objective is only to move cryptocurrencies around then let’s say if you buy a bitcoin on a certain exchange and your objective is to transfer it to your wallet. you probably need This banking facility is not required as you will not be able to make fixed deposits on these exchanges. so which exchange to choose if you want to keep your money on the exchange is your call. Wallet and make a fixed deposit then something like the world works very well if you don’t want to take advantage of the facilities like fixed deposit then you can go to another exchange. it is not a problem.