In the crypto market, there are also early rounds of financing for a limited number of funds and investors who end up making the biggest profits. But in the process, mere mortals also have the opportunity to get on the whitelist and buy some coins before they become available to all. In addition, there are airdrops and bonuses for participating in marketing activities, like “get all your friends to fill out a form with their personal details and repost about the project on all social networks.”
Passive Income in Cryptocurrency
Free coins are tough to get due to the huge amount of people, so it makes sense to focus on whitelists and try to purchase coins before they appear on the market. To do that, you need to buy tokens from the launchpads and exchanges, which open up access to trades. Right now, they are trading at a significant discount from their peak values.
The most important thing in the crypto market is to become the earliest investor possible and sell the coins when they hit the market, and everyone else is able to get their hands on them. That’s what big players do, and that’s what anyone who wants to make money from cryptocurrencies should do. All this talk of a magnificent decentralized future should be left to the marketers, whose task it is to create enough demand to get the big players to close positions.
Market Makers: Who, What, and Why?
Coinmarketcap’s “Historical Snapshots” section allows you to check out the top rankings, for instance, at the end of 2017, and then see what’s happening with the leaders of that period now. Spoiler alert: there’s nothing good. The exceptions are single projects with the biggest funds behind them, while everyone else can disappear at any moment like Terra did the other day.
Hence, the next rule follows: we should take the most reliable projects from the market and only after a significant correction from the peak values. The concept of diversification in the crypto market is completely absent. It makes sense to choose the top 5-10 projects (focusing on infrastructure projects) with large funds under their belt and gradually accumulate them during a market decline. And it’s worth using only money you don’t mind losing. When the next bear market comes along, you should get rid of the coins without any regrets.
Don’t count on easy money, engaging in active speculation, because trading is a separate type of professional activity. Only the most optimistic people can hope to master it in a couple of weeks and do it while sitting behind a MacBook in exotic countries. There are a large number of professionals in the cryptocurrency market right now making money from everyone else’s mistakes. This can be seen even by the fact that coin dynamics have become much smoother compared to even a few years ago. You can’t outplay the big players in their field. Neither is it a good idea to build investment strategies based on the advice of popular bloggers.
What Is Better: Cryptocurrency Trading Vs. HODL
It’s worthwhile analyzing the technology “under the hood” of a project only if you have a strong desire and consider it an additional activity. Everything depends only on PR campaigns and fund curation in the cryptocurrency market. It’s enough to look at a completely helpless Cardano project and its place in the capitalization ranking to put anyone off from carrying out a deep analysis of each project.
Disclaimer: The information expressed is the author’s personal opinion and does not necessarily reflect the opinion of the CoinsPaid Media editorial team. Its content should not be construed as investment advice or recommendations for actions. This material is for informational purposes only!
