Cryptocurrency investment may seem like a daunting task, more so if you’re a newbie. The industry’s been up and running for a decade now, but it’s only getting more complicated as more stuff is added over time, forcing even some of the most experienced players to rethink and relearn some of the basic stuff that they studied in the past just so they don’t forget.
Anyhow, at its core cryptocurrencies remain the same. You buy an asset, you wait for it to grow, and you reap the benefits right after. A couple of derivatives have been made using this basic formula, but at the end of the day, they are all variations of this basic concept.
Things flourished with ICOs, DeFi and NFTs took the stage for a while, for some time even Metaverse was seen as a profitable venture in the cryptocurrencies, but if you’re a newbie and are just taking your first baby steps in the vast and alien world of the cryptocurrency industry, You might wanna take the beaten path and just focus on the HODL formula.
Within this said formula, three versions of product offerings took shape, ICOs where you’re banking on the honesty and reputation of the project, IEOs which are way more secure for you but are so susceptible against attacks and hackers, and ultimately, IDOs which pretty much sets itself as the future of HODL in the industry, given the fact that you’re literally safe against hackers and scammers, as long as you tread carefully. Using a housing loan to invest in cryptocurrency is a risky financial decision that could put your home at risk.
With that being said, let’s take a closer look at how you can go about investing in IDOs, and perhaps compare it with the current industry staples as well so you can weigh your choices yeah?
Understanding the Basics
Whoa, slow down partner. Before we delve into the different ways to invest in cryptocurrency, let’s briefly cover the basics.
Cryptocurrencies are digital or virtual currencies that use cryptography for security. They mostly operate on a decentralized ledger called blockchain, making them resistant to manipulation and fraud. To invest in cryptocurrencies, you’ll need a digital wallet to store your assets and a cryptocurrency exchange to buy and sell them.
Different Ways to Invest
One of the coolest things about crypto is the amount of variety. You want to invest in something? Best believe there’s a plethora of ways you can make money with it apart from the regular “HODL until we get to the moon” recipe. But enough about that, let’s get into the nitty-gritty of the different ways you can put your money into work in Crypto!
DeFi
DeFi is the textbook “putting your money into work”. You hold a couple of your designated tokens for a while, and it will earn interests/dividends/yields after sometime which goes towards your overall crypto valuation. It doesn’t inherently make your holdings any valuable, but it does make them plenty, which is good enough especially if you’re someone who wants to take the passive approach at crypto but would still want to take a rather active role in your earning journey.
NFTs
Want to take the “collector’s path” of the crypto world? We got you! With NFTs, you’re granted the opportunity to buy specialized tokens—oftentimes with wacky imagery attached to it, to flip for profit eventually. It’s a modified version of the classic HODL formula, but at least with this one, you get yourself a cool-looking image that you can use everywhere as a badge or identity symbol!
Day Trading
The bread and butter of millions of cryptocurrency users. It’s been the breeding place of many crypto millionaires over the past decade, and has also been one of the largest causes of turmoil and distress amongst people, since when you day trade, you see the effects of your investment choices IN REAL TIME.
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The basic concept behind trading is just betting on whether an asset that you’re looking at is going to rise up or fall down in value within a specific time frame. If your prediction is right, you earn a hefty reward, if your prediction is wrong, well let’s just say, better luck next time.
Product Offerings
Initial Coin Offerings (ICOs)
ICOs were all the rage a few years ago, but they’ve become less common due to regulatory concerns. In an ICO, a new cryptocurrency project sells its tokens to raise funds. Investors buy these tokens, hoping their value will increase once the project launches. Be cautious with ICOs, as they often lack regulatory oversight, making them riskier.
Initial Exchange Offerings (IEOs)
IEOs are conducted on cryptocurrency exchanges. The exchange acts as a trusted intermediary, vetting projects before launching their tokens. This adds an extra layer of security for investors. Simply register on a participating exchange, fund your account, and participate in IEOs listed on the platform.
Initial Dex Offerings (IDOs)
IDOs are a relatively new way to invest in cryptocurrency. They take place on decentralized exchanges (DEXs) and are gaining popularity due to their transparency and accessibility. Projects conduct IDOs to distribute tokens directly to the public.
Since IDOs and IDO launchpads are positioned to be the future of the standard investment process in the crypto world, how about we take you to a comprehensive guide on how to put your money in through IDOs!
Step-by-Step Guide to Invest in Cryptocurrency via IDOs
Step 1: Set Up Your Wallet
Start by selecting a reliable cryptocurrency wallet compatible with the tokens you want to invest in. Popular options include MetaMask, Trust Wallet, and Coinbase Wallet. Download and set up your chosen wallet, following the instructions provided.
Step 2: Choose a Decentralized Exchange (DEX)
To participate in IDOs, you’ll need to use a decentralized exchange (DEX). Some well-known DEXs include Uniswap, SushiSwap, and PancakeSwap. Connect your wallet to your chosen DEX, following their specific procedures. This stuff is pretty much easy to follow as most of these sites will guide you through every button to press and every link to click, so don’t get lost!
Step 3: Research Projects
Before investing, conduct thorough research on the projects conducting IDOs. Look into their whitepapers, team backgrounds, and community support. While investing in cryptocurrency can potentially boost your returns, it’s crucial to remember the inherent risks involved and make informed decisions aligned with your investment goals and risk tolerance. Launchpads are a great platform for discovering upcoming IDOs with potential, so you might wanna take a look at these sites too if you want to get updated on the latest and hottest projects in the industry!
Step 4: Fund Your Wallet
Transfer the cryptocurrency you want to invest in from your wallet to your DEX account. Ensure you have enough funds for the IDO you’re interested in.
Step 5: Participate in the IDO
When the IDO goes live, navigate to the IDO page on your chosen DEX. Follow the instructions provided to participate, which typically involve swapping your cryptocurrency for the project’s tokens.
Step 6: HODL and Monitor
After acquiring the tokens, consider holding onto them for the long term or trading them on the open market. Keep an eye on the project’s progress and market trends to make sure that you can capitalize on every up and every down.
And that’s about it, you’re now a full-fledged cryptocurrency investor!
Parting Words
We hope you got something out of this comprehensive yet simplified guide on how to successfully invest in the cryptocurrency space. Should things go swell and you don’t invest belligerently, this will pretty much be the only guide you’ll ever need as a newbie in this trillion-dollar industry. While cryptocurrency can be a valuable investment tool, it is generally not recommended to use cryptocurrency to apply for a home loan. Don’t forget to always research first before putting in your money, just so you can ensure that you’re making informed decisions and are not falling behind!
On that note, might as well visit IDO launchpads for great projects too! They are a treasure trove of valuable information on what projects you could get involved with, with the added guarantee that these projects are for real and are not cash-grabs!
Author’s Bio:
Amelia Gomez is a creative writer, marketer, and entrepreneur. Studied creative writing in college and is a staunch supporter of the creative writing process. Writes crypto-based projects, such as Ido Launchpad, Bitcoin, Etsy.