These last few days have received more and more requests concerning Crypto investment opportunities and If I could give some advice which coin or token should be bought. My first answer to this question is : I am not a Financial Advisor and please do your own research, famous disclaimer used by YouTube influencers. I am just a Sales guy passionate about the technology behind crypto and I hope you also will be passionate.
Having said that, I can share my point of view and my lessons learned from this market. I have survived the flash crash of March 2020 and I am a convinced Hodler!
I have learned from my mistakes and from each pull back, which are quite severe on this market (30%- 40% is quite usual).
Here are the points, as newcomers, that you need to pay attention
- 1.The market does not want you to win. And he will play with your feelings until you sell low to make you buy high. Make a plan and stick to it, then you will avoid acting under panic
- Only invest what you can afford to lose.
- Ask yourself this important question ? Are you here for the long term or the quick win? These are 2 different strategies, but in both cases never ever put all your investment at once.
- Do not FOMO too fast, what goes up fast will fall fast 😊. FOMO = Fear of Missing Out. It means better to position on retracement or consolidation zone rather than on the top of the price. For example, a much better entry given by the market On April 18th of April 20th compared the previous days ago. You get a nice discount on all coins. When the market fears then you normally have the best entry point in the bull run.
- Do not short a bull market
- If you are not an experienced trader do not start leverage trading , too risky, especially when the principles of risk management are not followed.
- Be ready for a dip of more than 20%-30%. It does not mean that the Bull run is over, it does not change the positive momentum. The market needs to breathe after each significant increase. Not everyone can win , otherwise it would be a Ponzi scheme. The price actions will play with your “brain” and your patience. It will make sure that you sell low and buy again high.Next time, think about it before triggering the sale button. One more time, the best configuration to buy is when the fear is spreaded around the market. When investors start becoming too greedy, this is the time to take some profit. You can check the fear and greed indicator here : https://scalpexindex.com/app/
- Be ready for the bear market. We currently are in a bull run which could maybe last until the end of the year, maybe more , maybe less. We do not really know. You might expect x 2-x 3-x4 on some risky assets, but this period will end at one point and you will see the value dropping for some of the coin until 90%. To think that it won’t happen is to me a mistake. BTC and ETH and the big market cap might not drop that much , but they will drop. But before this bear market I think that we should see very nice price actions before.
- Fundamentals are very important for long term investment.
While you invest, please try to get interested in the fundamentals behind the projects you invest in, this is just mind-blowing and helps you to understand what crypto is about. It is about giving back the power to individuals based on the principle of decentralization. You have the power to be your own bank and much more.
- Follow the price in USD and not in EUR. The price action is done based on USD and not EUR.
- The more you go deep in the market cap , higher is the risk but higher is the reward potential. You can check all important information on crypto and the market cap by checking this portal: https://www.coingecko.com/
- Always compare tokens and coins based on the tokenomics. Number of coins issued etc.. The market cap is the real value of the project, not the price of a coin. Too many people are making this mistake and it leads to making wrong decisions. Buying DOGE is for example a very bad idea ( my only real advice to you , do not invest in DOGE, it only can fail).The number of coins will increase , this is a meme there is nothing behind the project. The growth cannot sustain. When people get bored of it , it will fall like a stone.
To conclude, I would like to share my humble view on the market and this is not advice to buy but my opinion that I would like to share with you.
-ETH (Ethereum) might over perform BTC (Bitcoin), and we see this continuous trend since March.
The fundamentals of ETH are extremely strong. DeFI , NFT etc… are based on ETH. A lot of tokens are based on ETH and almost all stable coins are based on ETH.
ETH struggle a lot right now due to the scalability issue nevertheless for a short and long term , this is a must have in the portfolio. Once the scalability issues are fixed, then it might explode. Some serious analysts are pretending that ETH is following the same pattern as BTC in 2017 , which could lead us to 20 K USD, I am of course very careful with such predictions , but who knows ?
I also invite you to inform you about the London release of July , which led ETH to become in some cases deflationist.
– For the rest Crypto has its own verticals: Smart Contract , DeFi,Privacy coins, NFTs., Oracle.
Smart contract : ETH, ADA;DOT,SOL,XTZ,BNB
Please check the project and eco-system for each smart contract and make your own mind.
You will see some strange things like ADA which has no working product yet is better evaluated than Solana (SOL) or Tezos (XTZ) . You need to make your mind on such things.
BNB is quite explosive these last weeks, but keep in mind that is a very centralized Blockchain and could be shut-off easily
Privacy Coins : XMR,DASH,XVG,
The privacy coins allow you to transac anonymously. Our government hates them all and wants to regulate, but are they going to be able to regulate them ?
NFT : very hot topic but too large to discuss it right now. But it is here to stay. This is revolutionizing the market of arts, sport and collectables. Very exciting time.
DeFi (Decentralized Finance) is to me the most exciting aspect of Crypto, very large Area as well and mainly built on Ethereum. It will give the possibility to be more and more independent from the traditional financial system = BE YOUR OWN BANK.
By the way, without risking your money, you can realize 8-12 % on yearly basis by stacking stablecoins on such projects :
www.youhodler.com -> 12%/Year on EURS paid on weekly basis
Some of these project , also allow you to trade synthetic value of your prefered shares without having any central entity like : Serum(SRM) or Synthetix (SNX)
DeFi allows you to earn money on Yield farming and liquidity pooling, but I would qualify these new types of investment as “Advanced ” and I would not recommend them for beginner.
Other Interesting projects are : 1INCH,UNI,AAVE,CAKE,CRV etc…
ORACLE are linked to DeFI a lot , as they provide them the information from the outside world to trigger the conditions of a smart contract
REP,LINK and API 3
Investing in Crypto , this is also investing a lot of time in informing yourself and developing your own strategy.
For the beginner, I would advise you to start with the basics, and understand what the Blockchain is about ?
I also would advise you to check this youtube channel , very good content for beginner and as well as for advanced crypto fans:
Be Careful with all moon boys (especially from the US) on the web, they also like promoting small market cap coins and they make the money , not you.
In case you want to custody your coins yourself , It might require further coaching , but for now you might have enough to do by processing all this information.
Do not hesitate to ping me if you need information.