Crypto can have its ups and downs, however, it remains the market with the highest potential returns on investment. Moreover, it is especially profitable to invest during a downtrend, since even the most promising assets’ prices are lower. However, it is very important to carefully pick projects and assets to invest in, since the market is more ruthless and unforgiving than ever. So let’s talk about how to approach your crypto investments wisely.
Why is crypto profitable?
First of all, you should understand why cryptocurrencies, DeFi and blockchain are so attractive in the first place. After all, projects that play into crypto’s basic strengths have much more chances of success.
- Decentralization. In crypto, users manage their funds themselves – there is no single decision making center that can play dirty or screw up. At least in theory – there are some centralized projects in the crypto market, but most of them don’t last long.
- Lack of borders. Cryptocurrencies don’t care about national borders and distances – it is just as easy to transfer some Bitcoins from a user in Seattle to a user in London, as it is to transfer them between people in one town.
- Fast and cheap transactions. In the crypto space transactions are much cheaper than in traditional finances, especially when we are talking about large amounts, since the network fees do not depend on the amount transferred.
- Privacy. While in most blockchains transactions are traceable, they are not directly tied to individuals, plus there are some truly anonymous blockchains. In addition, users’ data in crypto is protected by top-of-the-line encryption.
- Security. Due to decentralization )lack of a single failure point) and end-to-end encryption crypto products offer much higher level of security than traditional financial products.
- Ease of integration of other digital technologies. It is much easier to gamify DeFi as well as to combine cryptocurrencies with other practical applications of blockchain technologies.
All right, it is quite clear what strengths a promising crypto project should play into, but what specific properties are worth looking for when you conduct further analysis?
Applicability. Projects and assets that have clear real-world use tend to perform the best, since they have an inherent value behind them.
Stable growth. For crypto assets, it is important that they show stable growth – without rapid surges in either direction. Stable growth means stable interest in the asset form due to its actual market advantages, not market manipulations.
Clear source of growth and revenue. For projects, it is crucial that it is clear where the money comes into the project and why people should bother with it at all. If this question is hand waived, you are looking at a scam in the vast majority of cases.
High liquidity. There is no point in getting an asset, be it an already established one or a newcomer to the market, that nobody is interested in. You should be able to sell the asset at any time at market price without issues.
How to get the maximum from your crypto assets
It is important to sell your crypto assets for fiat without losses or, better still, with a profit. After all, you’re in it for the money, aren’t you?
Fortunately, there are ways to sell Bitcoin for USD noticeably higher than the market average rate. For example, Tirlu is one of the best platforms for selling Bitcoin and Litecoin on the Web.
The platform only has two exchange directions: you can sell either BTC or LTC for PayPal USD. But due to a vast network of market makers and narrow specialization, it can offer its users the best deals available on the market at any given moment – typically, Tirlu offers the rate 5-10% more than the market average. And it works fast: money is sent your way after the first confirmation in the blockchain network.
It won;t be a sound strategy to pass on such a boost to your return on investment!