In the grand scheme of things, cryptocurrencies are still an exciting and brand-new investment opportunity. There is still plenty of room for crypto to grow and much potential to celebrate.
However, there is some degree of uncertainty for veterans and newcomers of the trade alike. Of course, new moneymaking opportunities may give you cause to be nervous at the best of times. In cryptocurrency, you may feel some trepidation due to the volatile nature of the digital currency and how unpredictable crypto can sometimes be.
Still, there is much to be gained here if you adopt the correct mindset. Crypto may occasionally be on shaky ground, but that does not mean you should wholly doubt it or yourself. It has seen unprecedented levels of success, and to be part of that trajectory in the future could be highly rewarding. There are plenty of reasons to feel good about a myriad of prospective investments here.
If you need some additional assurances, the pointers below can hopefully instill you with confidence in crypto.
Communicate Your Intentions
When you spot any potentially life-changing opportunity, it can be easy to have an outlook akin to tunnel vision. You may perceive this as your time to shine, with few reasons to hold back.
However, investing in cryptocurrency is a big decision that will require some negotiation between you and your loved ones. If they are unfamiliar with digital currency, they may understandably have some reservations themselves. Will it affect your savings? How much of your time will be taken up with your investments? Is there potential for things to go wrong?
The choices you make here can affect your partner or other family members, so it is crucial to make sure everybody is on board with your efforts. Perhaps you could research the trading of cryptocurrency together? Moreover, maybe your loved ones know somebody more familiar with crypto and put you in touch with them? Ultimately, it is a journey you could take together.
Clear the air and favor transparency, and you will be able to stand by your decisions wholeheartedly. After that, you should be able to engage with crypto with more confidence after hopefully receiving their support.
Recognize the Belief in Crypto
Cryptocurrency has its fair share of detractors, but there is a legion of digital currency enthusiasts for every naysayer. If you consider investing in crypto, you should try to stay updated with the discourse around it and how people perceive it as a viable opportunity.
For instance, some people claim that investor sentiment on cryptocurrencies has soured amid regulatory crackdowns worldwide. However, some savvy businesspersons are still investing enormous amounts of money into crypto exchanges, citing themselves as “strong believers in the fundamentals of crypto” regardless. High profile individuals are putting their money where their mouths are on these matters, and it bodes well for the future.
Is it a big deal that pockets of society are slowly moving away from crypto? Perhaps other people’s losses can be your gain? After all, the best investors utilize opportunities where others perceive there to be none. If the whole world turned against crypto, then cause for concern would be warranted. However, if there is still an appetite for digital currencies on the level of multimillion dollar deals, indeed others can also get involved proportionately. Why not you?
Of course, you should not follow blind optimism either. Dealing with crypto does require a good deal of skill and experience, so do not assume that the philosophies of big-name entrepreneurs will seamlessly synchronize with your strategies. Every user has something different to gain from bitcoin. Try to field as much consensus as possible, and do not lose your sense of rationality along the way.
DeFi is a common term in the crypto arena. It stands for decentralized finance, and it can mean great things for your financial future.
Cryptos are free of influence from most financial intermediaries and institutions. For instance, banks and brokerages cannot interfere and inevitably slow things down with your trading and transfers. Blockchain database enters the scene instead and ensures that users can conduct instant transfers anywhere, anytime. Costs and fees are reduced in these interests too.
In other words, crypto can be a streamlined investment opportunity, with fewer entities wanting to muscle in on your efforts. People mind their own business and stay in their respective lanes. All you truly need is an internet connection, and you can trade with confidence after that, knowing that anything is possible and that fewer people can hold you back.
DeFi protocols also enable you to earn interest on passive income yields. Yield farming is a reward scheme that involves lending out your crypto with interest instead of letting it stagnate in a digital wallet or exchange. It is a high-risk, high-reward scenario for those more experienced with ethereum, but it can still be good to know where your journey may eventually lead you.
Utilize Transparent Growth Vaults
Vaults are secure accounts that can store all your crypto assets without issue. They can also benefit your approach to yield farming.
Yield platform Unagii composed this guide to new growth vaults, which you should read through at the earliest opportunity. Their users can expand beyond stablecoins and now yield on Wrapped Bitcoin and Ether holdings as well. Unagii is notably transparent in its offerings, explaining that its new vaults will see higher imbalances due to the volatile nature of crypto assets. They have your best interests at heart and work hard to build trust between themselves and their users.
Ultimately, aligning yourself with services that are not ignorant to the level of risk you face should give you some comfort. It shows that they look out for you and try to educate you on what to expect. There are many unknown variables in crypto trading, but if yield platforms work to demystify much of that for you, it is a good sign that you can proceed under their guidance.
Set Your Expectations
While believing in the viability of crypto is crucial, it is also important to temper your expectations. After all, there are many stories about overnight millionaires who invested in crypto. It is possible to get lost in the sugarcoated narrative of it all.
Instead, it may be more prudent to focus on how cryptocurrency can be a helpful tool rather than exclusively reserved for elite investors. A good example is cryptocurrencies having filled in gaps when the Venezuelan economy was in crisis, protecting wages from inflation and making business cashflows more manageable.
While ambition is never a bad thing in crypto, an ‘all or nothing’ approach may lead you down a rocky road of misery. It may inspire reckless decision making or warp your definitions of failure and success. Why risk distorting how you can benefit from crypto? Instead, recognize the dynamic range of value that digital currency can offer and how it can improve your prospects in ways that do not just pertain to making you rich quickly.
Appreciate the risk factors, also. Due to its unpredictable nature, one person’s success story will not necessarily mirror the next person’s achievements. Do not let that knock your confidence, but rather let it drive you instead. You chart your own path, and your agency and intuition are what will bring you success with cryptocurrency in the end.