By Marcus de Maria, CEO of Investment Mastery
As the emergence of cryptocurrencies continues to grow, for investors and speculators there will be huge opportunities, but only for those that have the right strategies and knowledge in this field.
Cryptocurrencies are powered by Blockchain, in the sense that the building blocks are structured by the security that the Blockchain system provides. Blockchain is the name given to a secure system of recording digital information in a way that makes it difficult or impossible to override, hack, or cheat. A blockchain transaction is essentially a digital ledger of information or record that is duplicated and distributed across the entire network of computer systems on the blockchain. Blockchain as a tool can be used to secure a cryptocurrency or secure a legal document such as a lease or export finance agreement.
Many investors may jump feet-first into crypto without testing proven strategies, and then risk losing money. The key to avoiding this is the same as with any other project – knowledge and patience. By setting up an initial demo account investors can take the time to test strategies and perfect them for when they will start investing money. This has been proven to dramatically reduce risk.
Decentralised finance essentially takes the influence away from government and banks, while cryptocurrency offers a secure, digital alternative to fiat money – i.e. the pound coin in your pocket – which is made legal tender by government decree. It enables individuals, investors and speculators to get better returns on investment. Traditional banks currently offer little to none return on cash, so crypto can be a much better option to offset inflation.
There are two systems for purchasing cryptocurrency – centralised and decentralised – and there are pros and cons to both. For investors and speculators that want to set up their crypto account fast, the centralised system allows a quick execution of orders and is the more standard system for cryptocurrency. However, the centralised system does not have a strict security process and is therefore more at risk and prone to hackers. With the decentralised system, there are less features on offer and it takes longer to execute orders, however it is a much more secure system and impenetrable to hackers.
Following the set-up of a demo account for first-time crypto investing, it is beneficial to set up an indicator, a mathematical strategy, that allows the investor to have an entry level point based on the price and the volume of sales. The indicator shows when a crypto is oversold and thus offers a good entry point. The benefit of this strategy is that every time the crypto value peaks and then dips back below the indicator, investors can make a second and then third entry point. Once a targeted profit is reached, a stop-loss method can be employed to ensure this profit is not lost. If investors and speculators repeated this strategy, they would have a much better chance of the value rising again and achieve significant returns.
It is quite common these days for people to have multiple revenue streams of income. For investors and speculators in cryptocurrency, they can receive a passive income via staking or dividend payments, which means if the coin performs well they can profit in addition to receiving an income.
Staking is essentially lending the crypto currency that you own for a fixed period. It can be done in two ways, either through paying a fee to a third party that will do the work for you… or you learn how to do it yourself. By learning how to maximise the return on crypto through active and passive income without third-party involvement, the risks of losing return are dramatically reduced.
Getting involved with the launch of a new coin early on is most certainly the best route to go. Of course, there may be some challenges to this, as a stand-alone investor or speculator might not have the means to raise a large enough investment for a newly launched coin. The good news is there are platforms available, such as Investment Mastery that can provide guidance on which launch to invest in. It can also provide a group investment option so investors can still go ahead without the challenge of raising a large sum.
Ultimately, investing in cryptocurrencies can lead to wealth creation if the right strategies are put into place, and a solid plan leads the action. This digitalised currency is no longer a fad; we are seeing more and more investment into it every day. This will mean a rise in investor competition and a real need for those embarking on crypto investment to seek the right expertise and guidance to ensure there is ample return.
When it comes to investing in cryptocurrency, knowledge certainly is power.
About Marcus de Maria, CEO of Investment Mastery
Renowned stock market and wealth educator, investor, and entrepreneur Marcus de Maria is the founder of Investment Mastery, one of the world’s leading investment and trading education companies.
A sought-after keynote speaker on wealth creation who has shared the stage with some of the world’s leaders in business, success and philanthropy, Marcus has gained mutual respect from many high profiled individuals including Richard Branson, Robert Kiyosaki, Tony Robbins and Brian Tracy.
Marcus is also the author of three books including The Lunchtime Trader, a guide on how to build indestructible wealth by trading stocks for just 20 minutes a day.
After experiencing financial difficulties, Marcus went from being £100,000 in bad debt and sleeping on his brother’s floor to taking control of his financial future and learning strategies to become financially fit, building multiple pillars of wealth for security. He now uses all he has learnt to help others follow this path of wealth creation.
Marcus and Investment Mastery’s greatest adversary is the “Get Rich Quick” mindset – their aim is to educate others on how to create financial independence, security, and ultimately wealth, for themselves and their families. He also aims to teach students about some of the most misunderstood wealth creation vehicles, such as cryptocurrencies and the stock market.