Crypto, blockchain, Web3 – Latitude59’s Future Stage has much in store for enthusiasts of the trendiest world-changing technologies. And if crypto is still a foreign language for you, no worries – Latitude59’s partner SwissBorg has put together an easy-to-digest introduction to all the crypto-related topics.
At the end of the article, you’ll find a quick guide to diving into the crypto-verse yourself, through private investing. If that floats your boat, read on! Furthermore – come and join SwissBorg’s workshop “Journey into Crypto Wealth Management” at L59, on Thursday, May 19 at 10:15 (Terrace Hall, registration required).
What is crypto?
Cryptocurrency, better known as crypto, represents any digital currency that is decentralised and based on cryptography. Cryptography refers to a mathematical technique that fosters secure, anonymous and trustless transactions. These types of transactions don’t involve any intermediary, giving both the sender and the receiver complete control and privacy.
This decentralised aspect is probably the biggest reason behind the interest and popularity that crypto enjoys. It is what gives crypto holders the guarantee that their assets are not issued or controlled by any bank, government, or country – the polar opposite of fiat currencies.
It also connects to blockchain, the distributed ledger technology powering crypto. A blockchain is where crypto transactions get recorded, and it operates in quite a genius way. Information is collected into groups, a.k.a. blocks. Once a block’s storage capacity is filled, it’s closed and linked to the previous one, forming a chain of blocks, hence the name “blockchain”.
The digital ledger that is the blockchain is duplicated and distributed across a network of computer systems, making it very difficult to change, cheat or hack. Taking into consideration the potential that this technology holds, it doesn’t come as a surprise that many other industries are looking into ways of potentially using blockchain themselves – startups being the frontrunners.
Crypto as an investment tool
Crypto belongs to one of the most revolutionary yet complicated technologies. Still, thanks to it, profit is being made left and right on technologies and assets, sometimes bearing names fit for Marvel’s next superhero.
The discussions around crypto can get pretty heated. Will you get caught up in the hype on the wrong asset and lose it all? Or will you be “rolling in dough” thanks to crypto, just like Changpeng Zhao? Your knowledge, amount of research as well as some luck will be the determining factors here.
These are the main reasons why so many people believe that crypto has a bright future and are ready to invest in it:
You are investing in the future
Crypto is seen as a strange and unbelievable invention, exactly like payment cards once were. Still, just because you don’t understand something at the moment does not mean it will not become a staple in your life at some point.
As our lives adopt a faster pace, the need for making faster payments also arises. Exactly this is where crypto comes into play! But, to be fair, crypto and its blockchain technology can offer us much more than a new medium of exchange.
If blockchain enthusiasts are to be believed, blockchain will be adopted in many industries ranging from entertainment all the way to finance and government. That is why many see investing in blockchain-powered projects as investing in the future that awaits us all.
It’s the latest method of hedging against inflation
Inflation – a word that causes fear in the minds of those who truly understand its meaning and those who don’t. That being said, it comes as no surprise that many do their best to protect themselves from inflation, and crypto seems to be the latest tool used for that.
This is especially true for Bitcoin, the most popular crypto with built-in scarcity.
Once Bitcoin’s hard cap is reached, mining will stop, and its value will grow. Put simply, as there can’t be any more Bitcoin once the maximum supply has been mined, it serves as a great anti-inflationary tool, possibly overthrowing the current go-to, gold.
High risk can bring high rewards
Every investment bears a risk. This risk is even higher when it comes to crypto due to its volatile nature. But, looking at the impressive returns many in the crypto sphere have made, maybe the risk is worth the reward.
Just take Bitcoin as an example and look at how much its price rose from 2012 to 2021.
Of course, Bitcoin does have the huge advantage of being the first crypto that garnered massive interest and, with that, massive value. Regardless of that, what is great about this industry is that new projects arise on a daily basis, and if you are attentive and lucky enough, you might be one of the first to invest in the “new Bitcoin”.
If not, already-established coins are always an option since it’s never too late to “get into crypto”.
How do you get started?
Learn about different cryptos and find what you like
The crypto market is a vast one filled with endless options. From meme coins to serious DeFi projects that might change the world, there is something for everyone. That being said, finding what you should invest in will take plenty of research, as every crypto project is unique.
You can start the research by creating a list of all things worth looking into:
- the basics of the project
- the team behind the project
- the purpose of the project’s coin/token and where to buy it
- the project’s roadmap
- the project’s partners and competitors
- the projects USPs
- the project’s community and public sentiment surrounding it
Decide how much to invest
Unless you are an avid risk-taker, you need to know how much you are willing to invest and, in the worst-case scenario, how much you are willing to lose.
Even though what you invest in crypto could potentially sky-rocket your net worth, the chances of things going south still exist, so why not make plans while taking that into consideration?
Know your risk and how to manage it
While we are on the topic of risk, it’s important to mention that special attention should be given to getting to know your risk as well as the techniques used to manage it. Different cryptos have different risks, so the ones you will face will be based on the investments you make.
When it comes to managing those risks, many options are at your disposal. Still, there are some general tips that should be followed by everyone, and these include continuously educating yourself on crypto investing, following the proper security practices and diversifying your portfolio.
Pick the right crypto exchange
For many, the scariest part of crypto investing is completing the actual purchase. Will you get scammed and lose your money? Will the crypto go to the right wallet? Will you get the best price? These and many other valid questions arise before clicking/tapping that “Buy” button.
To make this process as effortless as it can be, there are tools such as SwissBorg. With its revolutionary app, SwissBorg facilitates buying, selling and exchanging cryptocurrencies with 16 fiats in a tap with completely transparent fees. To you, as the app user, this means that you don’t need to check multiple exchanges to find the best prices, complete more than one KYC process, or do manual portfolio or asset analysis. Amazing, right?
SwissBorg is just one example of a tool doing crypto investing the right way. As always, it’s up to you to find the one you like best.
Keep an eye on the market
Crypto investing is not a one-day thing; it’s an ongoing process that requires keeping up with the highly-volatile market, the latest trends, as well as the company behind each crypto project you put your money in.
Depending on how many investments you made, there might be a lot of keeping up to do. For an investor looking to make a profit, this is a day-to-day activity and a small price to pay when compared to the possible gains.
So, when you do decide to dip your toes in crypto investing, do your homework and your own research, monitor the market, and don’t be lazy about it. At the end of the day, it might be what makes or breaks your crypto investor success story.
If you have any questions about the topic, SwissBorg’s team is happy to have a chat with you at L59’s Demo Area on May 19-20.