Crypto is a game of inches that requires baby steps. These little steps could determine your potential for crypto gains in the future when done properly. In any industry, there is a learning curve. Think of anything you have set out to do and then accomplished. There is always that trouble at the beginning that comes with trying to learn something new, with trying to navigate unknown waters.
The Crypto Market is Unique
As a crypto newbie, you should conceptualize your efforts to acclimate yourself to the space and earn crypto gains as a struggle against yourself. Why against yourself?
Because, particularly at the beginning stages, the biggest obstacle to your success is going to be the mistakes that you make.
Now, it is inevitable that newcomers to the crypto space will take a few wrong steps. These might not be serious blunders or clear-cut bad decisions. Rather, what is most likely is that you will simply fail to see an opportunity that you could profit from or won’t take advantage of an opportunity in the most advantageous way.
This article explores a few tips and life hacks that will see you moving past the slip-ups that newbies often make, transforming you into a pro that achieves crypto gains with ease.
1. Using the Right Exchange Pairs
When people start out in crypto they almost always are looking to do one thing: exchange some kind of fiat currency for bitcoin. Bitcoin is the biggest cryptocurrency around and its appreciation in value over the past year has been remarkable. Bitcoin investors have accumulated crypto gains since it launched and continue to this day. BTC has gone from a value of around $4,000 to where it is today, around $34,000. That is crazy and has led to a lot of people trying to get in on the action.
Naturally, exchanges know two important things related to this. The first is that newcomers are likely to have blinders to all other cryptocurrencies besides bitcoin. They are going to want to earn bitcoins and get it as fast as possible.
The second is that, due to inexperience, they are unlikely to have a great grasp of how prices can fluctuate among exchange pairs. Because of that, exchanges tend to charge exorbitantly on exchanges from fiat currencies to Bitcoin, and vice versa. These rates can be as much as 30% more than the market price for BTC.
So, you should be smart about buying in. Rather than going directly for BTC, take a side route and buy a different cryptocurrency first, then exchange that currency for BTC. Even another major currency like ethereum has a much better exchange rate with fiat than bitcoin.
2. Keep up with Everything Going on in Crypto
This could be tough. If you are new to the space, all the terms that are used and the seemingly infinite amount of currencies out there can be overwhelming. It’s almost like learning a new language.
But consider it this way, the knowledge you have of the industry and everything that is happening in it stands to directly benefit you financially. Cryptocurrencies are incredibly volatile, and fortunes are still made and lost over the course of a single day. Holding and trading cryptocurrencies without keeping yourself up to date on everything that is happening in the industry is like going about blindfolded.
Prices are affected by the constantly changing news cycle. By following the news, you will be able to protect yourself from foreseeable vulnerabilities and you will also be able to identify profit opportunities. You should also start frequenting social media communities like r/cryptocurrency where users share news and will help you learn the ropes.
3. Don’t Break the Bank on Transaction Fees
Transaction fees are a killer. The last thing you want to think about when you’re trying to exchange one currency for another is how much you are going to have to expend on the transaction itself. Unfortunately, on most exchanges rates on transaction fees are substantial. These fees would hurt your crypto gains.
However, that is not the case everywhere. There are a number of platforms, like StormGain, that offer affordable fee structures for trading on their platform. That means that you can exchange coins with other users and with yourself without having to pay exorbitant fees for processing your transaction. While it may not seem like much, trust us, in the long run, these kinds of fees really add up. Additionally, StormGain allows you to mine Bitcoin without having to invest in hardware or pay a subscription fee for their services.
4. Crypto Cashback Programs in E-commerce
One of the cooler use cases to have emerged in crypto is that of cashback programs. Using platforms like BlockFi and Lolli, you can take care of your shopping needs while also earning crypto gains.
The platforms are pretty simple, you load up a certain amount of money in fiat on them to use shopping, and a percentage of that money is taken out and returned to you in the form of cryptocurrency. While you might not think it would amount to much, just think about all the online shopping you do. These programs include ecommerce behemoths like Amazon and food delivery services. They are a great way to kill two birds with one stone.
5. Identify Promising New Projects and Take Advantage of Airdrops
It seems like everyday there is another new crypto project that claims it is going to change the world. Obviously, more often than that, that turns out not to be true.
But, we are in an unprecedented bull run and there are plenty of crypto gains to be made in small, newly-launched projects. If you stay up to date on what’s happening in the industry and use social media and other tools to discover new projects, you will be able to identify new projects that have promise. A small investment in one of these could go a long way.
Additionally, you should use tools to find out when the next airdrops are happening and how you can participate in them. The beauty of airdrops is that they are a free way of taking a flyer on a coin or token. You don’t lose anything and, if the market continues its current trajectory, you are likely to profit on them.
These are just a few of the many insights that experienced crypto users have gleaned. This is still a relatively young industry that is changing at a fast pace, so this knowledge is subject to change. You should avail yourself of all the resources you have at your disposal in order to generate maximum crypto gains from the market.
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