Money Making Beginners Guide to Cryptocurrency, Ajeet Kumar [romantic books to read txt] 📗

Without the benefit of standard deviation, you could've gone for Bitcoin, which has a reasonable chance of registering a lower annual return than your required minimum. And even though its mean or average annual return's the highest, it's also the most volatile with the highest standard deviation, which resulted in the lowest among the low end of the expected return spectrums.

Diversify

A very crucial hodling strategy that you can apply to practically any financial investments, it means to spread your investment eggs in different baskets so that if one investment basket drops, your other investment eggs won't crack. And more than just investing in at least 2 cryptocurrencies, you must also make sure that you don't put all your investible funds in cryptocurrencies only. Why?

Because Bitcoin, Ether, Litecoin, and other altcoins belong to the same class of financial assets, which is cryptocurrency. There's a good chance that when something happens that concerns or can affect the whole cryptocurrency industry, the prices of all your cryptocurrencies may simultaneously take serious hits. For example, if the Federal Reserve makes a pronouncement that will make it more difficult to transfer funds from banks to cryptocurrency exchanges, it won't just be the price of your Bitcoin that will go down. But if you also diversify your investments to other financial assets, you reduce the potential impact of negative events on your total portfolio.

Cost Averaging

This is a very useful hodling strategy that can help you earn good returns despite substantial price drops in the cryptocurrencies in your portfolio. So how does cost-averaging work?

Cost averaging refers to a method of investing by which you buy more units of a financial asset (cryptocurrencies, bonds, stocks, etc.) when prices go down. You may be thinking: "Why the heck would I buy more units of a financial asset whose prices are going down?" That's a good question, one that I'm inclined to answer.

The principle behind cost averaging is this: by buying more units of a financial asset when its price goes down, you bring down your average initial cost per unit of that financial asset. So what's the significance of this? If your average cost goes down, your breakeven price for that financial asset goes down as well. That means you don't have to wait for the price of that financial asset to fully recover just to break even. And if the price eventually goes back to the same one at which you originally bought it, you won't just break-even but make a profit already!

Allow me to illustrate with a practical example. If you bought 1 Bitcoin at $10,000 and its price plunges to $6,000 afterwards, you would've suffered a $4,000 or 40% loss on your investment. For you to break-even, the price of Bitcoin has to fully recover back to $10,000. And for you to make a profit, you'll have to wait until Bitcoin goes above $10,000 per unit.

Conclusion

There is no denying that the next frontier in the evolution of world financial systems is Bitcoin and other major iltocoins, such as Ethereum, Litecoin, Ripple and Monero. As such, good quality ICOs Also has a bright future in the world of digital finance. But cryptocurrencies - both current and future

- require smart work and complete self-discipline to be able to successfully take advantage of the odds and opportunities. The extent to which you can act smart and control yourself, especially your emotions is the extent to which you can successfully make money through HODLing Bitcoin and other cryptocurrencies.

To recoup, HODLing refers to holding or possessing cryptocurrencies and the term is a misspelled version of the word "hold" which has evolved into a term accepted in the cryptocurrency community.

HODL is also a long-term investment approach, also called a buy-and-hold approach. To successfully do HODL, you must have two phases: the pre-HODL phase and the actual HODLing phase.

Pre-HODL Phase When you prepare to take a position in cryptocurrencies knowing your investment goals or objectives, establish your minimum allowable return, estimate how much risk you can take and ICO. No read the white papers, if you are looking to buy 'new tokens or coins. The actual HOD

dealing phase involves selecting the best cryptocurrency based on the minimum expected range of returns, diversification, and average cost.

Before proceeding with the basic concepts of cryptocurrency mining, I thank you for your interest in downloading my book. I am always fascinated by this modern day financial system. I believe that anyone who has invested his time and money

The book is part of an interest in this new form of encrypted exchange, partly dubious, uncertain and skeptical about the concept.

There is nothing wrong with being skeptical and being a little negative about what we do not know. I know I was once negative. Terms like Bitcoins, ICOs, Blockchains, Cryptocurrencies, Vote Notes -

these are all new to us, and we have a right to know about their history, functionality, benefits and anything in between.

Thus, in this book, I will introduce you to the terminology of cryptocurrency, as well as give you a brief description of how it operates and pays the investor. Is there any possibility of that? Yes, it does, but some aspects make it a sensible environment.

First, let us understand how we can define cryptocurrency.

A cryptocurrency is defined as an asset created to function as a digitally conducted mode of exchange.

It implements a protective technology called cryptography, which controls the production of more credit units and monitors their transfers between parties.

Simply put, cryptocurrencies are a form of currency in a digital world that does not follow the rules and regulations of the central banking system. Transactions work through a decentralized database called a blockchain, which we will examine in detail in later chapters.

Bitcoin, which emerged as the first cryptocurrency in 2009, has gained worldwide fame over the years. It was Satoshi Nakamoto, a nickname used by an individual or group, who developed Bitcoin as the first cryptocurrency. Also, they faked the start of the blockchain database.

Since then, numerous decentralized cryptocurrencies have improved the functioning of traditional financial systems. Bitcoins and alternative cryptocurrencies (also known as altcoins) are already seeing tremendous growth, making them part of a new technology in the financial world.

As the digital age evolves to new levels, Bitcoins and other cryptocurrencies are likely to grow rapidly in the future. With the benefits of providing multi-operational utilities in the financial sector, cryptocurrencies are developing an open system that will allow us to exchange credit in a way that no one thought possible.

Thus, it is even more significant that you learn about this digital phenomenon and familiarize yourself with how it works to protect your financial assets.

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Simply as a “Thank you” for choosing this book, I would like to give you access to an exclusive masterclass access, that will offer you an INSIDER GUIDE to more crypto strategies to get you start making money. If you’re someone looking to go to the next level in your crypto success, simply click the link above for the MasterClass!

Imprint

Publication Date: 04-28-2021

All Rights Reserved

Dedication:
This book offers you an INSIDER GUIDE to more crypto strategies to get you start making money. If you’re someone looking to go to the next level in your crypto success, this book is for you.