Strategies to Help You Navigate the Blockchain Space
Not sure where to start with cryptocurrency or smart contracts? Check out these expert-approved strategies to help you navigate the blockchain space.
Blockchain technology has become one of the most uniquely revolutionary advances in computer programming in recent years. It's so revolutionary, it's disrupting industries throughout the world and has even brought about an entire market of non-fiat money that's rapidly gaining more widespread use.
If you want to actually make money or rank among the top blockchain influencers out there, you will need to learn more about it. To do this, you need to have a strategy to help you determine what's the best way to profit off this new sector.
Want to make money off cryptocurrency trading? Want to learn what are the best strategies to help you navigate the blockchain space without losses? Here are what experts have to say.
Before you get into that initial coin offering, look before you leap.
Everyone and their grandma wants to get their paws on the latest and greatest ICO. This is because everyone is hoping to find the next big cryptocurrency to boom—and that tends to be some pretty toxic thinking.
Just like with any other major investment, it's crucial to look before you leap. Fake ICOs have happened, and when they did, perpetrators swindled thousands out of millions of dollars. The reason they were capable of getting so much money from so many people was because people didn't look before they leap.
Don't get greedy. Not every cryptocurrency will be a massive gain. Some will be frauds. It's up to you to do your homework, and that commitment to due diligence is what will be one of the best strategies to help you navigate the blockchain space.
Don't believe the hype.
Another one of the top strategies to help you navigate the blockchain space is approaching things with a more rational mind. Everyone is hyping everything. Whether it's a bunch of "elite" blockchain projects to new digital currencies, you should never believe the hype.
If you wan to avoid loss, you will need to avoid bubbles. The crypto world is filled with the potential for bubbles. Don't believe it? Warren Buffett notoriously said:
"The only way you get a bubble is when a very high percentage of the population buys into some originally sound premise… that becomes distorted as time passes and people forget the original sound premise and start focusing solely on the price action…"
Remember that greed never works out in the long run.
The blockchain space is a literal goldmine—and that means everyone wants to find new ways to profit off the tech. Greed is one of the biggest reasons why bubbles happen, and it’s because everyone gets greedy and assumes that the price and value of items will continue to go up.
Though the constant upward motion is the general trend of the stock market, the same cannot be said for cryptocurrencies. Greed is not a good thing here, and that’s why holding onto your cryptocurrencies can be a very costly mistake!
Don’t invest anything that you couldn’t bare to lose.
There’s one rule to investing that also remains one of the best strategies for navigating the blockchain space without going nuts: don’t afford money you can’t afford to lose. If you pour all your money into digital currencies that die out, you just lost money that will put you into a major bind. That’s not a good look!
It’s important to remember that most blockchain currencies don’t have federal backing or guarantees. If you lose that money, it’s gone. Kaput. Blotto.
Did we mention it’s important to reach out?
If you ask top influencers what their favorite strategies to navigate the blockchain space are, they’ll almost always mention meeting up at conventions and meet ups. The more you maintain a dialogue with others in the blockchain space, the better off you will be—and the more you will be able to enjoy the benefits of investing.
Use an ICOlist to find the newest ways to invest.
If you’re like most blockchain newbies, you’re probably wondering how all those people get into an ICO in the first place. They use an ICOlist to find out where the newest coin offerings are—and then do due diligence to find out whether or not they are a good choice.
IcoBazaar, for example, gives you updates on all the newest coin offerings as well as important details.
Listen in on cryptocurrency forums—lots of them.
One of the smartest strategies to navigate the blockchain space is to hear what everyone else has to say about the newest developments. This isn’t always easy, though, since different forums will have different ideas about what’s going on. To get a full scope of what’s happening in the crypto world, you need to consider joining at least five or six forums dedicated to blockchain and blockchain projects.
The more you participate, the better a beat you’ll get for the decentralized tech world. The better you understand everything, the easier it will be for you to figure out how to work your own way into the blockchain tech industry.
If you're really skeptical of the crypto world, sit and wait to see how things work out.
In many cases, hype can make markets extremely volatile and unpredictable. Even experts get a bit leery of blockchain investments because of it, which is exactly the reason one of their favorite strategies to help you navigate the blockchain space is to wait things out.
If you're not 100 percent sure that you want to invest in something, or are worried that an ICO might end up flopping, this is a good way to ensure you don't lose out too much. It's one of the easiest ways to navigate crypto hype waves.
Trackers can tell you all the movements of cryptocurrency values and even give you a better idea of which will be working their magic. Depending on which tracker app you use, you can get very detailed information about all the coins in your cyber-wallet at the touch of a button.
The more information you have, the better a decision you can make when trading cryptocurrency. Needless to say, keeping a good wallet and cryptocurrency tracker on your phone is a wise decision. This takes care of the strategies to help you navigate the blockchain space for you.
Last of all, if you're not sure what to do, stick to ways to make money off blockchain without involving blockchain.
Mining rig sales, stocks based on blockchain, and other more solid investments are conservative while still parlaying blockchain's popularity into their profitability.
That just goes to show you that, at times, the best strategies to help you navigate the blockchain space are the ones that dissuade you from going "all in."