Today, when the cryptocurrency market is becoming more mature and boasts hardly believable ROI, more and more traditional finance-minded people are investing in crypto for superior gains. We decided to help newcomers with their first steps and present a quick introduction to the most important aspects of crypto investments.

Every novice investor has a number of questions that immediately arise in his/her head: what to buy, when to buy, and where to buy. We will try to clarify the main points that many beginners are concerned about.

What cryptocurrencies are there?

Launched in 2009 by Satoshi Nakamoto, Bitcoin was the first and the best-known cryptocurrency in the world. But what is cryptocurrency? 

To make the long story short, crypto is a digital currency built on the blockchain, somewhat like a totally decentralized and immutable database where no single person or group has control over the system. This makes crypto decentralized and non-controlled by governments financial instruments that can be used for payments, investments, store of value, etc.

Soon after the appearance of Bitcoin, alternative coins — or altcoins — began to appear. The best-known altcoins that are issued on their own blockchains are possibly Ethereum and Litecoin, but there are many more.

What are tokens?

Tokens, unlike coins, are not based on their own blockchain but are built on top of other blockchains, Ethereum or Tron for example. They are more like company shares or internal currency. Some tokens confirm your right to have a share in the project; others allow for using some ecosystem privileges, for example, to reduce the fees. 

Why do you need tokens if there are coins?

To the investors, tokens sometimes have a greater value than coins. Investing in crypto means investing in the success of some blockchain, whereas token investments are exposed to the success of a single project. Thus, the risk of investing in tokens is usually higher as well as the possible gains. Still, knowing the difference between a crypto coin and a token is paramount.

The investing process, especially when searching for cryptocurrency to invest in, is easier when all your crypto trading activities are presented on a single dashboard. Midas.Investments offers a complete solution for managing and monitoring passive income portfolios, which will be easy and convenient to use even for beginners.

How to choose a cryptocurrency wallet?

Choosing a crypto wallet is one of the main stages in the process of working with digital assets.

There are several main types of crypto wallets, that are presented below.

All these repositories for digital money differ from each other in the level of security and usage opportunities.

There is a myth that online wallets are not secure, because many of them store private keys on their servers, which can easily be hacked, but reliable online wallets do not have servers connected to the web, which protects them from possible attacks. Midas.Investments has multi-layer wallet security that protects your coins.

How and where can you exchange cryptocurrency?

There are several ways of exchanging cryptocurrencies for regular, fiat money (for example, dollars and euros): cryptocurrency trading platforms, cryptocurrency cards, which can be used to withdraw cash from crypto ATM, and the most popular – cryptocurrency exchanger.

The exchange algorithm is simple and clear even for beginners. It is alike on most exchanges: you find an appropriate exchange pair (for example, bitcoin-dollars), create a request form with wallet numbers, and receive your money within 15 minutes. The only drawback of this method is that you can often come across high fees. There are usually not enough reserve funds for popular exchange pairs on the platforms with small fees. For example, the Binance fee reaches 0.1% from each side, and the fee on one of the largest decentralized exchanger Bisq reaches 0.7% for the buyer.

Please note that there are a large number of scammers, so before exchanging money, make sure that you are going to work with a trusted platform. Thoroughly read cryptocurrency exchange reviews for an initial image before dabbling.

If you do not know where to start, just start with Midas.Investments. We have different strategies and shares that will help you to start your journey in crypto market

START INVESTING WITH MIDAS

What do you need to know before investing in crypto markets?

Despite the fact that the cryptocurrency market is very attractive, it is also very risky, therefore caution must be practiced before investing in crypto. Unfortunately, fraud is a common practice in the digital world and cryptocurrency projects are no different. There are several most frequent scams in crypto: fake websites and mobile apps, scamming letters on social media and emails, pyramid schemes, fake cryptocurrencies and others.

Furthermore, provided by the specifics of the market, the prices of cryptocurrencies are very sensitive to events taking place in the world and are therefore very unstable. When you become a crypto investor, you should form your own predictions about the events that influence the market and its further development, because crypto experts can also make mistakes.

To stay updated, you should check out these resources: CoinDesk, CoinTelegraph, TodayOnChain, CoinGecko, CryptoSlate, CoinMarketCap, Bitcointalk. With these resources, you will not only be able to learn more about cryptocurrency but also become a part of the community and take part in conversations with many crypto enthusiasts.

If you want to read more from us, you can follow our blog, where we frequently post on crypto-related subjects.It’s time to get started. Join us and start investing!

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Even if you’ve never invested in cryptocurrencies before, now is the time to start. The recent Bitcoin rally to $55k is just the beginning: many coins could grow by 100% in 2021. But how to create a profitable portfolio and minimize the risks? In this article, the analysts of the leading passive investment ecosystem Midas.Investments offer their advice.  

Passive or active investing? 

If you are beginning to invest in crypto in 2021, you have three basic choices: 

1) Passive HODL

HODLing means simply buying and holding crypto in a wallet, waiting for the price to grow. It’s the easiest method, but it’s actually not very passive at all: you have to keep tracking the market so that you don’t miss the moment to sell. Plus, you might have to wait many months to get your first profit.

Stable YAP offers investors the opportunity to invest in a fully managed and automated investment portfolio that offers long-term growth potential as well as a weekly payout in BTC.

Earn 12% APY

2) Active investing: masternodes vs. DeFi protocols

A masternode (MN) is a special blockchain node that ensures network stability and receives regular rewards (between 10% and 50% a year). They are considered one of the best crypto investments for beginners. 

On the other hand, there is a very attractive DeFi sector which was all the rage in 2020. Here, investors can provide liquidity to decentralized protocols, DEXes for example, but it is far too complex and risky due to impermanent losses and thus is not recommended to inexperienced investors.

Most investors choose shared masternodes, since operating an MN yourself is expensive and technically demanding. One of the best-known MN investment platforms is Midas.Investments, where you can choose between dozens of MN coins yielding between 6% and 430% a year. You can invest any amount directly in BTC, and rewards are mostly paid daily.

3) Active trading

The most basic strategy is to buy when an asset is cheap and sell when it appreciates. The advantage is that you can make 20-30% on a single trade, but prepare to spend a lot of time – possibly all your free time. Plus, the risks are high: some say that 95% of beginner traders lose money.

4 best tips from Midas Investments managers

1) Don’t chase the cheapest coins/masternodes. Some MNs are priced between $100 and $1,000, while others are worth $5,000 and more. A balanced beginner portfolio should center around mid-range and high-range coins because they offer a better risk-reward ratio. For instance, the highly-successful Midas YAP product (see below) includes MNs priced between $2,000 and $25,000 and yields around 26% a year. 

2) Don’t dump everything into Bitcoin. Bitcoin will certainly grow further, so you should allocate a part of your portfolio to it. But there are many cheaper, high-potential coins that can appreciate more than Bitcoin in 2021 and yield a higher passive income while you hold them. Examples include Midas (24% APY), Energi (33%), and DIVI (25%).

3) Invest in a ready-made portfolio. If you are not sure how to allocate your funds, it’s better to pick a managed portfolio designed by a professional fund. For example, Midas Investments offers a product called Masternode YAP (Yield Automated Portfolio): a balanced portfolio of 8 coins that pays 16% APY. All the rewards are paid in BTC on a weekly basis. 

4) Try social trading – but be careful. Many newbie traders use social or copy trading, meaning that they automatically copy the orders opened by experienced traders. This is usually a paid service, and the idea is that you risk less by following a pro. The problem with this method is that you don’t know the pro trader’s strategy and you can’t judge their skills. If you lose money – which happens very often in copy trading – you won’t even learn anything.

A few final words

If you want to get the most out of the 2021 crypto rally, it’s better to act now. Head over to https://midas.investments/, register an account in one minute, choose your masternode coin – and enjoy daily rewards starting from tomorrow. When your coins appreciate, you can withdraw and instantly sell them on the built-in Midas Exchange. This will give you the best of active and passive crypto investments with minimal risks. For more information, read guide how to earn crypto interest.

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