A few years ago, cryptocurrencies were an academic concept largely unknown to the world’s general population. This all changed in 2009 with the creation of Bitcoin. Today, most people are aware of cryptocurrencies, although they may not be familiar with how the system works.
The cryptocurrency market continues to gain traction in various facets of government, business, and personal financial activities. Apart from their value as payment mechanisms, cryptocurrencies have provided investors and speculators access to a dynamic and fast-growing market.
Recently, a dramatic meltdown in Bitcoin and other cryptocurrencies appears to have slowed, with investors left counting their losses after one of the most dramatic plunges in recent times.
We’ve asked 3 Crypto enthusiasts to answer some questions about cryptocurrency, and here’s what they had to say:
Tunde, Male, 27
“Cryptocurrencies are digital assets people use as investments and means of exchange. It is a good investment, especially if you want direct exposure to the stock market.
Buying the dip is you capitalizing on the market fall or the market’s bearishness. In most cases, you tend to gain more when you buy the dip because, of course, the market will skyrocket again, but then, you just need to know the right time to “buy the dip”; you don’t want to buy the dip when the market has only fallen halfway, there’s every tendency it will go further down.
I think the crypto market is approaching a level where it cannot go down any further, and once it reaches that level and all the factors that brought about the fall are sorted in the next few months, it can only go back up from there.
One of the mistakes I made in my crypto journey is Investing in tokens based on social media hype.
My advice for people considering getting into crypto would be for them to keep their minds always open and make smart decisions.”
Gbenga, M, 33
“Crypto is programmable money that has the potential to change how money is spent and used.
I think the crypto market is teaching hard lessons to everyone. I believe that many people still do not understand that most crypto projects do not have any use case.
For example, if someone makes a hundred Naira in a year, you go and mint one million tokens; whoever buys your 1 million tokens is only buying the crumbs of your 100 Naira. People need to understand that tokens need reasons to be valuable; until they have a real use case, they’ll keep losing money.
I would not advise anyone to buy the dip because 90-95% of crypto tokens don’t have any real value. Often, they attract value from other protocols that don’t have value – it’s like multiplying zero by zero. I don’t buy the dip on everything except BTC, ETH, and nothing else.
One mistake I have made is trying to time the market. A piece of advice I’ll give people getting into crypto is to choose your niche and try to offer real value. If you want to be a trader, don’t buy into the hype of anything, no matter how lucrative it is. If you are a trader, pay for all the tools that will help you see what is happening on the blockchain to see when something bad is about to happen and prepare for it.”
Folake, F, 28
“Crypto is a type of financial asset that requires, just like others, knowledge, research, skill, and experience to profit from. Buying the dip is one of the greatest cheat codes to quickly profit from crypto. With the current crash happening in the crypto space, if you have less than 30% of your assets in crypto, HODLing could be a good option as it’ll definitely recover sooner or later. If not, withdraw to stable coins or FIAT and save yourself some mental stress.
One of the mistakes I have made in my crypto journey is buying a coin upon Binance listing news. I made 200%+ before the last date and lost all upon listing (contrary to expectations of high hopes of a pump).
My advice to newbies would be never to urgently invest cash or asset they’ll need. They also need to note that it’s not a revenue generation means but an investment.”
With all the hype about crypto, the similarities in their answers point to the fact that you need to be knowledgeable about the cryptocurrency space before you dabble in it.