Home Altcoins News What should a Potential Cryptocurrency Investor Know? Parking Value in Stable coins like USDC USDT

What should a Potential Cryptocurrency Investor Know? Parking Value in Stable coins like USDC USDT

Cryptocurrency Investor

It takes entities or people with discretionary money to play the investor game-wise, whether in the stock markets, cryptocurrency markets, or any market for that reason.

Decentralization and peer-to-peer money were the vision of Satoshi and others who advocate the cryptocurrency concept.  Decentralization made it possible for retail investors to have an opportunity to make a short-term or long-term bet while becoming central in the crypto-economy.

Before buying into crypto, it is not uncommon for investors to be wandering without a clear definition or direction.

The first step for any prospective investor into the cryptocurrency space is to understand the importance of parking the funds in a stable coin like USDC, USDT, or others.  (Obviously, there are issues and contradictory opinions on stable coins) For now, in the cryptoverse, parking your value in stable coins makes sense.

Stable coins are the first competitor to fiat currency.  Stable coins peg their value at par with a government currency.  While there is a lot of argument about alternative money happening, citing tokens like Bitcoin, Ethereum, and other Altcoins, stable coins have silently pegged themselves to a real-time fiat currency, making it worthy for any cryptocurrency investor to park their value in the crypto-verse.

For those who do not understand cryptoverse, it is the industrial jargon for the world of cryptocurrencies.  Once the value is parked in stable coins, the buy and selling of crypto become easier.

Dumping loads of fiat value into the cryptocurrency space is not an every man thing.  The idea of dollar-cost averaging is for those willing to try their shot in the cryptocurrency space.  Irrespective of the volatility swing, a prospective new investor can consider investing a standard amount of value in the cryptocurrency space, stacking a particular type of cryptocurrency through highs and lows.

Those who do not know what to do in the crypto space can go by the common sense logic of simply holding the token until the value is more than what you bought it for. Long-term holders and early adopters are always on the profit-making side.  Identify a project with a profit-making potential and invest your value there.

Those who have a high-risk appetite and a lot of money to investors follow a different path. Finally, those trying to start small do the best, parking their value in a stable coin and then working by the principle of dollar-cost averaging.

 

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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