The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
As the crypto market currently faces a decline many are dumping risk assets, so could now be a good time to mine and invest?
Research from Traders of Crypto earlier in 2022 revealed the most profitable cryptocurrencies as being Ethereum, Verge, and Dogecoin.
Interestingly, the three cryptocurrencies identified as the most profitable earlier this year are still trading but at a largely reduced rate.
The question is, should we be investing in crypto now?
Of course, the main difference here is that the crypto industry lacks that fundamental regulation and can therefore be a riskier investment.
If you are looking to invest within the current market, here are three top tips from the experts at Traders of Crypto:
One – Crypto mining
By mining you can earn a cryptocurrency without having to invest your own money. However, to be competitive you probably need to spend a lot of capital on a mining rig or tech equipment, also the electricity use will be high which currently is not ideal.
Two – Invest small
As this is a risky investment try to invest a small amount of money and watch it closely on a regular basis. Don’t ever invest what you can’t afford to lose. Investing small and often is referred to as DCA (Dollar Cost Averaging) in the US. The idea is that you put a little aside every week or month on a regular basis.
Sometimes you will get a great price and other times a worse price, but it could average out over time. At this moment crypto prices are low compared to how they may be at the next cycle peak, although as the market is unstable when this peak will be is uncertain.
Three – Understand the market
Like with any investment, be aware of the market and get to understand what exactly is happening at the moment, this will ensure you are making a decision based on knowledge which will mean you understand the level of risk involved.
Read more about Crypto Mining Returns.