- What can you say about Crypto Investment and how to properly utilize the investment tools available to make the right decisions?
In the crypto world, i believe it is safe to assume every individual walks in with a mindset of making a profit, Investment in layman's terms in this context can be seen as simply purchasing an asset with the particular mindset of making a profit from it either from price inflation or heavy demand. With this insight, we can safely say that cryptocurrency investment involves the purchase of asset with a mindset of making a profit no matter how little or large from that asset purchased
The duration of a cryptocurrency investor depends on the individuals mindset as they mainly have some traders who are looking to make quick cash who often go for a short term investment, short term does not necessarily mean quick cash it might simply just mean faster output than long term, Long term investment involves a longer duration of investment and it offers an often slower payout than the short term.
Unlike other types of investment the crypto trading offer one an opportunity to make inde[th resaech about an asset and close view of how well the asset is performing on a general term, For instance the blockchain explorer and platforms like Coinmarketcap tend to give one a general overview of an asset and due to the fact that most crypto assets are decentraised all information about an asset is genuine and is made completely public for transparency
Cryptocurrency opened up a world of opportunities for several investors with is a decentralized feature that gives one absolute control of his asset, normally before one purchases stock in a centralized system one has to remit lots of private information have his background checked and go through unnecessary checks before purchasing shares from a company and even after going through all these checks the board can chose to deny your shares purchase.
Crypto Investment eradicated all the unnecessary and unwanted questions although the crypto investment comes in different forms
- STAKING: which involves locking away some certain amount of your crypto asset to provide liquidity and also accumulate interest which in some case can be up to 96% APR
- HODL: is a term abbreviation used by asset holders which means Hold On for Dear Life, thises type of investment involves buying an asset and holding for over a long period of time regardless of whether the asset is losing value until a comfortable amount of profit is made
- TRADE: This form of investment requires one to buy assets and sell of at a rate higher than what was initially paid for.
HOW TO UTILIZE INVESTMENT TOOLS FOR EFFICIENT INVESTMENT
Cryptocurrency offers a vast field of opportunity for investment but for one to properly maximize and utilize the crypto world one has to have a proper STRATEGY or guideline by which he follows to avoid unnecessary loss of capital for investment or ending up buying a coin at a low rate that os continuously going to keep losing value and profit will end up never bienf made. Strtegies can be implemented by an individual in forms of conditions that one has to follow before buying an asset for resell or proper market research before staking an asset
Another very important factor to take note in the cryptocurrency world is the TECHNICAL ANALYSIS, all basis of cryptocurrency either trading,staking,hodl or other forms of investment I believe should be based on this foundation. The technical analysis gives you a closer look at how well an asset is performing form an in-depth perspective and all this is made possible with the help of technical analysis tools like
- INDICATOR
- CHARTS
- OSCILLATORS e.t.c
Tools like the On-chain metric can be applied to help one utilize and invest properly as the give you a bit more broader overview of how well an asset is performing with a range of tools like the RUPL, SOPR, MVRV e.t.c to properly analyse an asset
- Talk extensively about the following. Also, highlight the benefits and risks associated with each.
i. Private Sale in Cryptocurrency.
ii. Presale in Cryptocurrency.
iii. Public Sale in Cryptocurrency.
PRIVATE SALE
Private sales is a primary state of a token, before a token is launched potential investors are gathered together and are offered opportunity to buy the token at a much lower rate than it would be sold for when it gets listed, the funds usually gathered in this meeting is used to finance either the launch.
The investors of course expecting to make a huge profit will make purchases with hope that when the asset gets listed can sell and make a huge profitable turnover. The private sale often involves a closed circle and only invited investors are allowed in on this session cause the asset is not yet listed the public will only know of the asset but won’t have a means of purchasing it
PROS OF PRIVATE SALE
- If an asset is purchased at its early stage in most cases when it makes profit a huge profit is expected because in most cases the coin is sold at the lowest price it is ever going to be.
- There is no much competition in buying here
CONS OF PRIVATE SALE
⁃ An asset can be purchased and instead of it to make profit and grow in value it is possible for its value to keep declining and remain at a lower rate than was initially paid for at the private sale
⁃ Limited number of assets is made available for purchase
PRESALE
The presale phase can be regarded to as the second stage before an asset’s launch, in this phase the call on investors is made a little bit larger than it was in the primary stage. The token is still sold at a lower/discounted rate hence those eager for opportunity to participate in the first round might get opportunity to partake in the presale phase so that when the asset starts to make waves they will be able to turnout with a huge profit
The aim of the presale phase is similar to the initial private phase in the process of listing an asset. The team hopes to more amount from fundraising in addition to the private sale phase so a much larger number is allowed to participate this time.
PROS OF PRESALE
- Assets are purchased at a lower/discounted rate in this phase
- A larger number of asset is available for purchased because a larger number of investors are targeted in his phase
CONS OF PRESALE
- There is a limited number of tokens that can be purchased because a larger crowd is participating this time
- It is possible the asset will decline in value after launch leaving investors at a loss
PUBLIC SALE
This is the last phase in the 3-Phased sale process before a token is listed. Here the coin is made available to the public, everyone has an opportunity to purchase the coin although at a different rate than it was sold in the first two initial phases.
The coin is sold a little bit more expensive in this phase even though it is still cheap cause it is in its early stages so public investors who didn’t have opportunity to purchase in there first two phases participate in this phase. Immediately after this phase has been completed the asset undergoes final overview.
PROS OF PUBLIC SALE
- A much more larger amount of the asset is released for the public to purchase
- Everyone is allowed to participate in this phase
- The asset released in this phase is still very cheap
CONS OF PUBLIC SALE
- The asset are much more expensive in this phase than in the last two previous phases
- The assets value might never rise above the value it was sold at hence leaving buyers in a loss
3 What are the mediums used for Public/Pre/Public Sales in Cryptocurrency?
Mediums used for Public/Pre/Public sales refer to the means through which asset are being offered to investors and the public. Some of the most prominent means used include
- OFFICIAL WEBSITE
The assets official website is the most valid way of offering investors opportunity to purchase a particular asset as it was built by the official creators of the asset it always tends to have the best rates and latest updates about its asset
- EXCHANGES
Exchanges get official data from the website of so we can say the exchange is also a means for Public/Pre/Public sales of cryptocurrency
- SOCIAL MEDIA
The social media is a very powerful tool used for making an assets known as 95% of investors are in one form of social media or another. The social media as the quickest means to let the public know about an asset and how to attain it
- Research about any recent (2021) successful ICO or IEO and give detailed information about the project. (Note: BETA token is excluded).
BITCLOUT (DESO)
Source
Bitclout is an open source social/cryptocurrency blockchain where users gets their own coin called creator coin, the more a coin is purchased, the blockchain was built uniquely from scratch by developers as their is no known company behind the asset
The Bitclout has a tweet to claim your profile sort of requirement where after one has registered to gain full control of your account you have to make a tweet and as a reward one get some certain percentage of the creators coin.
On 24th of march Bitclout officially launched but on private beta which implies that the public had not yet had access to the asset, early July 2021 the asset went live on exchanges and had an initial total supply of 10.8 million Bitclout although it had 11 million coined. 275k number of coins to be mined over the next 30 years and later in the cause during the year in September 2021 the company rebranded and named changed to Decentralized Social
The Bitclout platform is somewhat like twitter, users can post images, texts and and videos and other users can like the videos repost and comment. The DESO token is currently valued at 99.71$ with an all time high of 198.84$ Four months ago June 16 2021 with a current market cap of 974,852,903.94$ and a fully diluted market cap of 1,000,421,258.85$
Create an imaginary token. Write about the project including its use case. Develop an ICO which includes Private sales (3 stages) and Public sales (1). Note that: You are expected to explain what the funds are intended to be used for, your Private sale should have 3 stages, and specify the initial supply available, and the price you are issuing the token in each stage. Also, specify the price you are issuing the token at the Public sale phase (including the supply).
My imaginary token would be called the Sure.
The Sure asset would be a new gen betting token which reward users based on accurate prediction of unpredictable conditions like sports winners or winner of election with a total supply of 15,000 and a launch price of 100$/Sure token and a total market cap of 1.5Million $ , In its initial 3 phase of sales I would proceed accordingly
- Private sale
On 15th of October A very limited number of investors most likely top companies would be invited for a sit-in private sale where I would sell a portion of the coin (1000)
at 50$/Sure token , finance ( worth 50,000$ ) gotten from this first phase of sale would be used to fund to tokens launch and cater for workforce
Private sale 2
After expenses the amount raised from the initial fundraising wasn’t enough to suffice for the launch, a different or similar set of limited number of investors will be gathered again to purchase 1000 Sure tokens, this time each token would be sold for 55$/Sure token
Private sale 3
Some more funds are required in other to purchase a sort of partnership from another company I will be partnering with for maintenance and so I would set up a 3rd private Sale with a different set of investors and a limited number of 1000 Sure token for sale at 60$ per token.
- PreSale
On 22nd of October In the second phase I would invite a limited number of investors (more in number than the private sale phase) and sale a totals number of 2000 Sure token at a price of 75$/Sure token to investors willing to purchase a total of 150,000$ would be gathered from this phase and would be used to further prepare for the tokens launch - PUBLIC SALE
On the 1st of November during the last phase the public would be notified and a public sale will kick off of the asset.
After listing the tokens value will kick off at 100$ and a circulating 8000 Sure tokens would be released for sale while the remaining 2000 Sure token would be kept to be released gradually yearly as the assets increases in worth.
USES OF Sure tokens
⁃ The Sure token would be used for in the blockchain for staking odds
⁃ The Sure token would be used to pay block validators
⁃ The Sure token can be exchanged at Sure vendors for cash
⁃ Sure tokens would be used to reward users who predict in the market correctly
6 What are the criteria required for listing a token on CoinMarketCap. Is there a criterion for listing an asset on a Centralized Exchange? If Yes, use an exchange for your explanation in response to the question.
YES THEY ARE
For the Binance platform they are multiple conditions one has to meet befor his or her token can be listed
CREDIBILITY
One has to have a solid information about his asset and a full detail of how and what the coin is aboutWEBSITE
Before listing an asset in the Binance platform one has to provide the coins website where additional data can be found.AN ACCOUNT
Before any steps can be taken on the Binance platform about listing a coin one has to have an account with a properly verified data before one can apply for coin listingSIGNATURE OF BINANCE NDA
Before Binance will agree to visit one coin submitted for listing one has to have th company’s manager sign it’s Non-Disclosure Agreement and attach it to the form while submitting application for coin listing
FUNDRAISING
The Binance native token must be the coin used during fundraisingTEAM INSPECTIONS
If the Binance platform sees fit they will perform a physical overview on the company and if team does not fit its standard or perceived something fishy listing will be canceledFORM
A proper 10 paged form will be sent to the company to be filled out any misgivings here would disqualify the company’s chances of having their coin considered for listing
Form source
CONCLUSION
Cryptocurrency investment opened up a wide range of opportunities for investors all around the world, the are cases where people have made millions from cryptocurrency investment and I believe with time to come more opportunities to invest in the cryptocurrency world would be opened and many would benefit from it.
cc: @fredquantum