Making money in crypto is not always an easy task. Especially during bear markets it becomes even more nerve wracking for newbies to stay focused. One of the ways to make money advertised by many so-called "influencers" in the industry is through the promotion of tokens that are basically pump and dump schemes. We all have fallen for that. We buy tokens in the hope of getting in early and then dumping them to others. Influencers, venture capitalists (VCs), project insiders have made a favorite past time of it. They buy early and cheap into a project and then dump the tokens to retail and their followers.
There are a number of other, better strategies, that will improve your knowledge about crypto and set you for longterm success.
Where should you invest your time during the bear market?
1. DYOR - Do your own research.
Do your own research (DYOR) into the projects you want to invest in. There is no need to trust influencers eager to shill you different coins. Sit down, read the whitepaper, read about the aspects that the project aims to innovate, research the track record of the team behind it, and you will have a better understanding of the risks and benefits of investing in it. The more whitepapers you read, the more research reports you analyse, the more diligence (DD) you do, the less chance you'll have to fall for crypto scams. Learn to evaluate risks and rewards and you will be ahead of the curve.
2. Learn to utilize DeFi.
Centralized Crypto platforms / exchanges like Binance or Coinbase are the easiest on-ramps to get into crypto when you are a newbie. Most new protocols when released are not listed for trading in the top exchanges but you can buy their tokens through DeFi. That way you will have a head start in the market and shoot for better gains. You can use DeFi to swap, stake and farm tokens. You can also use it to test new protocols. Sometimes, by testing and interacting with protocols you might be eligible for their token airdrop when they decide to launch one. Be alert though, as lots of projects, tokens, and protocols are outright scams. BSC has been notorious for the high number of scam coins and rug pulls.
If you are on Hive and using Leofinance, then you can start your DeFi journey through CubFinance.
3. Networking
There's a saying I read somewhere and always stuck with me "Your network is your networth". If there is a skill that you need to always focus on, this is the one. Investing time and effort to meet the right people will take you a long way in crypto. You will be able to get insider information and solid alpha. Crypto is a game of information. If you are friends with insiders who will inform you in advance about a new interesting protocol launching or new partnerships that existing projects are about to sign that will pump their token price then you will be well positioned to perform better than most.
In the case of Hive, the various discord channels of different projects are a good place to start hanging around and meet people. Another amazing place that can help with your network is Leofinance Threads, a Twitter-like microblogging platform where many content creators from Leofinance and other Hive communities hang out and post daily.
4. Stay in the loop
Crypto is affected by global events and its behavior correlates with global market behaviors. Staying informed is crucial. You will need to read all about the latest developments, trends, and narratives in tech and finance. This will give you an edge against your competition. For example, right now AI is a major tech trend that will spillover into crypto. This trend will shape the narrative on how projects are developed and launched.
A good place to start reading about the latest crypto related global trends is Leofinance, Hive's foremost L2 long-form blogging platform about crypto and finance.
Main image made with Canva. Dividers from Leofinance.io
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