If you are an investor, every move you make should be aimed at helping you to reap more. There are a number of instruments that you might want to consider, from stocks to properties, but the crypto coins & blockchain niche is turning out to be more lucrative. If you purchased ETH in 2017 December, the price was only US$470. Imagine the price has blasted through the roof, and now you would be selling every ETH at US$3,370. This is just one example, and we are going to dig deeper into the niche to help you understand how to reap even more.
What is the Relationship between Crypto Coins and Blockchain?
A blockchain is a distributed and decentralized public ledger used to store information about the transactions happening in the network. The term decentralized means that they do not have a central authority or control, such as central banks or credit card companies. Instead of transactions being processed by banks, the task is handled by nodes that check every transaction to confirm everything is okay and record the details in the blockchain. Good examples of blockchain networks include Bitcoin, Ethereum, Bitcoin, and Binance.
For a blockchain network to operate, it requires native currencies, which are also referred to as crypto coins. These are digital currencies that reside in the respective blockchain networks, and people use them to pay for their transactions. For example, if you want to run a transaction, such as sending funds through the Bitcoin network, you have to pay for it using the native coins, BTC.
When you acquire crypto coins, they are stored in crypto wallets, which help to facilitate safe storage and transfer. The main types of crypto wallets include hardware, desktop, cold, and hot wallets. Remember that your private keys should be kept as private as possible to avoid losing your coins.
How to Get Maximum Returns from Cryptos and Blockchain Technology
One of the methods that you should consider to optimize returns is selecting high-potential coins. These are coins that are developed professionally and have a highly aggressive team. One such option is Ethereum. It not only has a highly focused development team but is also developing progressive products that make it more desirable. For example, it came up with smart contracts, non-fungible tokens and now is shifting from proof of work (POW) to proof of stake (POS). With all of the innovations, ETH coin’s value is expected to grow and surpass that of Bitcoin in the coming years.
- Be on Time, Especially when New Coins are Being Released
When new coins are released into the market, most of them start with a low price before growing steadily to hit a peak. If you can notice good coins and buy them when the initial coin offering (ICO) is announced, the chances are that you can reap maximum returns in the coming months or years. Take the case of Bitcoin. Immediately after its release in 2009, Bitcoin was trading at far less than a dollar. However, the price grew steadily and hit a peak in 2017. To identify the coins to target, make sure to work with an agency of experts, such as hi.com.
- Buy and Hold Your Coins
When thinking of crypto coins and blockchain networks, consider them similar to other investment instruments. After buying them, you need to take ample time to allow the price to grow. For a person who bought Bitcoins after release in 2009, selling a few years later would have been profitable, but holding even longer yielded better returns. At the start of 2022, the price of BTC had shot to more than US$40,000 from less than a dollar in 2009.
As you decide to use cryptos for long-term investment, make sure to start with a comprehensive review. It would be an excellent idea to work with a professional in cryptocurrencies and blockchain niche to single out the most recommended crypto coins for long-term investment.
- Stake Your Coins
Once you have acquired your coins, you can optimize the returns by using them to earn passive income. One of the best methods for this strategy is crypto staking with hi.com. This method involves committing your coins to help confirm transactions and secure the crypto network. In return, you are rewarded with a part of the fee paid by users for the transactions they make.
The good thing about staking is that you are not selling the coins. By the close of the staking period, you unlock your coins and put them back in your wallet. Also, the process is pretty simple, and you can stake your coins immediately after buying them.
There are numerous ways and channels that you can use to optimize returns from crypto coins and blockchain technology. The options we have listed above are the best points to get started. To learn more about cryptos, send, save, earn, and convert cryptos, visit hi.com now.