The main challenges of crypto investing and how to overcome them

[ad_1]

Financial investments are the most lucrative way to increase income, but they are not without risks. Until recently, term deposits or savings accounts were the options of choice, but lately alternatives such as crypto coins (Bitcoin, Ethereum) have been considered. Their popularity is proven by the size of their market, which currently stands at $ 3 trillion, according to CoinGecko.

Despite this, the crypto market is more volatile than the traditional stock market. This year’s May correction is a clear example, as investors suffered total losses of $ 830 billion, as the Economic Times shows. Even though crypto has become mainstream, enthusiasts and retail investors alike lack a solid knowledge base when it comes to this new industry. Since this is a free market for all, newcomers face many challenges. Iustina Faraon, CEO and Co-Founder of Coreto, the premier reputation-based social platform for crypto communities, provides an overview of investment risks and how to deal with them:

When investing in stocks, you can work with a certified professional broker, who is very familiar with the industry and can advise you, whereas in the crypto market investors usually have to do this on their own.

Although many have started trading since 2017, when cryptocurrencies, Bitcoin, and blockchain became well known and managed to make significant sums in a short period of time, they are not the majority.

Those without training made their bets on the advice of others, learning important lessons at their own expense on how not to.

More rigorous investors, who devote time to online research, suffer from a lack of resources. There are many groups on social media or platforms such as Telegram, Discord, Reddit, Twitter, specialized blogs and forums, but the information is not centralized and it creates confusion. There is a constant need to research, examine market sentiment, recent and future events, and anything that might influence the value of coins. Not everyone has limited knowledge on the subject and cannot rely on a trustworthy platform for all due diligence.

Since 2017, more and more influencers have emerged in the crypto space. During the running of the bulls, when everything was going well, they would promote other projects, with or without being paid by the founders. When the bear market started in 2018, the majority of them were gone, leaving behind people who lost large sums because they listened to them. In 2020, more crypto influencers joined, following the same pattern: lots of noise but little knowledge.

The content shared by the influencers was distributed on different platforms, including Twitter, which facilitates rapid interaction with the community; Telegram / Discord, preferred for direct discussions; their own blog or Medium profile, which may be under their control; private groups that monetize buy / sell signals and marketing partnerships that increase their visibility. In this context, some people have taken on an influencer role, making false predictions. Either they were paid to mislead, or they ventured to place losing bets because they did not have enough information. In both cases, they then erased their tracks online. It still happens to this day.

To make the investment profitable, it is important that all users use the same information superhighway at the same time. The whole process can be a very difficult, lengthy and frustrating process, especially if the person involved has a low appetite for risk.

Iustina says: “After all, the difference between traders is in their behavior during the bear market, when confidence levels are low and prices are falling, and those who master the technique can increase their portfolios. When the trend is up and the crypto value goes up, it’s an easy win. The main thing you need to do is keep track of your winners and know when to withdraw the money from the table.

“While institutional investors and experienced traders can use all kinds of tools and analysts, retail investors cannot access professional advice. This was our main motivation to launch Coreto, a reputation-based platform for the blockchain industry. In this way, influencers and marketers can prove their knowledge and pay more attention to their analytics and recommendations, as users can track their performance.

When their reputation score increases, they become the analyst team and retail investor researchers. Coreto contributes significantly during times of bull run and becomes the primary source of information on the bear market, establishing a healthier ecosystem.

The solution: Bandstand

The platform has just launched a new module called ‘Articles’, which offers the tools to create content full of advice and opinions on the industry. Until now, users could only issue price predictions based on TA (Trading Analysis), where you can analyze various technical markers, fully owning their opinions through a method available only on Coreto, called SOOP ( Staking Of Opinion Pool). From now on, they will add the FA (Fundamental Analysis) method to this tool, which will allow users to conduct more in-depth research to publish news, editorials and tutorials. Thus, a possible investment can be analyzed from several angles, depending on the idea behind the project, the vision, the demand, the potential, the experience of the team, partners and funders, etc. .

Once the articles are ready, the community / readers will be able to interact with them (thanks to features like agree / disagree, time spent on the article, number of reads, etc.), and this will add trust points to the profile of the creator, increase the score, reputation and audience. Soon after, as algorithms develop, content creators will be able to recommend to buy or not to buy, and after that time and market will determine the accuracy of the analysis. and recommendations.

“This module, one of many designed for creators of crypto content, is intended to help them showcase their knowledge of the industry. Gradually, Coreto will become the primary means of creating and monetizing content, ”adds Iustina.

The platform is currently in the Alpha stage and can only be tested / used by registering at reserve.coreto.io. Its future development will also include:

The implementation of gamification strategies to promote recurring activities and interactions with the platform;

The launch of the Open Beta version in the first part of 2022;

The launch of a referencing module;

Constant adjustment of algorithms;

User interface / UX improvements;

A new module for crypto projects (Project Page Module), where all members’ content will be centralized, easy to access and digest. During this time, projects will be able to access special tools designed to help creators promote their products.

[ad_2]