A beginner's guide to crypto investing strategies
Tags: trading, nft, defi, beginners
Published: 2022-06-29 22:28:00

Hello 👋 !!!

I started studying crypto assets at the beginning of the year, and although I'm not an expert in the field yet,  I'd like to share with you a series of posts (starting with this one) fully focused on giving information to understand some concepts and investment methods with cryptocurrency.

In this post, I'm going to show you some investment possibilities that I was able to identify, highlighting some pros and cons. In the next posts, we'll delve a little more into each of these investment possibilities.

**WARNING**
***The content that will be next shared is pure informative based on my analysis and opinion. if any of the investment methods are of your interest, you should investigate them further. Let's take the meme below seriously!!!***

![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/s0htpu02qs2o2bs51dn2.png)

## Investment Types

### **Passive Income**

A passive income is one that comes from an investment made and doesn't require constant dedication, in our classic economic system, we could take as an example the income generated by a property. In cryptocurrencies, the main passive income is the interest generated by cryptos in different services.

Some of the most used platforms to generate passive income are Ledn and Blockfi.

**Advantages**

- There's less chance of asset loss compared to other investment methods.
- It isn’t required to be an expert.
- There's no need to spend large amounts of time.
- Generates higher profitability than common banks.

**Disadvantages**

- It requires longer terms (some months or years).
- It generates little return compared to other investment methods such as trading.
- Normally the platforms used for passive income handle limited and/or expensive transactions.

### **DeFi (Decentralized Finance)**

It's a technological approach that uses blockchain and cryptocurrencies to generate a new economic model (A new post will be published soon to know more about DeFi).

**Advantages**

- Compared with trading, you don't need to spend large amounts of time on it.
- It can generate higher income than passive income.
- There is less probability of investment loss compared with trading.

**Disadvantages**

- Compared with passive income there is a higher probability of investment.
- It's necessary to spend time studying the investment types in DeFi and analyzing the investment strategy.

### **Trading**

Trading consists of buying and selling listed assets (including cryptocurrencies) with high liquidity in the market (electronic and regulated). Its objective is to obtain an economic benefit when the operation generates a capital gain.

**Advantages**

- Gains can be made in the short, medium, and long term.
- Can generate high profitability.

**Disadvantages**

- Experience and study are needed to obtain profitability.
- It requires time and constant attention.
- Losses can be generated regardless of experience and study.

### **NFT (non-fungible token)**

It's a digital asset that is represented in a unique, unrepeatable and indivisible way into a blockchain. Therefore, the Non-fungible tokens aren't mutually exchangeable, while cryptocurrencies are fungible by nature.

**Advantages**

- It's not necessary to have a great experience.
- Buying a correct token can bring good profit in a short time.

**Disadvantages**

- It can be difficult to find a correct token, causing difficulties in the sale and causing a loss of investment.


### **NOTE**

- *Before starting with investments in the crypto world, it's necessary to make a deep study of the projects that concern them, as well as the type of investment.*
- *In all cases it depends on the fluctuation of the project in which you want to invest, in some cases even obtaining interest you can lose money.*


### That's all folks!!! 
## I'll wait for you in the next post