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SpaceCrew Insights: How to earn on crypto investments/IDO tips

It’s been a while since the last update in the ‘SpaceCrew Insights’ series and we’re here to rectify this state of affairs. Have you always wanted to plunge deep into the topic of blockchain to start earning through crypto investments but haven’t quite figured out how to start? Don’t worry, we’ll give you some tips on how to kick off.
Please note, the article is not financial advice, but a personal opinion.    

The strategy for successful investments

In this article, we consider several options for making money on cryptocurrency investments. Read through this carefully and who knows, maybe you'll become the next big shark in the crypto sea! Let’s start by describing two approaches from the SpaceSwap Starter management team:

1.Trading. The essence of trading is buying coins on a CEX or DEX and then selling them at a higher price. There are several types of trading. In general, this option requires a significant amount of time. Some folks say that it is a real full-time job, especially if you choose scalping or day trading. 

One should keep in mind that trading requires daily analysis of coins, charts, the market, etc. It’s a long and methodological process and the most suitable type of trading depends on a person’s psychological portrait. Here are some basic tips for novice traders:

  • start trading with small amounts
  • try different trading options to find your preferred kind
  • keep transaction statistics
  • study literature, useful resources and graphs

2.Public Sales (token sales). Another option is to invest in projects that are conducting public token sales. These token sales can take place on various DeFi and CeFi platforms. In most cases, before being able to invest, you need to fulfill certain conditions - these could be to stake the project tokens (for example, on the SpaceSwap Starter platform), there may be a lottery draw for those who complete some steps (e.g. passing KYC, subscribing to social networks, storing tokens on the site, trading a specified volume for a set period, etc.).

The number of coins allocated by projects for public sales is limited, that is why participants can earn good profits here since often, listing projects can make Xs to a mutual price. Here’s a list of tips on how to choose a project to invest in and what to look for:

  • Observe the project - the problem being solved / the direction/product relevancy (for example, at one time, there was a trend for ecosystems, replaced by NFT and now we have the metaverse trend).
  • Pay attention to other funds invested in the project, if any.
  • Find out who the team is behind the project, whether it is anonymous or not, what experience they have, whether they have worked in blockchain projects before, etc.
  • Take a close look at the roadmap, see what has already been delivered, plan for the future development of the project.
  • Study the Whitepaper, how the token is used in the project.
  • Study the tokenomics, economic model, etc.

More useful tips to add

There are some universal rules that everyone should stick to, whether or not you are a crypto investor, trader, or something else. Follow these golden rules to make your investments safer: 

  1. Invest only as much as you are ready to lose. The cryptocurrency market is very volatile and not every project is capable of surviving a market during a crisis.
  2. Do not invest all your capital in one project. Divide your investments into several parts (for example, 10 parts) and only give one part to a single project.
  3. Plan what profit you expect to get from each project. Develop your strategy, for example, you might sell your first unlock tokens, and leave the rest for long-term profits. Or you might leave the entire amount for long-term investment until the final product is developed).
  4. Do not expect quick profits. Very often, investments are exact things that require much time before they pay off. Sometimes it takes a full year to get a good return.

That’s pretty much it for this installment. We hope this guide was useful to you and made you feel more secure about future investments. We wish you good luck and great profits! 

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