Make a comprehensive understanding of the crypto assets

 

Suthep Chaviwan/Feb. 5, 2022

 

As all of us know, crypto is very risky and not like conventional investing in the stock market.

Before investing in crypto, it is essential to take into consideration the types of cryptocurrencies that you want to trade and make the investment.

Financial experts said that trying to make quick money on cryptocurrency is a losing game. Yes, some investors become overnight millionaires trading, several others lost all of their entire investment

 

You are also asked to study the stable coins currency that you want to own or invest in, knowing the decentralized systems that allow for secure only payments. Normally the investors will have several wallets of different types of such currencies for knowing these digital assets.

 

Before purchasing the popular and volatile unregulated investments involving cryptocurrency and digital assets, investors have to exercise caution

 

Apart from the above precaution measure, due diligence on crypto projects and studying the crypto regulations of the country where you live and want to invest or trade is also necessary.

 

For example in Thailand, it is legal to trade cryptocurrencies with registered crypto exchanges, despite other regulations still not finalized.

 

Thailand's financial authorities do not completely ban the trade of crytocurrencies but try to regulate the use of cryptocurrencies for fear their use poses a threat to the country's financial sector. However, crypto investors have the hope that the regulators will have lighter regulations and lower taxes such as scrapping the proposed 15% crypto capital gains tax following a public backlash.

Other questions that you have to ask yourselves before being involved more with these businesses are included "Do you want to invest only in the digital assets; the bitcoin and the altercoins or also trading the stablecoins that is pegged to a "stable" reserve asset like the U.S. dollar or gold.

 

We know that stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin, but stablecoin, sometimes is not stable like its name, but move around on the same online up and down together,

Among the best stablecoins, but always swing and fluctuated are listed below:

Tether (USDT)

Dai (DAI)

Binance USD (BUSD)

TrueUSD (TUSD)

USD Coin (USDC)

TerraUSD (UST)

Digix Gold Token (DGX)

When you want to invest and trade any cryptocurrencies, you must study the pros and cons of them, try to make comprehension of white papers of the cryptocurrencies that you want to invest in.

A whitepaper is a crucial document that a potential investor should read, making the understanding as it throws light on the major aspects of a crypto project, its purpose, and knowing the technology behind it.

It is necessary to have complete knowledge and regular updates about cryptocurrency before and after investing in it.

In summary, before investing, all investors must realize that investments related to cryptocurrencies and digital assets are the top threat to themselves. They may prepare to gain a huge profit, becoming a millionaire overnight, but must also prepare to lose all or parts of their investment overnight.

Suthep Chaviwan. Feb. 5, 2022

*Warnings: Financial experts said that trying to make quick money on cryptocurrency is a losing game. Yes, some investors become overnight millionaires trading, several others lost all of their entire investment. Vineet Nanda, Co-Founder of Globalise said that "Invest only what you are willing to lose,"