With the current economic and geopolitical context, Bitcoin and cryptocurrencies are attracting more and more investors.
Experienced investors who are open to new perspectives as well as novice investors.
The crisis in Canada and the conflict between Russia and Ukraine have revealed to the world the usefulness of cryptocurrency and more particularly of decentralized platforms.
In recent weeks, investments in Bitcoin and Tether (USDT), a stablecoin that replicates the price of the dollar, have exploded.
The Canadian government froze bank accounts and Canadians realized that they had no control over their savings and that they were not masters of their savings.
For their part, the Russians see Putin threatening to recover 170 billion in savings to finance the war.
The Russians then rushed to invest in Bitcoin to prevent their savings from being stolen from them.
This also helps to fight against the devaluation of the country's currency. Especially when we see that the Ruble (Russian currency) has been halved in recent weeks.
Hugues Trijasse, better known as 'Frenchstartupper' on social networks, gives us 10 tips for getting started in cryptocurrencies.
His community continues to grow day by day. More and more people are interested in investing in cryptos.
Hugues has been investing for several years and he shares his advice and investments on his networks.
Today, he gives us his 10 Reasons to invest in crypto and in particular Bitcoin.
Train before starting
It is essential to train before starting. The field of cryptocurrencies and web 3.0, more broadly, is a vast world.
It is therefore essential to learn and understand the environment before starting.
Getting information, understanding the ecosystem, the issues and what we do will allow you to avoid 80% of errors and fall into the 'scams' spread by scammers.
To train you, you can find information on several media:
- Blogs like fr
- Social networks, like the Frenchstartupper account.
- Youtube, podcasts, interviews...
You don't need to be an expert either because it is practically impossible to master this environment 100% because it is so complex and diverse.
Diversify your investments
Today traditional investments are no longer profitable and even cause money to be lost.
Take the Livret A which has just been raised to 1% yield in 2022 (unlike 0.5% before).
With inflation above 1,5%, your purchasing power will be lower at the end of the year if you leave your money in these mediums.
The idea is not to put all your eggs in one basket, but crypto assets can allow you to find alternatives and more profitable investments (3-5%) with low risk.
Web 3.0: looking to the future
The web 3.0 carried by the blockchain will revolutionize our future. By way of comparison, we could go back to 2000 with the arrival of the Internet.
Decentralized technology is revolutionizing several sectors around the world, including finance.
Cryptocurrencies are turning the economy upside down. We can see that they become a safe haven in times of crisis and war.
People understood that their savings, currently, were held by banks and controlled by governments.
Cryptocurrencies being decentralized assets, allow no public or private entity to have control over them.
This is also why the purchase of Bitcoin exploded at the start of 2022 in view of the global economic and political climate.
Investing in the new economy
Investing in cryptocurrencies is like investing in companies on the stock market.
You will allow projects to be financed and developed.
In exchange for your cash contribution, tokens will be allocated to you.
A token = a token of a crypto.
Investing your savings in certain projects therefore amounts to taking part in the project in which you believe and helping them to develop. This is also why we can make very good capital gains on certain projects.
It is the democratization of business investment for all.
Make capital gains
The crypto market is very attractive because it is famous for releasing unique gains. in 2022, investments in Bitcoin returned +63% and those in Ethereum returned +400%.
Astronomical performance and very attractive.
Obviously, you have to be very careful and vigilant because the cryptocurrency market can also turn around violently and you can lose 30% in 24 hours, as has happened a few times.
Nevertheless, investing on a regular and scheduled basis can be a good option to start and diversify your savings.
This is called DCA (Dollar Cost Averaging). This technique aims to protect against market volatility. It allows you to free up time, to detach yourself from the stress of the markets and to smooth your investments.
No market regulation
There are no laws that disturb the course and the economy of the market. It's a good as well as a bad thing because there are obviously a lot of scams.
That's why you have to be careful and well-informed.
Each cryptocurrency has its tokenomics. The number of tokens is predefined and this is anchored in the code. It cannot be changed afterwards.
Cryptos are therefore practically not exposed to inflation because it is impossible to produce more than what was decided at the start. There is no famous 'money printing'.
Some tokens are even deflationary. That is to say that a certain quantity of tokens is "burned" according to what had been decided.
The future of payments
More and more businesses are accepting payment in cryptocurrency.
There are no fees, some cards offer cashback, purchasing power is clearly increasing on crypto payments.
Paying without an intermediary (bank, broker, etc.) reduces costs to a minimum.
The future safe haven?
Will Bitcoin be the future global safe haven like gold has been and still is today?
Impossible to predict today, but given the resistance of prices to events, the strength of the currency, decentralization and web 3.0 which is arriving at high speed, it is not impossible.
Follow Hugues 'Frenchstartupper' Trijasse on social networks.
Frenchstartupper shares news, events, advice, answers your questions and organizes events around these investments.
It makes it easier to access this world that is still scary and has some barriers to entry.
Every day he shares a tip, he also offers a free weekly newsletter that can be read in 5 minutes to have a summary of information while progressing in the field of cryptos.