How to invest in crypto can be explained under different concepts. Investment on its own means different things under different circumstances.
Nevertheless it should be emphasized that investing with money is an integral part of investment. You can also invest your time.
In general, investing financial resources is the most widely known type of investment.
Before now bonds, treasury bills, real estate, mutual funds, stocks, gold among others are the common type of investment but there is a change which is cryptocurrency.
Cryptocurrency as a form of investment
Cryptocurrency was introduced as an alternative to fiat.
As contained in the bitcoin whitepaper, “what is needed is an electronic payment system based on cryptogra[hic proof instead of trust allowing two willing parties to transact directly with each other without the need for a trusted third party”
From the above excerpt, it could be denoted that bitcoin was created to serve as a medium of exchange.
It was launched to eliminate third parties and enhance seamless international transactions.
What we have today is not only a medium of exchange but an investment opportunity.
How does bitcoin become an investment option?
What is happening to bitcoin is the same as what happened to gold and silver.
Gold and silver were once used as a medium of exchange but today, we have them as a means of investment.
What has changed?
Nothing changed. Both bitcoin and gold are also fulfilling their function as money which is as a store of value.
Fiat has failed in this aspect due to its unlimited supply and being prone to inflation which makes it not suitable for long term store of value.
How to invest in crypto
There are two different ways to invest in cryptocurrency.
Staking
This is the act of keeping your crypto assets for a period of time for a return. Staking does not relate with increase in price but receiving a return in terms of extra cryptocurrency.
Currently Kumo offers 3 kinds of staking options which allows you to stake your BUSD and earn interest on a monthly basis.
You can stake as low as $5.
Buy low, sell high
This is another option where you buy crypto and wait till the value increases.
For instance if you buy 1 bitcoin at $20,000 you can sell when 1 bitcoin hits $30,000. That is a 50% return on investment.
This is so simple but if you want to invest for short period of time you should do your own research.
Also, there are different strategies such as Dollar Cost Averaging, using fear and greed index.
The good news is that both investment options are available on kumo wallet.
You can easily fund your wallet with naira, buy any cryptocurrency of your choice, sell your cryptocurrency and receive naira in your bank account without stress.
About Kumo
Kumo, registered as Kumo Technologies Inc in Delaware, U.S. is a fiat and crypto social payment app which allows users to exchange fiat (NGN) to crypto, save and earn interest in dollar with as low as $5, utility payment such as DSTV subscription, airtime, data among others.
Kumo wallet is your all-in-one social payment app for seamless payment solutions.
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