Experts believe that since prices can rise and fall in the cryptocurrency market, planning a long-term strategy can help offer better rewards
Edul Patel, co-founder and CEO, Mudrex, a global cryptocurrency investment platform, talks about how cryptocurrency education should be done with fundamentals and why blockchain assures safety with FE Blockchain.
- What are the three best practices that today’s youth should follow when it comes to digital assets
Cryptocurrencies have started to emerge as a new investment class, and today’s youth are looking at crypto as a means to achieve financial freedom. But, novice investors need to understand what they are getting into to profit from investing in crypto. For this, the only way is to do thorough research before making any financial decision. Since crypto is also the world of volatility, it is always good to focus more on cryptos with solid fundamentals. It is vital to study the roadmap for any digital asset, and the team behind the project. Lastly, investors should avoid putting all eggs in one basket and not invest more than one could not afford to lose. So here, diversification plays a significant role. Starting with smaller amounts gives one the buffer to plan better in case things go south.
- How can blockchain be used to keep digital assets safe? Which are the apps consumers can use?
Security has been a major concern these days for many. Cryptocurrencies are built on a decentralized infrastructure called a blockchain which is the safest for making transactions. It uses cryptographic hashes so that each asset can be securely stored on the blockchain and tracked back while changing hands. This transparency makes the platform ideal for tracking digital assets.
- What are three tips you would like to give to people who dabble in crypto trading?
While investing is one part, trading is the other in the crypto market. Crypto trading can be tricky for novice traders. But having a proper strategy in place can help traders manage risks effectively. It is also a good idea to spread money across various digital currencies depending on thorough research. Since prices can rise and fall dramatically every minute in the crypto market, planning a long-term strategy can help offer better rewards.
- Which according to you is the country leading in the space and the Indian start-up ecosystem can pick up the best use cases?
Many countries have been trying to scale up, bringing innovations in these sectors. In terms of growth around the crypto and blockchain, the United States plays a significant role. Nearly 40% of all blockchain startups are in the US alone. With vast technical talent in India, we can also emerge as a blockchain and crypto hub by transforming the financial and other industries. We can apply blockchain technology for tracking medical data, which can be accessed across hospitals to provide better treatment on time without waiting for physical documents. Smart contracts built on the blockchain can also streamline taxation by comparing tax data with income transactions. Even though it is still early, the public and private sectors can benefit significantly from this technology.
- What are the disadvantages of blockchain?
While there are many advantages of blockchain technology, there are also some drawbacks. The prominent drawbacks of blockchain technology are scalability and energy consumption. Hope to see them resolved in the coming years with innovative startups taking birth.
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