Cryptocurrencies have emerged as a unique asset class with a potential to offer higher rewards than any other traditional financial assets out there. Thanks to growing adoption and the decentralized nature of these assets, their valuation is directly linked to market forces which makes them volatile. The volatility associated with these assets, in turn makes investments in them not only profitable, but also considerably risky ventures.
As a result, profitable investments in the crypto sector requires users to make well-informed, calculated decisions. If not careful, they will end up incurring huge losses to such an extent that they may even be forced to write off their investments. In the recent episode of ShuttleCast, a community outreach initiative by the founder and CEO of ShuttleOne, Zhuang spoke about his experience as a crypto miner, investor and ultimately as a creator of one of the promising blockchain ecosystems in the crypto industry. In addition to sharing his experience, Zhuang also offered insights into the best practices to be followed to become a successful crypto investor.
Spend Time to Learn Crypto
Investing in crypto assets is not without its risks, but it could bring in the riches when done right. Zhuang believes that, as a crypto investor one should be disciplined and rely on their own research and understanding while making investment decisions.
According to Zhuang, there is so much noise in the crypto sector that people may get lost in the process and end up making all the wrong moves. The rapidly evolving industry always has something new to offer, but that doesn’t necessarily mean that they are good investment opportunities. Each crypto community member has their own opinion on
different assets and blindly following them instead of understanding the underlying particulars could have devastating consequences.
There are many ways to understand a particular cryptocurrency. Among them, the best option is to actively participate in the ecosystem to gain first hand knowledge before doubling down on the investment. Further, he also advises the community to avoid indulging in reactionary decisions or FOMO driven by market movement or crypto influencers.
Previously, in another episode of ShuttleCast Zhuang had provided a list of things one should consider while evaluating crypto tokens. The list includes:
- A thorough understanding on the project to realize whether it is offering any real value to the community
- Evaluation of the projects business model
- Utility of the token within the project to gauge its demand
- Tokenomics to understand the token mint/burn dynamics and its effect on supply and valuation
Spending time to understand what you are putting money in give you the peace of mind when price volatility go the opposite direction. Whatever you cannot learn with time, you will have to pay for it.
Don’t become a Financial Advisor
With ShuttleCast, Zhuang aims to share his experience and learnings with the crypto community. He opens up about his journey through the crypto industry by stating that he started mining Bitcoin in as early as 2013 followed by DOGE in 2014. He gained in-depth understanding about the technology and the industry by referring to whatever limited resources available at that time, which convinced him about its true potential. The same process also made him appreciate Ethereum and served as an encouragement to not only invest in it but also advise others to do the same.
While he wasn’t wrong about this inference, Zhuang mentions that his advice to family and friends to invest in cryptocurrencies was a bad move on his part. With the prolonged crypto winter that soon followed, plummeting values of these assets had everyone blaming him. While the situation was distressing, it was a learning experience which ultimately led him to create ShuttleOne. All the knowledge gathered, along with the accumulated crypto assets helped him start the venture with the intention of providing solutions that make handling crypto assets easier for the community. After having provided blockchain and crypto solutions to individuals and enterprises, the limitations of existing DeFi solutions due to siloed structures of protocols drove ShuttleOne to create the multichain infrastructure ecosystem, Metachain.
Become a Builder – Get Involved in Products and Ecosystems
From his experience, Zhuang infers that getting involved in a project or a protocol is the best approach to understand and evaluate the ecosystem. It not only gives the necessary knowledge but also enables the user to gauge the potential of associated crypto assets to appreciate over time. Meanwhile, the growing adoption of blockchain and Web3 technologies across industries and the rising use cases of these technologies also open avenues for innovation in the sector.
Those who opt to innovate by becoming a builder of new-age solutions will not only add value to the industry but also for themselves. To encourage builders, ShuttleOne provides various tools and resources which can be readily adopted to create innovative products and solutions for the industry. In this regard, the ShuttleOne Metachain allows builders to create chain-agnostic dApps that can seamlessly work across different blockchains without the need for multiple versions on each protocol. The cross-chain communication and transfer of assets is handled by ShuttleOne’s first of its kind, two-way multichain Metabridge. The transactions across supported protocols and payment of necessary network fees are facilitated by ShuttleOne ecosystem’s universal multi-chain $SZO utility token.
The potential use cases of Metachain are already established by ShuttleOne. The first of many Metachain products is the cross-chain crypto arbitrage solution which is scheduled for an official launch soon.
Watch the third episode of ShuttleCast at YouTube
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