Weekly Engagement | Importance of Steemit in my Life and When to Invest in a cryptocurrency? | 5% to pak-charity
Hello everyone!
I was really confused about participating in this contest. Actually, I was more confused about the topic. I read everyone’s stories about the importance of steemit in their lives. Generally, it has helped a lot of people financially and helped them to be independent at a young age and it is also a big support for the retired people. I will try to explain how important steemit in my life is.
What is Steemit and how I got to know about it?
Steemit is a blockchain-based social media and blogging site. Here people are rewarded for creating and curating content.*I got to know about it in 2018 through a Facebook group. I found it interesting and started writing here.
Role steemit plays in my Life
Let me tell you about me first. Few people already know but still, this background story will back up the current subject.I have a bachelor’s degree in Computer Science. I graduated in 2014 but didn't pursue my career. I am sort of a home buddy, I loved my field of studies, but I didn't have the heart to go out and earn for myself. I spent 4 years away from my home just to pursue higher studies in a good reputable institution. But when I graduated, I realized that I just wanted to go back home then and didn't want to live by myself anymore in a distant city. I had no financial issues or pressure from home as I belong to a financially good family. So I just packed my bags and arrived back home.
I thought to do freelance work to stay in touch with my field. But soon, I realized that it was really hard to find online work. I did it on and off, but I didn't enjoy it. I wanted something permanent.
A year later, I got married. Alhamdulillah, again I had no financial problems as my husband's job was enough for us plus we move a lot so it was not possible for me to find a job every few months or years anyways. For a while, I gave up on any kind of job whether remote or office, and decided to just enjoy life.
A few months later, I started feeling depressed that I wasn't doing anything productive in my life. I wanted to do something just for the sanity of my mind. I was always told from childhood till university that I was a brilliant student. I am not boasting here, just stating the facts. I was always a topper in English Creative writing even in university. I was told by a professor that I would make a decent developer if I pursue my career. These thoughts used to spoil my mood, thinking that I have wasted all my skills.
And then, in all the chaos, I got to know about steemit…I started writing on steemit and almost immediately found my niche. I used to write for steemstem in 2018. I combined my two passions (writing and computer science) and started creating content here. I started it as a hobby. I felt encouraged when I got rewards. You would not believe, I didn't cash anything in the beginning even though rates were really high at that time. My whole focus was just to create content and rewards fuelled my motivation.
Then rates got so low, people left, communities disbanded. I also left. I didn't touch my wallet even then. lol Then, earlier this year, I got to know that steemit is again trending. I rejoined and powered up all my previous earnings. It wasn’t much though. This time, I am enjoying it more than ever because I found this community of Pakistan which is like a home to me here. I still enjoy writing here.
Over the years, my family has grown. I have two kids now. I want to spend my earnings on my family and my home. For now, I am saving everything I earn through steemit to fulfill some big dreams which were taking a long time to come true but steemit has given me hope that they will be fulfilled soon. I am also able to help the needy more than ever just because of steemit.
That's my story and the importance of steemit in my life. I started it as more of a hobby and to soothe my sanity that I can do something productive in life. The bonus point is the financial aspect which is helping me achieve my dreams.
Pardon me, if I bored you down with my ramblings but this is my story.
When to invest in a Crypto currency?
Making investments in a cryptocurrency is a very risky business. Analysts always warn to do proper research before the investment because cryptocurrencies have a very volatile nature. The rates rise quickly and drop down even faster. There are some rules that should be kept in mind before investing.
1- Read White Paper
Always read the white paper of the cryptocurrency you want to invest in. All the details are mentioned there that will help you decide whether you want to invest in the particular currency or not.
2- Blockchain Technology
Before making the investment, read and understand blockchain. One should know about the technology to make sound decisions when required.
3- Online Communities
Joining online communities related to crypto is a good idea. As these are very fast-paced so one can stay in touch with what's going on in the crypto world.
4- Monitor trends and Invest timely
Although, it's common sense that one should invest in a cryptocurrency when it is following a downtrend. But it is tricky to analyze the trends of a cryptocurrency considering its volatile nature. However, according to the observation cryptocurrency generally follows similar patterns. So it is important to monitor the trends and make the investment timely.
5- How to deal with volatility?
There is a crypto trading method called Dollar Cost Averaging which helps to cope with volatility.
According to this method, you should not invest all the money at once and at the same rate. Instead, you should divide it into portions and invest at different times and preferably at regular intervals. Like, if you want to invest 10 lac pkr then invest 1lac daily over the 10 days’ time period. This way, you will always get more profit than if you would have invested all the money at once.
6- Golden Cross / Death Cross
Crypto charts help a lot in deciding crypto trading.
Golden Cross tells us about the long-term bullish trend (uptrend) and the Death cross tells us about the long-term bearish trend (downtrend).
Now how to identify these trends?
The **golden cross** occurs when a short-term(50 days) moving average of the crypto prices crosses over a major long-term(200 days) moving average to the upside and is interpreted by analysts and traders as signaling a definitive upward turn in a market. Basically, the short-term average trends up faster than the long-term average, until they cross.source
Selling increases when the golden cross occurs.
The **death cross** occurs when the short-term average trends down and crosses the long-term average, basically going in the opposite direction of the golden cross.source
One should invest after the death cross as the market generally goes down after that.
7- RSI(Relative Strength Index) Divergence
It happens when the price moves in the opposite direction from downtrend to uptrend or from uptrend to downtrend. This basically helps point out before time where is the market going. It is sort of an early warning. It shows the change in the momentum of the price before you can see it actually changing.
When the upward momentum slows down that means a downtrend is coming soon hence the signal to buy.
One should know all these things and be able to read the charts to make good decisions. These methods cannot be trusted blindly but they generally work.