CoinDCX’s COO Mridul Gupta is in conversation with Aabha Bakaya, senior editor & anchor, Business Today TV to guide viewers on the best approach to investing in the crypto market.
At the onset, Mridul sets the tone that Crypto is a new ecosystem and we should not confuse it with the financial one. He suggests we should learn about it first rather than investing in the upper hand and that different crypto investment strategies are needed depending on one's level of experience. Setting up a systematic investment plan is required and is a very important tool for developing the discipline needed to build long-term wealth.
Aabha carries on to discuss whether there has been a clear knee jerk reaction from investors in terms of queries, withdrawals or simply panic. Thus she asks if the nature of investing has changed, and if there is any style that is growing faster than others?
Here Mridul talks about DEFI, vertical NFTs and gaming- DEFI being a new trend in the crypto space. DEFI means decentralized finance- this is a buzz phrase that describes financial services offered on open blockchains, most notably Ethereum. Earning interest, borrowing money, lending money, purchasing insurance, trading derivatives, trading assets, and other activities are all possible with DEFI, but the process is quicker and doesn't involve any formalities or a third party. DEFI is global, peer-to-peer (meaning directly between two people, not routed through a centralized system), pseudonymous and available to everyone, much like cryptography in general.
Aabha points out that in equity markets it is said this time is just a correction, not a crash given the kind of uptick that was seen over the last few years. She asks therefore about the cryto markets- how would one assess what would make a good investment at this time?
Mridul's advice for new investors and traders is that they should invest modestly and adhere to a systematic investment plan in order to play in the market for the long term. Both traders and investors can be seen in the crypto markets. For new investors, it's a great time to learn about new things related to crypto, and since the crypto market is just getting started, investors can take this time to readjust their portfolios. In this trend, traders are observed to be continually buying and selling and frequently rebalancing their portfolios.
Aabha notes how a key takeaway is that it’s always a wise strategy to do smaller investments over a longer period of time; she asks Mridul on a closing note for advice to leave viewers with
According to Mridul, those who trade or invest in crypto are best off using sophisticated and dependable tools like CoinDCX because they limit orders and margins, stop loss limit orders, and also assist users in deploying funds and generating income that can be used as a passive source of income.
Statistics show that if prices reach low or high levels, there is a quicker market readjustment. The blockchain is currently a steady part of the crypto industry since it keeps evolving despite market crashes. Growth in the blockchain industry is a crucial indicator of growth in the crypto market.