Can you make money with ApeCoin? How can you lose money ApeCoin? More importantly, how can you protect your APE investment and retain as much as you make with Axie Infinity?
In the less than one month that ApeCoin has been around, its value has spiked by more than 1,000%. This has seen APE make several early investors who had huge sums of money to risk millionaires.
Since there are not many stories on crypto losses, many novice or beginner investors do not know that many people have also lost huge sums of money investing in ApeCoin.
The last thing you would want as a trader or investor with a relatively smaller capital is to see your investment wiped off within a short period due to the volatile nature of cryptocurrencies.
This is the primary reason why you need to understand the different ways of making money with ApeCoin in addition to the numerous ways through which you can lose all your investment. In the end, you will find resourceful information about the two as well as how to avoid potential losses.
Ways To Make Money With ApeCoin (APE)
Beginner traders should know that although investing in ApeCoin is extremely risky, APE has been one of the biggest gainers for many investors in 2022.
Below are the three ways you can make money with ApeCoin.
HODL is a popular term associated with investing in cryptocurrencies with an eye on the long term. HODL means hold on for dear life.
You can make money by buying and holding onto your ApeCoins for a longer duration.
In this case, you add up to what makes ApeCoin have a positive reserve risk.
Reserve risk results in an attractive or unattractive investment.
For an asset to be an attractive investment, investor confidence should outweigh the price of the asset.
In this case, if you buy APE with an eye on a future increase in value, it means you believe that the token is undervalued, and could trade for more than 5 to 10 times its current valuation.
Once APE rises to new price milestones, you can make huge sums of money.
A great example can be attributed to buying $1,000 worth of APE and having $100 as your selling price.
When APE opened on March 17, 2022, the price per token was $1. What this means is that investing in APE with $1,000 could have purchased 1,000 ApeCoins.
Suppose this milestone is tested in the future, your $1,000 would have matured to $100,000.
In such a scenario, you could be seeing a 9,900% return on your investment.
We would like to sound a word of caution to unsophisticated investors who feel they can throw any sum of money behind a token based on hype.
You could lose your entire APE investments within a short period. This is the primary reason why you have to conduct independent research on the pros and cons of investing in ApeCoin.
You should also dig deeper into the Bored Ape Yacht Club (BAYC) and its sister project the Mutant Ape Yacht Club (MAYC) so that you will be able to align the price of APE to the performance of these digital collectibles.
More importantly, there are reputable analysts, experts, and trading gurus you cannot ignore if you want to invest in ApeCoin.
You must do a thorough analysis of the crypto forecasting portals where they make their recommendations based on fundamental and technical analysis.
To illustrate how you can make money with ApeCoin, let us imagine you want to sell your APEs when the token reaches $100.
In such a situation, you have to scroll through several crypto forecasting portals and find one that aligns with your prediction. Aside from this, you should research why a particular analyst is making such a projection.
According to analysts at Price Prediction.net, ApeCoin could reach an average price of $103.69, a minimum price of $100.83, and a maximum price of $122.99 by the end of 2027.
The analysts believe that the ApeCoin ecosystem is relatively younger and will need time to bring forth innovative applications that could drive its price in the future.
Should this happen, you could be seeing a matured investment of around $100,000 in 2027.
Check Out: ApeCoin (APE) Price Prediction
APEs' volatile nature means that there are multiple percentage swings within a given day.
This way, depending on how experienced you are, you can make decent daily returns in the form of day trading.
Using strategies such as range trading, news-based trading, scalping, and high-frequency trading, you can make small profits from small price changes within a day.
Additionally, you can infer from technical analysis the resistance and support levels of APE to guide your investment decisions, and use breaking news related to APE to make trading decisions that result in huge gains.
Staking has many meanings in the crypto finance space.
You can stake APE by leasing your tokens to the proof-of-stake (POS) protocols to help in the verification and validation of transactions.
Additionally, you can stake APE by lending your tokens to a borrower.
ApeCoin is housed in the Ethereum ecosystem.
Ethereum has several decentralized applications and protocols such as Compound (COMP), Aave (AAVE), and MakerDAO (MKR).
These DAPPs are always in need of liquidity providers (LPs) so that they can stay ahead of the competition in the decentralized finance (DeFi) space.
You can see decent annual percentage yields from your staking activities.
Aside from staking on DAPPs, cryptocurrency exchanges that support the trading of APE such as Binance and Crypto.com provide yields in the range of 5% to 10%.
You can take advantage of the staking activities on these exchanges and arrive at decent periodical yields.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ways To Lose Money With ApeCoin (APE)
As we earlier mentioned, it is not going to be rosy at all times.
There are two sides to any investment decision and they are profits and losses.
This is the primary reason why there are bullish days and bearish seasons in the crypto market. It is not a one-way road.
Let us discuss three popular ways through which you can lose money with ApeCoin. By the end, you would learn tips on how you could keep your ApeCoins safe.
Under the ways to make money with ApeCoin, we pointed out the positives of trading and left out the negatives of trading.
You should know that trading is very risky and even the experienced have had a hard time dealing with emotional decision making which sees them lose their entire holdings within hours.
Although there are multiple percentage gains daily, there are also multiple percentage losses.
You can make a decision of ApeCoin going up and the market will turn bearish which sees APE plunges to new high lows.
In such a situation, you stand a chance of losing a lot of money.
What can you do to prevent huge losses from trading? This is the primary reason why cryptocurrency exchanges have a demo account.
This account comes with $100,000 in virtual funds.
These funds never expire and help you learn how to get accustomed to the trading of highly volatile assets such as cryptocurrencies.
You can take advantage of this resource and learn how to trade cryptocurrencies.
On the other hand, you should learn how to use several features such as take profit, stop loss, and guaranteed stop loss so that you can lock in gains and limit the amount of money you can lose on a particular trade.
One of the best forms of locking gains in long-term investments is to use the “conditional alerts” feature in many cryptocurrency exchanges.
With this feature, you can issue an alert such as “sell my holdings when APE reaches $100”.
Once this price milestone is tested, the trade will automatically close, and the matured investment will be credited to your account.
More importantly, due to the risks involved in trading APE and cryptocurrencies in general, if you are not experienced enough, you should lend money to someone well-versed in the area.
This way, you make decent gains without getting involved in the action emotionally.
Although we have pointed out all these, try and invest in ApeCoin with an amount of money you can write off bad debt.
Cyber security threats have always been a part of cryptocurrency exchanges and wallets.
In 2021, more than 20 exchanges were hacked.
According to NBC News, in six of these hacking incidents, the parties took off with more than $100 million.
Overall, hackers stole more than $4 billion, per Business Insider.
Due to cryptocurrency’s trillion-dollar economy, many people have seen a great opportunity to make millions of dollars at the expense of hopeful investors.
Crypto wallets are also targeted not only exchanges since they hold billions of coins which are held for long-term gains.
What can you do to ensure the safety of your exchange account? You have to take advantage of multi-factor authentication. Nowadays, every online account you have must be protected with two-factor authentication.
This way, a third party may gain access to one of your passcodes. Unfortunately, it is very difficult providing more than one way of being knowledgeable about a particular account.
Additionally, you can take advantage of hardware wallets or cold wallets. These wallets store cryptocurrencies offline.
Therefore, in the event of a ransomware attack or any third-party activities that occur via the internet, you should know that your ApeCoins are safe.
Across social media platforms Reddit, Facebook, Instagram, Twitter, and community channels such as Discord and Telegram, it is very easy to find asset managers.
Some of them send you referral links enticing you to take advantage of a new investment company that guarantees weekly gains.
Once you send them your hard-earned money, they take off, and never to be heard from again.
This is why the Federal Trade Commission (FTC) continues to warn people about the use of Facebook and Instagram.
Per the FTC, these social media platforms have become the go-to channels for scammers to rid off vulnerable investors.
According to a report by Chainanalysis, crypto scammers across the globe brought in $14 billion in scam money in 2021.
What can you do to avoid being vulnerable to crypto scammers? You could start by guarding yourself against any unnecessary crypto investment proposals.
Across the various social media channels, people are going to send you links but refrain from clicking on them.
Do all you can to block such people from accessing your profile and sending you unsolicited proposals.
No matter your financial situation, keep off all forms of get-rich-quick schemes that promise huge returns within a short period.
In the end, only believe in, and choose reputable cryptocurrency exchanges such as eToro, Binance, Coinbase, Crypto.com, and OKX for the trading of APE.
In addition to these, we would like to recommend MetaMask and TrustWallet as crypto wallets that can safely and securely hold your ApeCoins.
Bottom Line: Is ApeCoin (APE) Worth Investing In?
Investing in ApeCoin is worth considering but you should know it comes with risk. You do not have to invest in ApeCoin (APE) without conducting fundamental and technical analysis.
You should not invest in ApeCoin based on hype or its past performance.
Do a thorough assessment of the ApeCoin ecosystem as well as the roadmap of the entire project.
With this, you will be able to invest in APE with a lot of safety and make enormous returns from staking, investing, or trading ApeCoins.