Can you make money with Quant (QNT) token? Importantly, can you lose money if you invest in QNT tokens?
The short answer to both questions is YES. It is possible to make money when you invest in Quant token. In fact, Quant has already made most of its earliest investors who HODLed the Ethereum token incredibly rich today. However, the contrary is also true as it is equally possible to lose money when you invest in Quant. And since the token has been around for more than 3 years, it is likely that more speculative investors and traders have lost money investing in QNT than they would care to admit.
So, where is the balance? How can you maximize the possibility of making money with Quant tokens while reducing or eliminating the losses to this investment?
Better yet, how do you ensure that you keep as much you earn when investing in Quant tokens?
We will be addressing all these questions in this Quant investment guide that tells you of the most common ways through which you make or lose money with QNT. We will also touch on the steps you can take to minimize the incidences of losing money invested in Quant. These could also be applied by anyone looking to keep as much as they earn from their QNT investments.
Ways To Make Money In Quant (QNT) Token
There are countless ways of making money with Quant tokens and most other digital assets. But in this guide, we will be focusing on the three most common and most practical for both highly experienced and beginner crypto investors. These include:
Buy and hold
In the crypto world, Buy and hold is another term for investing. And as the name suggests, it involves buying Quant tokens today and holding onto them for years as you wait for their value to rise. This makes it one of the easiest and most beginner-friendly methods of making money with Quant Token or any other cryptocurrency. You do not need experience to start investing/HODLing crypto - just enough understanding of the crypto projects goals and the conviction that its prices will perpetually rise.
But just how much money can you make investing in Quant tokens? Well, if you invested $1000 when the altcoin launched in August 2018, trading for $0.27, you would have received 3700 QNT tokens. At its peak price in September 2021, when one altcoin was selling at $428, you would have earned $1.585 Million. Similarly, seeing that QNT’s value moved up 16X in the last 12 months, you would have made $16,000 from a $1000 in early Jan 2021.
Trading is an equally profitable way of making money with Quant tokens. It is a short term investing strategy that involves buying the QNT tokens and holding on to them for the shortest time possible as you wait for their value to rise.
In most instances, how long you hold on to the tokens is largely dependent on your trading strategy. Day traders will hold on to a trade for seconds to a few hours, trend traders will hold on to a trade for a few days to a few weeks, swing traders will hold it for months.
Unlike buying and holding, however, trading crypto is more complicated and even more capital intensive. Importantly, it calls for rich trading experience and access to advanced market research, analysis, and trading tools.
Staking involves locking your Quant tokens in one of the investing dApps in the DeFi ecosystem. They, in turn, lend these tokens securely to other investors and traders while charging them interest. A portion of this income is then passed over to you in the form of staking rewards. Since Quant is a blockchain-less network, you will have to stake QNT tokens with third-party staking platforms - majorly dApps and digital wallets like Metamask that support staking.
The best thing about staking is that it allows you to earn doubly from your Quant investment. Look at it this way, even when your funds are locked away in a third-party staking platform and earning interest, their value is still appreciating.
Check Out: Could Quant Be A Millionaire-Maker Coin?
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 Quant (QNT) Token
We have mentioned hereinabove that just as it is easy to make money investing in QNT, it is equally easy to lose either your invested capital, profit or both when investing in Quant. In this section, we expound on the three most common ways through which investors have lost money in the past and how you can avoid being part of this dim statistic.
The most common way of losing money with Quant tokens, and virtually any other cryptocurrency, is through reckless trading. In this case, reckless trading refers to trading without or with a weak strategy, trading without experience, taking up too much leverage, not investing in advanced analysis and trading tools, not managing trade risks, and not eliminating emotional bias out of the trade.
How to avoid losing money when trading quant: The first and most important step to ensuring that you make money when trading and keep your losses at a minimum is by gaining experience. Plenty of trading platforms out here will provide you with a free demo account with unlimited virtual funds that you can use to learn how to trade as well as how to create and perfect a strategy. You also need to make use of the different risk management tools provided by your trading platform and avoid leveraged trades.
In 2021, Chainalysis reports that hackers and scammers made away with more than $14 Billion of crypto investor funds. These were drained from crypto exchange vaults, personal hot wallets, and finance dApps whose security systems hackers had breached.
How to avoid losing money invested in Quant tokens to hackers: For starters, there is little you can do to prevent hackers from stealing your Quant tokens stored in a crypto exchange if they breach that platform’s security. The only recourse to this is to avoid keeping your funds in online exchanges. Hacks to your personal wallet can, however, be avoided by using a strong and unique password. Similarly, we recommend that you invest in a reliable hardware wallet that stores the private keys for your Quant tokens offline.
Don't Miss: Is Quant (QNT) Token Safe?
The 2021 crypto crime reports by both Chainalysis and CipherTrace indicated that crypto scams, especially DeFi related scams are on the rise. The most common scams today include rug pulls, pump and dump schemes, Ponzi and pyramid schemes, phishing via fake social promotions, imposter websites, and malicious emails, and other forms of market manipulation.
How to avoid losing your Quant token investment to scammers: First, understand that scammers appeal to your fear and greed emotions. They will either lure you into fake investments with the promise of above-average returns or trick you into surrendering your wallet/exchange account credentials through malicious links sent via social media messaging or email.
Conclusion: Should You Invest In Quant (QNT) Token In 2022?
Yes, because it has proven to be a relatively safe and highly profitable investment. You may also consider investing in Quant token because it has a massive potential to continue growing its price over the long term. Even more important, and as implied in this QNT token investment guide, there are equally multiple ways through which most of these investment risks can be avoided or managed.