$What is an investment and how does it work in cryptocurrency? 💰

An investment is the allocation of capital with the aim of increasing it. Traditionally, people invest in stocks, real estate, or businesses. In cryptocurrency, the principle is the same: you purchase a digital asset, anticipating its price increase or earning additional income.

How are investments applied in cryptocurrency?

1. Buying and holding (HODL) – a long-term strategy. You buy Bitcoin, Ethereum, or other tokens and wait for their value to grow.

2. Staking – freezing coins in the network to support the blockchain and earn rewards.

3. DeFi protocols – investments in decentralized platforms to earn interest.

4. NFTs and metaverses – investments in digital assets and virtual worlds.

It is important to remember ⚠️

Investing in cryptocurrency is highly risky: the market is volatile, and prices can change significantly. Therefore, it is best to invest only the amount you are willing to lose, and always research the project before investing.