MineBest CEO Eyal Avramovich has been involved with crypto since 2015, and has some valuable knowledge to share with those about to start their adventure with digital currencies.
After years of disbelief, cryptocurrencies are finally entering the mainstream with rapidly growing adoption. But many people still wonder how to join this innovative world.
There are many reasons why people want to start their journey in the world of cryptocurrencies. Some are encouraged by the possibility to hedge their wealth against the unstable future of the current financial system. Others want to follow the ever-developing market for the advantages that blockchain technology brings. And of course, some would like to make some cash and build their fortune upon it.
Regardless of the reason, everyone needs to start somewhere to build the solid foundation necessary in this quickly evolving industry.
That’s why we have reached out to Eyal Avramovich, who has been involved with cryptocurrencies for a considerable amount of time.
He has built MineBest, one of the most dynamic companies in the crypto mining industry.
Headquartered in Warsaw, Poland, it operates in the international arena, constantly expanding its scope of influence.
Information before making decisions
According to Eyal Avramovich, the first and most important step is informing yourself. “It is crucial to take your time while doing so; there’s no place for rushed and risky moves,” he says. “Without proper knowledge and a solid idea about what you are doing, every move would be more like gambling.”
It is crucial to understand cryptocurrency and blockchain technology basics before exploring the market. Additionally, it is recommended to gain a general comprehension of what crypto wallets and exchanges are. “When you figure out the fundamental concepts behind crypto, the whole industry becomes easier to understand,” says Avramovich.
Instructional articles, online videos and dedicated workshops are just a couple of ways to extend your knowledge. “At first, it may look like a lot of work, but just a few days of research will be far more beneficial than making random decisions without any understanding of the crypto world,” he adds.
Do your research
The next step in the cryptocurrency industry is a very popular concept that even has its own acronym – do your own research (DYOR).
In the cryptocurrency industry, it is important to do proper research. After spending some time understanding crypto and blockchain, you might find it easier to browse through the internet for projects that might be worth checking out.
But how can you do it? “Google everything and read as much as you can! Diving into a whitepaper may be quite difficult for beginners. But checking the chart history, market capitalization, roadmap, transparency of the team and the actual working product is something achievable even during your early days on the market,” says the MineBest CEO.
Research is a time-consuming process. Why not just buy a random cryptocurrency recommended by a friend or some guy on the internet?
The cryptocurrency market is volatile, which means that the price changes within minutes, even seconds. “As a result, when you buy a cryptocurrency without any strong support behind it, there is a big chance you will panic sell at the first price drop. This means an obvious loss, even though the price could bounce right back up,” he says.
Based on his experience, Eyal Avramovich believes that this kind of situation is easier to deal with when you have strong faith in the cryptocurrency you buy.
How to buy cryptocurrency?
Now, once you have gathered basic knowledge about the industry and found projects that you like, it is time to buy the cryptocurrency! This may seem like a long road before your purchase, but this way you will spend your hard-earned money on something in which you believe. There will be no random speculations based on nothing.
So, where can you buy cryptocurrency? The most popular way is through crypto exchanges. They allow users to exchange cryptocurrencies for other assets, such as conventional money or other digital currencies.
First, you need to create an account. Then, in order to transfer your money to the exchange account, you most likely will need to verify your identity due to the know-your-customer (KYC) and anti-money laundering (AML) policies to which most exchanges must adhere. Then you can top up your account through a bank transfer, with a credit card, or using one of the many other methods most exchanges offer.
After that, you will finally be able to buy your first cryptocurrency. However, Eyal Avramovich gives a warning. “You should only use the funds that you can afford to lose. As already mentioned, the cryptocurrency market is extremely volatile, which can lead to potential loss. It is crucial to be aware of that.”
How to mine cryptocurrency?
There are ways to participate in the market other than buying cryptocurrency through an exchange. One of them is mining.
Crypto mining is the process where powerful computers solve complicated mathematical puzzles to create a new block on the blockchain. The first miner that completes the puzzle receives newly created coins as a reward. Additionally, this process maintains and secures the whole network.
This may be a better choice for new participants in the market as mining is more stable and less stressful. However, you need expensive equipment (mining rigs), as well as technical knowledge to start mining coins.
Because of the costs, some people decide to mine with external companies that help with various aspects of the process – such as mining rig maintenance, technical organization, and more. MineBest is one of the enterprises specialized in providing hardware and know-how to individuals or entities looking to mine cryptocurrencies.