Explore our article to find out how you can complete bbSOL Golden Maxi Rewards tasks to win rewards worth over $700,000 in SONIC, SSI, J and ALCH airdrops!

Lunar New Year is just around the corner, and Bybit is turning up the excitement with its bbSOL Golden Maxi Rewards campaign! This festive event offers users a chance to stake SOL, earn bbSOL and complete fun tasks to unlock Red Packet rewards worth over $700,000 in SONIC, SSI, J and ALCH airdrops.

Not sure where to start? No worries — we’ll walk you through everything, from explaining what bbSOL is to showing you how to complete tasks and maximize your rewards.

 token provided by Bybit when you stake SOL on Bybit’s platform. Instead of locking up your SOL and waiting for staking rewards, you receive bbSOL in return, which you can use for DeFi, trading or lending while still earning staking rewards.

How to Participate in bbSOL Golden Maxi Rewards

button at the top right corner of the page to connect your 

If you don’t already have a Bybit Web3 Seed Phrase Wallet, you can create one by downloading the Bybit Wallet Extension and clicking on 

Create Your Bybit Web3 Seed Phrase Wallet

to successfully connect your Bybit Web3 Seed Phrase Wallet

: Complete all tasks. Please note that you only need to complete the staking task once. Once you’re done, simply click on the corresponding 

: On the bbSOL Golden Maxi Rewards Bybit Web3 Airdrop Arcade campaign page, scroll down to the segment under 

task, and you’ll be redirected to the bbSOL landing page.

: Stake at least 0.5 SOL to obtain bbSOL. Then, click on 

: Refresh the page, and the staking task should be marked as completed.

: For the last task, read the campaign’s T&Cs in order to understand the Red Packet Rewards! 

task, and you’ll be redirected to the bbSOL landing page. If you’ve already completed the staking task previously for Sonic, simply refresh the page or click on the 

button, and this task should be marked as completed.

task, and you’ll be redirected to SoSoValue’s official website. 

: On the bbSOL Golden Maxi Rewards Bybit Web3 Airdrop Arcade campaign page, scroll down to the segment under Jambo. Click on the 

task, and you’ll be redirected to the bbSOL landing page. If you’ve already completed the staking task previously for either Sonic or SoSoValue, simply refresh the page or click on the 

 task, and you’ll be redirected to the page to complete the last task.

: On the bbSOL Golden Maxi Rewards Bybit Web3 Airdrop Arcade campaign page, scroll down to the segment under Alchemist AI. Click on the 

task, and you’ll be redirected to the bbSOL landing page. If you’ve already completed the staking task previously for either Sonic, SoSoValue or Jambo, simply refresh the page or click on the 

The bbSOL Golden Maxi Rewards campaign is a great way to make the most of your SOL while celebrating the Lunar New Year. By simply staking SOL, you’ll unlock the chance to earn airdrops from top projects like Sonic, Jambo, SoSoValue and Alchemist AI.

If you haven’t jumped in yet, now’s the time. Stake, complete tasks and claim your share of the $700,000 prize pool before the event ends. Don’t miss out — get started today!

Beginner

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How to Complete bbSOL Golden Maxi Rewards Tasks for Bybit Web3 Airdrop Arcade

In this article, we'll go through how you can use bbSOL on Jito Re(staking).

 with Jito (Re)staking, now actively supported by P2P.org through the introduction of the rstSOL vault. This guide explains how 

 (bbSOL) holders can benefit from this collaboration, enhancing both liquidity and rewards within the Solana ecosystem.

Jito (Re)staking, a protocol within the Solana network, focuses on multi-asset staking that optimizes capital efficiency through a unique tokenization process. 

, Jito (Re)staking allows participants to retain liquidity while their assets earn staking rewards. Jito’s platform is renowned for its secure, transparent operations and a commitment to boosting the Solana ecosystem’s overall performance. 

P2P.org has launched the rstSOL vault as part of the Jito (Re)staking ecosystem, enabling users to restake their bbSOL. On Jan 30, 2025, the rstSOL vault will support its first 

 tip distribution and enhancing the transparency of network rewards.

The launch of the rstSOL vault marks the start of real-time reward generation for participants, coinciding with the TipRouter launch to ensure immediate benefits for stakers. Initially, the rstSOL vault will exclusively support TipRouter, with plans to expand to include other NCNs like Squads, Switchboard and Sonic in the future.

Through a strategic partnership with Bybit, the rstSOL vault will only accept bbSOL, Bybit's liquid staking token for Solana. This exclusive arrangement allows bbSOL holders to actively engage in the Jito (Re)staking ecosystem, thereby enhancing both the liquidity and efficiency of their staking activities. With an impressive $146.5 million already restaked across Jito’s vaults, such as kySOL, ezSOL, bzSOL and fragSOL, the ecosystem is experiencing robust growth. The addition of the rstSOL vault is poised to further accelerate this momentum and expand the capabilities of restaking on Solana.

As a key player in supporting the Jito NCN ecosystem, starting with the TipRouter, P2P.org is instrumental in pushing the boundaries of what restaking can achieve on the Solana blockchain. 

: If you don’t already have bbSOL, you’ll first need to obtain it by staking your SOL on 

Alternatively, you can do so through Jupiter or the Phantom Wallet.

 and approve the connection by clicking on 

: Once you’ve connected your Bybit Wallet, ensure that you’re on the 

tab by clicking on the drop-down menu on the left side of the page.

: Enter the amount of bbSOL you want to restake, and the amount of rstSOL you’ll receive in return will be calculated automatically.

: Verify the details of the transaction, and click on 

Congratulations! You’ve successfully restaked your bbSOL into the rstSOL vault! You can keep track of your rewards and track your rstSOL through the Jito Dashboard. You can also add more bbSOL to the rstSOL vault or withdraw your bbSOL, as needed.

Jito (Re)staking provides bbSOL holders with a unique opportunity to enhance the utility and rewards of their staked assets within the Solana ecosystem. Through the operational expertise of P2P.org and the innovative staking solutions from Jito, users are equipped to maximize their contributions to Solana’s decentralization and enjoy substantial returns on their investments.

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How to Use bbSOL on Jito (Re)staking

Hive AI is a modular system of decentralized agents working together to execute various on-chain DeFi tasks. Learn more now!

 is a network that’s composed of different decentralized 

. These agents execute complex on-chain operations, such as trading, staking and liquidity management, all through an intuitive natural language interface. By simplifying 

 (DeFi) processes and interactions for users, Hive AI makes the DeFAI (that is, DeFi + AI) space more accessible, offering powerful solutions for both novice and seasoned users.

This article explores what makes Hive AI unique, from its role in the DeFAI sector to its award-winning innovation at the Solana AI Hackathon. We’ll also explore its tokenomics, compare it with other DeFAI platforms and discuss how the BUZZ token shapes Hive AI’s ecosystem.

DeFAI, short for decentralized finance AI, merges artificial intelligence (AI) with 

-based financial systems. These projects leverage AI agents to automate and optimize activities like trading, 

 and market analysis, making DeFi more efficient and accessible. By combining the analytical power of AI with the transparency of decentralized protocols, DeFAI creates a new era of innovation in which users can benefit from real-time insights and automation.

The sector has seen rapid growth, with market potential expected to surge from $1 billion to $10 billion by the end of 2025. Projects like Griffain (see more below) and 

 are at the forefront, blending advanced AI features with decentralized tools to simplify complex financial operations.

One of AI’s greatest strengths in DeFAI is its ability to process vast amounts of 

 data. By analyzing blockchain activity alongside external market trends, DeFAI platforms empower users to make quicker, data-driven decisions.

Hive AI is a modular system of decentralized agents working together to execute various on-chain tasks. Each agent is specialized — to handle trading, staking or analysis — while higher-level agents coordinate these actions for more complex operations.

The platform’s intuitive design allows users to input simple queries, with the network automatically selecting the best agents for the jobs. Its scalable architecture ensures adaptability, enabling seamless integration of new agents and features. This dynamic setup not only simplifies DeFi interactions but also evolves continually, offering ever-expanding functionality for users.

, a full-stack software engineer with expertise spanning blockchain, AI, fintech and gaming. A graduate of Vanderbilt University, with degrees in computer science and mathematics, Jason has a proven track record of innovation and leadership, including serving as Project Manager for Change++ and as president of his fraternity chapter.

In May 2024, Jason secured first place at the global Microsoft Generative AI Hackathon by developing an AI copilot for students. This revolutionary tool processes multimodal inputs — like text, images and PDFs — to build knowledge graphs and guide learners toward their goals, showcasing Hedman’s knack for transformative technology.

, earning the $60,000 grand prize. This achievement highlights the platform’s innovative approach to decentralized AI. Hive AI’s win cements its role as a leader in the AI-powered blockchain space. Onward and upward! 

 designed to streamline DeFi transactions. Each agent has a specific 

, defining its tasks and capabilities. Users set objectives such as "Allocate 100 USDC to the top 5 highest-yielding pools daily," using a natural language interface. The Orchestrator agent selects the best tools from the action space to meet the objective, integrating Solana, CDP and social agent kits.

For autonomous tasks, the Orchestrator creates a task scheduler to manage the agent's activities, such as querying lending pools, lending on Solend or withdrawing funds. Hive AI’s intuitive setup and powerful coordination simplify complex DeFi workflows.

Hive AI stands out with its interoperable on-chain agents, enabling seamless coordination across diverse DeFi tools. Unlike Griffain (GRIFFAIN), which focuses on fixed trading strategies, Hive AI (BUZZ) offers flexible, user-defined objectives. Similarly, while HeyAnon (ANON) emphasizes conversational AI for crypto queries, Hive AI prioritizes actionable automation through task scheduling and customizable agents.

BUZZ is the native token of Hive AI’s DeFi ecosystem, which is built on the Solana blockchain. The total supply of BUZZ is approximately 999.87 million tokens. Token allocation includes 5% locked for one year, held by developer Jason Hedman.

BUZZ facilitates various functions within the Hive AI platform, such as transaction fees, governance participation and incentivizing network participants. The BUZZ token reached an 

 on Jan 22, 2025, with a 24-hour trading volume exceeding $98 million. Its market capitalization has surpassed $100 million, reflecting significant growth and interest in the project.

Hive AI represents a major step forward in combining AI with DeFi. Its modular agent-based system, intuitive interface and award-winning innovation at the Solana AI Hackathon together position it as a leading force in the DeFAI sector. The BUZZ token further strengthens its ecosystem, offering further utility and driving user engagement.

For traders, there's more exciting news. Bybit users can now trade the BUZZUSDT Perpetual contract in the Innovation Zone, with leverage of up to 20x. This listing provides an opportunity to engage with the Hive AI ecosystem directly and benefit from its growing adoption. Learn more about the BUZZUSDT Perpetual contract in Bybit’s 

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Hive AI (BUZZ): DeFAI Platform and Winner of the Solana AI Hackathon

De.Fi (DEFI) is a multichain protocol offering DeFi users a comprehensive set of security tools to help them invest confidently

 (DeFi) has experienced monumental growth over the years with the industry-wide 

 (TVL) standing at over $91 billion by the close of 2024. Despite the head-spinning influx of funds into DeFi platforms, security concerns are running high.

Some DeFi users place their trust solely in the cryptographic security mechanism used by blockchains, assuming it to be nearly infallible. Yet, the DeFi space has witnessed the loss of billions due to 

 and exploits in recent years, a stark reminder that achieving comprehensive security on these platforms is far from an accomplished task.

Simply speaking, the pace of growth in the DeFi industry has far outstripped the security advancements made by its protocols. In an environment where hacks, 

 vulnerability exploits are rife, what’s sorely needed is an industry-wide solution to address these challenges. We might now have that fix in the form of De.Fi (DEFI), an innovative, decentralized multichain protocol committed to safeguarding traders’ funds within the crypto finance ecosystem.

De.Fi offers a suite of products designed to enhance the security of investing and transacting on DeFi protocols. In the words of the De.Fi project team, its aim is to become the “CoinMarketCap of Security.”

 (DEFI) is a multichain protocol offering DeFi users a comprehensive set of security tools to help them invest confidently

. These tools are crafted to aid in protecting investments, analyzing protocols and monitoring the landscape for any suspicious developments. Using De.Fi, traders can monitor network addresses and wallets, keep an eye on their borrowed or lent funds, explore safe yield opportunities and obtain insights into any vulnerabilities associated with 246 protocols across 33 blockchains covered by the platform.

De.Fi also includes tools for smart contract security analysis and audit. The platform maintains some of the largest security-related databases — both a database of smart contract audits, and a database of DeFi protocol hacks (also known as “rekts”).

The De.Fi platform features a generative AI-based tool that guides traders in making informed investment decisions, based on their personal preferences, that takes into account security considerations, investment risk levels and other critical factors.

As of mid-January 2025, De.Fi had integrated with over 33 blockchain networks with full EVM interoperability, such as 

Some of the popular Ethereum-based DeFi protocols covered by De.Fi

The De.Fi Portfolio Tracker, a key feature of the De.Fi platform, is a comprehensive super app to help users with all their DeFi needs. This feature is designed to address the complexities associated with DeFi, especially when it comes to managing assets.

Some of the features you’ll find on the De.Fi Portfolio Tracker are as follows:

Get a view of your entire digital assets at a glance, and quickly scan your holdings to see your crypto tokens and NFTs across multiple 

-compatible and non–EVM-compatible chains.

Because of the fragmented nature of DeFi products, you need to keep switching between platforms to access your assets. With the De.Fi Portfolio Tracker, however, you can access assets on multiple networks through one interface.

The De.Fi Portfolio Tracker allows you to create address bundles so you can group multiple wallet addresses into a single portfolio. This feature gives you a complete view of your investment portfolio, facilitating easier management of your assets, especially if you constantly transact across different platforms.

The Portfolio Tracker has also incorporated a Transaction Tracker, which monitors and records all transactions conducted through the platform across the various supported networks. Get a detailed history of your trades, staking history and contributions to liquidity pools.

De.Fi also features a Crypto Market Page, where you can find deep insights designed to help you analyze and track the DeFi market. Designed as an alternative to popular crypto tracking website CoinGecko, it allows you to stay updated with what’s happening in the crypto space.

The Crypto Market Page’s user-friendly interface accommodates the needs of both novice and advanced users. You can examine the performance of various cryptocurrencies, including most 

 tab, which provides you with security ratings of projects, including highlights about the potential security risks and protective measures of the highlighted asset.

 feature lets you discover yield opportunities across DeFi protocols integrated with the De.Fi platform. It’s designed to optimize your yields by providing you with a comprehensive platform to view and analyze potential returns.

The tool is rich with yield data of different protocols, which helps you make an informed decision when investing in 

. The data isn’t limited to EVM-compatible networks, and includes info on yield farming opportunities on networks such as 

. Explore Yields also includes a filter function that allows you to customize your search to include only your preferred protocol for a more streamlined experience.

De.Fi Shield is a solution designed to continually monitor smart contracts, tokens and NFTs that interact with your wallet. Many DeFi traders grant access to their wallets to numerous apps that manage funds on their behalf. De.Fi Shield promptly identifies potential vulnerabilities or risks within the smart contract code of these apps in order to forewarn you about possible hacks and security threats.

Contracts and NFTs deemed particularly risky by De.Fi Shield are categorized as "High Risk," warranting further attention on your part. You can then easily revoke permissions previously granted to such apps. Using the 

 functionality is certainly much more flexible and quicker than going through all the potentially vulnerable DeFi platforms you’ve interacted with, one by one, to turn off wallet permissions. Meanwhile, high-risk tokens can easily be exchanged for other tokens with a click of the 

The De.Fi smart contract scanner is a solution designed to analyze any smart contract across the blockchains that De.Fi interacts with. It provides traders, developers and app operators with comprehensive analytics and assessment of smart contract code.

The scanner identifies potential vulnerabilities, and assigns a score ranging from 0 –100 to indicate a given smart contract’s level of security. The entire scanning process takes just a few seconds, making the scanner a quick and efficient tool for assessing security risks in smart contract code.

The scanner is a powerful analytics tool for DeFi traders, providing the chance to identify lucrative opportunities while protecting against potential scams and vulnerabilities. Developers can also leverage it to validate their own code for security flaws, thereby ensuring a safer trading experience for users.

Additionally, the scanner can analyze some popular tokens in detail to learn more about a token's liquidity levels, ownership concentration and other vital data.

De.Fi's Audit Database contains information on smart contract audits conducted for numerous 

 (DApps) operating within the DeFi sphere. In the last couple of years, many DeFi platforms have adopted regular code audits to reassure traders and demonstrate transparency of operations. The Audit Database details these past audits, providing information on each project's key points — the audit date, any revision dates, the auditor company involved and more. In addition, it contains details of audits conducted by the De.Fi platform and by a number of other trusted audit providers, such as Quantstamp, PeckShield, Chainsulting, OpenZeppelin, Consensys, CertiK and more. 

TheRekt Database details all the occurrences of hacks, exit scams and other security events in the DeFi world recorded by the De.Fi platform. It’s one of the largest databases of DeFi security breaches or breach attempts available in the industry.

Unveiled in October 2023, De.Fi 2.0 represents a significant enhancement to the original platform. In addition to functional improvements to the base security tools, De.Fi 2.0 has introduced several new products and services:

The versatile generative AI assistant offers customizable forecasts and investment advice based on adjustable factors, such as the user's preferred risk levels, destination protocols' security status, historical vault performance and various other relevant metrics.

What Is De.Fi Chain and How Does It Work?

De.Fi Chain is a smart contract–enabled audit and verification platform. It’s designed to comprehensively analyze smart contracts that developers from various platforms submit for verification purposes. Through a decentralized network of Indexer nodes, De.Fi Chain thoroughly examines the submitted code, identifying errors and assessing their severity to provide comprehensive audit advice.

Following the audit process, the results are disseminated to participating blockchain networks, including Ethereum, Polygon, BNB Chain and other platforms integrated with the De.Fi protocol. This ensures that smart contracts across multiple blockchains undergo rigorous verification, enhancing the overall security and reliability within the De.Fi ecosystem.

The DEFI token is the De.Fi platform’s native cryptocurrency. It’s been deployed on two popular blockchains — Ethereum and BNB Chain. Key functions of the token include:

. Holding the DEFI token grants you access to the De.Fi platform’s products, such as the Audit and Rekt databases and the smart contract scanner.

Reward token holders with exclusive offers

. These include perks such as app discounts, exclusive access to chat with the De.Fi team and 

 staking opportunities at partner DeFi protocols.

. In order to query a smart contract code via the De.Fi Chain, you must pay in DEFI tokens. Also, you need to stake DEFI to become an indexer and create a verification node on the chain. Indexers are paid in DEFI for their verifications. Delegators can also stake DEFI to share a portion of the DEFI rewards with the indexers.

. DEFI holders are entitled to participate in votes concerning the protocol’s future direction, developments and changes to features.

 token, with a maximum and total supply of 1 billion. The token’s supply distribution shares are illustrated in the chart below.

 Spot trading pair. To celebrate this listing, Bybit is holding a Token Splash event with 

 up for grabs. For a chance to earn a share of the prize pool, you’ll first need to register with Bybit, then trade DEFI and accumulate a Spot trading volume of at least 500 USDT. The event runs through Jan 31, 2025, 11AM UTC.

DeFi protocols provide a great alternative to centralized financial institutions and the existing financial system. However, with more than $2.2 billion stolen from DeFi apps in 2024 alone, security concerns are becoming more prominent in the industry.

Few protocols in the past have adopted such a comprehensive approach to DeFi security as the De.Fi platform has done. Its suite of products will undoubtedly grow more relevant as the industry continues to develop, TVLs locked on DeFi protocols rise and the safety of user funds becomes increasingly essential.

The era of blindly trusting blockchains’ built-in cryptographic security setups is coming to an end as the trader community demands more sophisticated approaches to DeFi security. That’s why the De.Fi protocol looks to be a great candidate to assume leadership in this niche. The more hacks we hear about, the more attention this innovative platform will receive from traders, app operators and developers alike.

Intermediate

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De.Fi (DEFI): Safeguarding Your DeFi Investments

Bybit Learn

Investing

Figuring out how much to invest in crypto can be even more important than deciding which specific coins you want to purchase. Learn more here.

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If you keep up with financial news, it can often feel like you’re hearing a story about a self-made crypto millionaire every other day. However, smart investors know that the reality is a little more nuanced. The crypto market comes with high rewards, but it also has high risks. To be successful, you need to be willing to 

 and make wise choices. This guide will explore one of the most basic things you’ll need to decide on before choosing to jump into the world of crypto — how much you should invest in crypto.

Figuring out how much to invest in crypto can be even more important than deciding which specific coins you want to purchase. Not only does the amount you invest in crypto impact your other finances, but it also determines which strategies you can afford to use.

The simple answer to how much you should invest in cryptocurrency is based on your net worth. Someone with millions of dollars can easily risk a lot more than, for instance, a college student without any savings. Traditional investment advice from financial expert Douglas Feldman 

 people shouldn't invest more than 1% to 5% of their total net worth in cryptocurrency. However, some crypto enthusiasts, such as

 be wise to invest up to 10% of your income in cryptocurrency.

Factors to Consider When Deciding How Much to Invest in Crypto

There's a lot of variation in guidelines for how much to invest in crypto. To find the right amount to invest for your specific situation, you'll need to stop and consider these essential factors.

One of the most important factors in determining how much to invest in crypto is the level of risk you’re willing to consider, or your risk appetite. If you have a high risk tolerance, you can invest more. Risk tolerance is partially a matter of personal preference. Some people are naturally cautious, while others are more comfortable making risky moves. However, it’s also wise to factor in your age. A high risk tolerance can work well when you're young because gradual market growth over the years will help balance losses. However, if you're older and closer to retirement age, a lower risk tolerance is advisable.

When planning to invest in crypto, it's a good idea to consider the best-case scenario as well as the worst. Ask yourself: What will happen if my crypto assets suddenly skyrocket in price and I make thousands of dollars overnight? If you're the type of person who would throw in more money or keep holding onto your crypto until the bubble bursts, it might be smart to reduce the portion of your money that you invest in crypto. The flashy profits associated with crypto can lead to overly emotional decisions that can cause problems for certain types of crypto investors.

, the types of coins you're holding make a big difference. Not all types of crypto have the same level of risk. If you intend to go for a risky investment portfolio with nothing but 

, you probably shouldn't take all your assets and invest them in crypto. However, if you intend to invest in a broad range of reliable coins, especially 

, allocating more of your assets toward crypto is a reasonable choice.

Things change fast in the crypto world, so the same advice doesn't always work in different situations. Any time you’re going to invest in crypto, you need to take a look at crypto market conditions. In a 

, prices are consistently high, so you may want to invest less. Meanwhile, in a 

, prices are low, and you can often get big returns by putting extra into crypto investing.

Your liquidity refers to the amount of easily accessible cash you have at hand. Crypto markets are fairly liquid, since you can remove your funds at any time. However, since crypto is a volatile asset class, trying to remove your funds during a bear market can lead to considerable losses. Before putting large sums into crypto investing, think about when you'll need liquid cash. For instance, if you're going to need a large lump sum for a house deposit or another big purchase soon, you need to invest less money in crypto.

Keep in mind that a lot of the recommendations to invest between 1% to 10% of your money in crypto are based on income. However, the reality is that different people have different budgets. Some may need almost all of their income for things like food and housing, so it's not smart to take all your money and invest in crypto. However, others who have more disposable income left over after managing other budgetary needs can invest in crypto more often.

The cryptocurrency market as a whole does follow certain trends, but crypto investments always fare better if you actually understand projects before you invest. It's a poor decision to put a large portion of your assets into obscure crypto you know nothing about. Informed investors only put significant investment into specific cryptocurrencies if they take the time to 

, understand its real-world utility, explore its pricing history and see how well it performs on crypto exchanges.

What Is a Good Allocation for a Well-Balanced Crypto Portfolio?

Once you figure out how much money you want to invest in crypto altogether, you need to consider how much money to put into each specific crypto. It's important to have a diversified portfolio, so a single coin running into issues won't tank your entire crypto investment portfolio. There are a lot of different ways to invest in crypto.

The simplest investment advice, as suggested by

, is simply to put 60% of your money into Bitcoin and 40% into Ethereum. That's a decent choice if you know nothing about crypto assets but still want to invest in crypto. However, if you're willing to research individual coins and pick your favorites, try this asset spread:

If you are open to some speculative exposure, consider allocating a small percentage (2 - 3%) to emerging sectors like 

Compared to some other investments, such as bonds, cryptocurrency is considered risky. The 2020 - 2024 chart below, detailing Bitcoin and S&P's weekly returns, reveals the relatively drastic peaks and troughs of Bitcoin in comparison to S&P 500. Notably, Bitcoin recorded a weekly drop of over 40% and nearly 30% rise in 2020, thugh its volatility has declined over the years. In contrast, S&P 500's gains and losses rarely exceeded 10% throughout the entire period.

Despite Bitcoin's drop in volatility, it is still considered relatively risky to invest in crypto because of the market’s significant price fluctuations and the proliferation of 

s. Additionally, there are countless examples of people who invest in crypto, jumping onto trends and losing their money when prices on the crypto exchange drop. One

 illustrates these dangers: he became interested in crypto during the pandemic and quickly got hooked upon seeing his portfolio values rise. He invested $50,000 into crypto, and eventually built an impressive portfolio worth $300,000. Following a 

, he had only $5,000 left in his account.

Furthermore, crypto markets are still not fully understood by the public, and are less regulated than traditional investments, so it's easier for malicious actors to take advantage of naive investors. For example, crypto-lending company 

 promised to store customers' assets, but when the company went 

, many users found that the company refused to return their invested funds. A similar issue arose when 

, and investors could no longer withdraw funds from their accounts.

Despite its risk, cryptocurrency fills an excellent niche in the financial world. When you invest in crypto, it can ensure your portfolio is diversified and insulate you from stock market crashes and other issues with traditional investments. Deciding to invest in crypto is also a valid option when you want to work with some higher-risk investments. Even beginning traders can find it useful to place a small portion of their investment funds into some reliable cryptos.

Furthermore, cryptocurrency allows people with tech expertise to make highly informed decisions. Finding your niche is always a useful investment strategy. Those who don't keep up with manufacturers and foreign currency exchange rates might find that they can specialize by choosing to invest in crypto. If you enjoy learning about the latest tech news and following online memes, crypto investments can be a great way to turn your knowledge into profits.

However, even though it often works well to invest in crypto, you still need to exercise some caution before working with crypto exchanges. If you want to invest in crypto, it's essential to follow the classic rule of, "Only invest the money you can afford to lose." Those who take out loans to buy 

 or throw their entire retirement account into crypto can end up losing it all if the markets take a turn for the worse. Like any other volatile asset class, crypto needs to be approached with some common sense.

Deciding how much money to invest in crypto is an essential part of your investment strategy. By considering things like risk tolerance and liquidity, you can create an investment portfolio that addresses your unique needs. When you have the right amount of money invested in crypto, you have the potential to make impressive profits without risking all your savings.

How Much Should You Invest in Crypto? 7 Factors to Consider

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