Things you should consider before investing in Cryptocurrencies, like Bitcoin, Ethereum and more
If you are not living under a rock, you would have got the impression that Cryptocurrencies are making people Insane amount of money, or would have read or heard people say why is it a Ponzi scheme where you are guaranteed to lose your money. We will leave the question of is Crypto good or safe, for you to figure out. But if you are thinking about investing nevertheless, pay great attention to this article as we tell you, things you should consider, things you should know before investing in Cryptocurrencies.
It’s a risky game to play
The whole point of Crypto being a decentralized blockchain tech is that it deletes the need for central banking systems, which simply means it is threatening the conventional way we deal with money, which means it scares the banks and the lawmakers, so if you are among the people who are influenced by news, you might think of Crypto as a bubble and might think somehow we are paid to write this.
Crypto is far from a fairy tale where you can put you $100 and a month later take out $10,000. The insane rewards have major learning curves, Hours and hours of chart readings, and a tad bit of luck.
If you think Bitcoin and Ethereum is all there is you are a NOOB
According to CoinMarketCap, there are a total of 1536 cryptocurrencies that are listed as of 04/03/2018 and more are added as we speak, hundreds of new ICOs (Initial Coin Offering) are listed every day. Out of the 100 new currencies being announced the probability of half of them surviving until next year is very slim. In 2017 ICOs raised about $5.9 bn. So far in the first two months of 2018 over $3 bn has already been raised. All these currencies other than Bitcoin are called Altcoins.
Crypto is a very unstable market, people on the outside would say but not until you see how some Shitcoins ( Coins that people buy and dump just to make some profits in the very short term market) pump and dump you don’t really know how an hour can change your happiness into depression. You could be 90% up on the price you bought but your greed might say to you to sell when you are 150% up but the next day that coin crashes by 200%. Truly nothing is impossible in the world of cryptocurrencies.
Things you should know when getting in Cryptocurrencies
- The key to success in crypto world DYOR (Doing your own research), you can’t risk your hard earned savings to what someone said to you on twitter.
- Use Twitter, Reddit, and Telegram groups as the source for knowledge from where you should start to research about different coins that you might get behind.
- What people forget Crypto is more than just a market with insane high and fatuous lows. It’s a tech which could change how we live, how we see money drastically over the coming years. Blockchain and decentralised tech is the future not just for currencies but for our basic living.
- You have 100s of exchanges to trade Cryptocurrencies, and you would find many coins listed on only one exchange. So remembering different passwords and keys of different exchanges can be difficult so I suggest you to keep backups of all the keys and passwords offline in a safe place.
- You have to get to grips with the fact that if you lose your key or password there is little chance you will be able to get back your accounts.
- Most important thing I can tell you never trades with the fear of missing out, there are uncountable opportunities in this era of crypto, do your research, manage your portfolio, don’t lose hope when you do bad trades, because I have seen people earning $100k monthly just by trading crypto who have publicly said that they have made some of the impulsive and unthoughtful trades at the start of their trading journey.
In the end, I would quote a tweet I read on twitter by a crypto trader which makes total sense to me, ” Crypto resemble financial stabilisation to anyone who is willing to learn, work hard and put in hours researching. Crypto can be the most rewarding thing you have ever done or a financial nightmare for the wrong person.”