Investing in crypto is one of many and probably one of the most popular investment options that is currently observed in today’s digital trade market. It is pretty hard to have a discussion with anyone into the investment industry and not mention the crypto market and the opportunities it entails now or holds in the near future. However, that entire buzz does not indicate that it is definitely the safest way to invest your hard-earned money. It is just an option like any other traditional trading or investment market.
A few weeks ago, I met an old colleague, and I was completely blown away by the reaction I got from him I only asked how this crypto-investment venture was going, and all I got was a disdainful look in the beginning. I then asked him what happened? Because all we know is keep hearing about the best stories about how cryptocurrency investment has turned many into overnight millionaires. So I assumed it was a good idea to invest in the cryptocurrencies automatically.
He thought the same and invested everything. Due to being new and lesser knowledge, he did not know about he is sending an invitation to the debt to come and party with him, after hearing that my first thoughts were that I am never going near cryptocurrency again. I felt pity for my colleague. However, he did accept that it was his own mistake as well because he was too enthusiastic and did not do his research before diving right into the deep end of it.
He only heard what people were talking about in the communities and social media and took their testimonies for the word a revelation and jumped right in – and Yes – Stupid is the word. You should know that the crypto-market can be highly profitable, but it comes at a price, this market is also highly volatile. Do not think of it as a low-risk of safe type of investment venture.
Therefore, do not allow the rumors and other people’s hype to get you carried away and making a swift and risky decision, just like my colleague did. However, if you are seriously considering getting into the cryptocurrency trade and investing in crypto, then there are smarter ways you can invest and still make the most profitable returns on your investments.
You must also note that we in no way, shape, or form are trying to encourage or discourage you from investing in cryptocurrencies. We just want you to be careful and stay aware of the potentially high risks that are part and parcel of investing in crypto or any other stock investment business. We want you to a responsible, well informed, and calculated businessman, not a gambler.
How to Invest in Cryptocurrencies?
When you are investing in crypto, you must consider a few critical factors to ensure the safety of your hard-earned money.
Conduct thorough research before You Invest
To make a sustainable profit by investing in cryptocurrencies, you must carry out in-depth research into finding out which is the most secure and obvious crypto coin you can invest it. This way, not only will you become more knowledgeable about cryptocurrency trading and its rules, regulations, and trends, but you will also understand all the ins and outs of being a successful crypto investor or trader.
One of the fundamental reasons why many novices to intermediate level crypto-users are, they are still in doubt if cryptocurrency investment is a viable option. This fear either comes from an initial loss they suffered due to uninformed decisions or because they have seen someone losing it all in a few seconds. Either way is not an ideal way to gauge the potential of the crypto investment potential.
This is precisely the mistake my colleague made. He entered the market without proper research and knowledge and ended up losing it all. It is not cryptocurrency investment’s fault; the same would have happened to any enter, even traditional forex and stock exchange investment.
You do not have to be a ruthless gambler to make profits. It is always about careful risk assessment and making calculated and well-informed decisions to become successful. Not just cryptocurrency, if you make an investment based on flukes, rumors, and what others think, well, that is the worst decision you will ever make.
Do Not Follow the Hype and Noise
A smart traditional, or cryptocurrency investor will never base his decisions on hype and noise created by unreliable resources. If you want to make money investing in cryptocurrency, you will have to learn to take calculated risks and getting in touch with the right people to consult for proper guidance.
If you are simply going to rely on what internet users or other crowd is talking about a certain cryptocurrency, it is not going to turn out any good for you. The reason is that even if they are true momentarily, the high volatility of the cryptocurrency investment industry can crash the coin at anytime leading to a sudden massive loss.
Therefore, learn to be enlightened, learn from the right sources, consult the industry experts for guidance, and equip yourself with enough expert knowledge before you decide to dive in. It might sound easy, but making money by investing in the cryptocurrency sector is not a child’s play. You will have to be patient to make any substantial profits.
Understand the Risk, Strengths, and Limitations
Taking financial risks is not ballgame; it makes a lot of people very nervous. While some are very efficient in seizing the moment, jump on a potential opportunity, and make huge gains. However, some keep guessing, and nothing happens for them. Which one applies to you? Be sincere in your response here to yourself; it will help you decide what you need to do and which cryptocurrency portfolio you can invest in.
More importantly, if taking financial risks to make you nervous, then do not invest in cryptocurrency. There are other investment opportunities you can look into, which are less volatile and more predictable. However, if you like living on the edge in the world of investment, then cryptocurrency is yours to conquer.
What Cryptocurrencies are the best to Invest in 2020?
Even when you have nothing to do with the world of cryptocurrency, you still probably would have heard about Bitcoin. It is the world’s most successful and biggest cryptocurrency to-date. It currently owns 40% of the market share in the total economy of the cryptocurrency market cap. It is also the oldest cryptocurrency and dominating the market since its inception. Therefore, if Bitcoin continues to show the trend of increase as it did a few years back in 2017, you can rest assured that investing in Bitcoins is a good idea for 2020.
The price value of the Bitcoin fluctuates a lot from day to day basis. It has experienced and demonstrated many highs and lows in the last few years. With the price changing so dynamically and so fast, you get a brief span of time to quickly decide whether you should or should not invest in a particular Bitcoin.
Bitcoin investing needs you to stay updated with the latest trends and news around it. Whenever a new piece of technical improvement comes out, you may want to buy a Bitcoin. Additionally, a fall in price may also be an ideal time to buy Bitcoin. The lower price you buy it for, the more chances are for you to make profitable gains.
Investing in Ethereum
Towards the end of 2018, the price value of Ethereum touched the high of $720 with a market cap reaching around USD 70 billion. At the beginning of 2018, Ethereum’s value reached an astounding price of USD 1423 on January 4th, which took Ethereum’s total market cap to USD 138 billion.
Ethereum grew by 3000% in 2017 and became the second-largest cryptocurrency in the world, second to Bitcoin. So if you are asking if you should invest in Ethereum or is its price already at the peak? Well, the fact is nobody knows the answer. However, learning about Ethereum, its history, and getting experts’ advice that has experience with investing in this particular cryptocurrency will help you make the right decision.
However, you must know that unlike Bitcoin, Ethereum is not only a digital currency; it is a much more advanced blockchain project. It is because this cryptocurrency offers something unique that is by using Ethereum cryptocurrency platform developers can build their own cryptocurrency if they like.
Invest in Ripple (XRP)
Ripple or XRP is one of the best and upcoming cryptocurrencies, which reached its peak in 2017 with the growth of 36000%. Yes, you read it right! It went from almost $0 value at the beginning of 2017 and reached $2.4 in December 2017.
The main reason for its success is that it is not only a cryptocurrency, but it is also a payment system. Ripple utilizes blockchain technology, which makes all international transactions and payments secure and fast.