Lots of people spit on their chins that they didn’t buy bitcoin when it cost several hundred or after that when it cost several thousand dollars. Virtually the entire second half of 2017 is a huge increase in the price of bitcoin. In 2017, the price of Bitcoin was at the level of USD 15,000. Know more about cryptocurrency investment in this article.
At the beginning of 2020, Bitcoin cost less than $ 7,200, during the coronavirus pandemic, the price dropped to around $ 5,200, to break through $ 33,000 at the end of 2020. dollars. How much will it cost in a year, two or three? 10,000, 50,000 or maybe a few hundred dollars again?
You will not read here about which cryptocurrencies are worth investing in – people who have become millionaires thanks to bitcoin and other cryptocurrencies. You will find their recordings on Youtube. The article is a beginner’s guide to learning more about cryptocurrencies. You can read about investing in Bitcoin here.
Advantages Of Cryptocurrency Investment
Experts studying trends in financial and IT niches see an almost snowballing increase in the popularity of cryptocurrencies. This is due to the number of advantages of virtual money over conventional means of payment. The main advantage is the almost zero transaction cost.
Moreover, financial transactions are concluded very quickly, without an intermediary and without commissions, in the form of cash. Block networks are online ledgers and people can pass them on through computers, ensuring others are honest. This makes the transactions transparent as different people can verify them.
Cryptocurrency Investment Is It Worth?
Compared to securities, bonds, and other classic financial assets, cryptocurrency is like a lottery. Aggressive demand for virtual coins, high margin and media attention leads to the fact that the real value of a given digital currency is often overestimated. Investors working with common stocks regularly monitor market capitalization and asset size.
When it comes to cryptocurrencies, their holders should constantly analyze the trends in this market. If you evaluate all the factors correctly and are lucky, the returns on such cryptocurrency investment can be very high. The ones you will never achieve with traditional investment methods. But it is also worth remembering about the risk, which is also higher here than in other areas.
Three Rules Of Safe Investing
This is where you should start. Cryptocurrencies are a system based on freedom, and there is no freedom without responsibility! How to invest in bitcoin so as not to lose profits? There have been many cases where people lost access to an account or the stock market collapsed and left to judgment. Fortunately, there are some rules to avoid unpleasantness.
The first rule of safe investing: invest as much as you can afford to lose
Investments can be classified according to the degree of security. Cryptocurrencies are considered risky for two reasons. Firstly, because of the possibility of state interference, and secondly, because of the possibility of virtual theft. Just as you can protect yourself against the second threat, there is no insurance against the decisions of Democratic politicians.
The second rule: diversify the products you invest in
Just because Bitcoin can be gold 2.0 and Monero is the most anonymous way to store your money doesn’t mean you have to buy cryptocurrencies with all your savings! Just as it is not worth keeping all your money in one bank, it is just as risky to invest in one product.
Rule 3: Think long term
During the great fall in value in 2013, many got scared and pulled out money, lost most of their capital.
Forecasting Of Cryptocurrency Investment
A new phenomenon in the modern IT industry has met with the caution of many financiers and authorities. However, cryptocurrencies are gradually becoming more popular, not only among ordinary users but also among entrepreneurs.
People from all over the world have the chance to earn huge amounts of money by investing in digital coins. However, potential profit, as always, comes with high risk and volatility. Before you invest, you need to refrain from your own research into the prospects of such a venture and understand the advantages and disadvantages of cryptocurrency investment.