In the last couple of months, a lot of people have started thinking about cryptocurrencies, ever since Bitcoin hit the roof and reached the price at almost $18,000. But, if you are an average trader, should you risk everything and put your money on the market? We all have been witnesses of a sudden Bitcoin crash, and many investors became skeptical towards cryptocurrencies. So, possible investment in digital currencies could be a right decision, but also it can be a significant risk. Considering that this market is still young, there is no yes/no answer, it all depends on your skill and wisdom. Having this in mind, we will try to cover some pros and cons.
If you are serious about cryptocurrency and you don’t want to buy, sell or trade, then we can present you a couple of options. If you are a beginner, you can choose between GBTC trust, which is sold on a stock market, IRA, or exchange broker, which allows you to buy and sell coins. Each of these options has its advantages and disadvantages. So, general advice would the to review them carefully before you make your move. Another thing to keep in mind is the safety of your money. No one can guarantee you the safe income; you can lose your funds tomorrow. In this case, it would be wise to invest only 1% of your investible funds. Keep it simple and easy in the beginning and later when you feel more comfortable, or you have more considerable knowledge about this topic, you can increase the investment. Unfortunately, the riskier the investment is, the higher the volume.
Con – the cryptocurrency market has been volatile and Bitcoin can rise and fall hundreds of dollars on a day. Even though this shows that market can be unstable, it also gives us unlimited options because we don’t have a specific price. One the of the hand, are you ready to risk your money based on assumptions and assets that don’t have a particular value.
Pro – there is a significant advantage in investing in digital currencies. The cryptocurrency market is still young, and many investors are projecting the future prices that would ma
ke buying any digital currency as a great bet, regardless of what happens.
Con – so far Bitcoin is presented as the only long-term currency, and that trend can continue for some time, but we don’t know for how long. Investors can lose everything tomorrow because no one will guarantee them the price. For many traders, investing in coins is still a risky operation and not a safe bet.
Pro – even though, the cryptocurrency market is still in a bubble, this trend can continue for many years, and someday, coins can become an essential asset of exchange and even accepted as a mean of payment. Of course, not many investors are thinking about this options because they want to earn money now and think about the advantages and disadvantages later.
Digital currencies have raised a lot of hype in the past year, and the world went crazy over bitcoin. But, many investors are still insecure, considering its sudden drop. But, again, the bitcoin and Ethereum remain the hottest investment because people are hoping they can earn big money. If you are one of them and you think you have a change with cryptocurrencies, then we present you the ultimate guide. We have drawn up a simple guide for you, and it is intended for people who are just starting with this form of investment.
Until 2016, Bitcoin was the only cryptocurrency you could purchase, and if you wanted to invest your money in this type of trading, Bitcoin was your only choice. However, the situation on the market has changed, now the investors have a variety of alternatives. Even though, Bitcoin is still the dominant digital currency in this industry, in 2017 we got to experience its sudden drop, which cast doubt, and left many people in worry about its future. This is one of the reasons why traders saw a chance with other cryptocurrencies, like Ethereum. So, if you want to invest your money in digital currencies, you need to have your eyes open and listen to the online community because you have a lot of choices. Here are some possible selections: Ethereum, Ripple, Litecoin, Dash, Monero and many more.
A few years ago, it was a real nightmare to buy digital currencies, but nowadays, we have a lot of trading platform which provides such service. The easiest way to purchase cryptocurrencies is to go on an exchange. If you want to avoid paying for high fees, then you should but directly. In this case, you need to find a reliable exchange, open an account, verify your identity and make a transaction. What exchange you will use, will mostly depend on where you live and it’s always better to use an exchange that is physically close to you if something terrible happens. On the other hand, if this is not an option, then it’s better to use an exchange which is located in a stable country and has an excellent legal system.
When it comes to cryptocurrencies, there is no general rule when to buy them. You just need to find a balance because it’s not a good idea to buy them at the peak, but also, it’s not a good idea to buy them when they are crashing. The best time for this type of purchase is when the price is stable and at relatively low level. When the price starts to rise, you need to be strong and resist the temptation to sell your coins because that might be only a beginning. Take some time and follow the trading market, don’t buy coins right away just because you’re bored, or you want to invest your money in something.