We have heard a lot that someone who earned a fortune investing in cryptocurrencies like Bitcoin. This article will clear your thoughts and give you a clear perspective on why or why not to invest in cryptocurrencies like bitcoin. Investing in cryptocurrency is just like investing in normal stocks and believe me it’s easy too.
It’s a little late to become a crypto millionaire or something. You just missed a golden train that left in early 2016. Though, you can still convert your 100 to 1000s or maybe to 0. The thing is, in the case of cryptocurrency there is a good chance that you change your 100 to 0. Trust only on those exchanges that have great reputations like Binance and Coinbase. Or your local exchanges like WazirX or Bitbns (in India).
Why not invest in cryptocurrencies
Who knows, maybe you choose an exchange platform, you trade your $$ to cryptocurrencies and the next day magic happens. The exchange platform is closed/hacked and everything you had now doesn’t exist. Maybe the price went down like crazy and you have successfully converted your 100 to 10 or 0. Now, you started regretting it. It’s not an assumption, google it, there are 20+ cryptocurrency exchanges around the world that either got hacked.. Here are the 5 worst hacks in the crypto world.
You wish you never had invested your hard-earned money in that. My point is, the cryptocurrency market is very volatile (price changes very frequently) and if not done safely the money is hackable. As it is very easy and cheap to start your own cryptocurrency platform there are several fakes going around. They will give you a surety that you will get double what you invest and that’s where all the trouble began. You trust him, didn’t do any research, and simply invest. Here is an example of the Kashh coin who does the $300m scam.
If you are okay with this kind of situation then it is Okay. If not, stay away from it. Don’t be more greedy. Invest in Mutual funds, other stocks that have a governing body behind them. Investing in cryptocurrencies is easy, but taking profits out of it takes time. If you have time to spend on research and sentiment analysis then you are most welcome.
If you are a student stay away as it is going to take a lot of time of yours which you can use to utilize better.
Why and How to invest in cryptocurrencies
If you still want to invest in cryptocurrency, then invest only what you bear to lose. Are you okay to lose $10? Just go with it. If you are okay to lose $1000, invest it, beat the heat inside you. But always be ready that anything can happen as there is not a governing body, there is always a fear of loss. Don’t regret later that you never know about that. Trade with secure and reliable cryptocurrency exchanges only like Binance, Coinbase, Kucoin, Hotbit, Huobi.
The good thing is, you can easily save yourself from being scammed. You just need to be patient, calm and keep looking at everything with an open eye instead of blindly trusting anyone. People are still earning a good amount after investing in cryptocurrencies like Bitcoin, Litecoin, Ripple, and several others by proper analysis, patience, and research.
The so-called clever investors are using margin trading, stop loss trading, so they don’t lose much. They are doing proper research and investing in only those which they believe have a future. Traders are investing in the concept of projects and the people behind them, instead of listening to just one guy. They are patiently taking their time to analyze before investing in cryptocurrencies and waiting to sell instead of FOMO. They are active on every social media platform and continuously look for sentiments of people for a coin, known as sentiment analysis.
How to invest in cryptocurrencies
As I stated earlier it is very easy to get started trading cryptocurrencies. The worldwide secure and reliable exchanges like Binance, Coinbase, Kucoin, Hotbit, Huobi make it a lot easier for newcomers. To invest with any of these exchanges you only need to have a debit/credit card for purchasing any cryptocurrency.
We already have provided an ultimate guide of how to use Binance where you will know everything you want to know as a beginner about trading.
Why not to invest in cryptocurrencies:
- Risky environment – Scams, hacks. Though these are avoidable.
- Too much volatile – Price changes in a fraction of seconds. The price will be $11,000 and it will become $40 if someone finds a bug in its code.
- Takes a lot of time – Took a lot of time on research and analysis.
Why invest in cryptocurrencies:
- More risks comes with more rewards.
- The technology is still new, people are adopting, several countries made trading legal.