Whether you are following the financial markets, you certainly have learned about cryptocurrencies. Yet have you ever considered investing in cryptocurrencies?
Cryptocurrency as a financial asset for investing
Cryptocurrencies must strike a balance between means of payment and as a financial asset. In recent years, many people have been investing in cryptocurrencies. But are cryptocurrencies like any other investment?
After a record year 2017, Bitcoin reached $20,000 in December 2017, when the popular cryptocurrency saw its price skyrocket. However, this remarkable rise was followed by significant capitulation. The mass increase in trade volume and the massive increase in cryptocurrency market capitalization indicates investors ' interest in these new financial assets.
If you decide to invest in cryptocurrencies, this decision should not be made due to the hype or euphoria surrounding the quick profits that can be made by investing in cryptocurrencies. You should:
- Always do your own research (e.g. what is the blockchain?)
- Stick to the more popular cryptocurrencies (e.g. Bitcoin, Ethereum)
- Stay up to date on the current world of cryptocurrencies
- Limit your investments: cryptocurrencies’ volatility would be the main reason why you shouldn't invest all of your capital in cryptocurrency, a market which poses a high risk of losing money.
- Investing any amount in cryptocurrencies may in some cases prove to be lucrative in the long term, with a substantial amount of luck, but it must be held in mind that placing all your money on highly risky cryptocurrencies whose value does not stop fluctuating will be counterproductive and risky.
Thank you for learning with me and hope you have a good rest of the day!
Hive: https://hive.blog/@mercurial9
PeakD: https://peakd.com/@mercurial9/
Steemit: https://steemit.com/@mercurial9
Steempeak: https://steempeak.com/@mercurial9
Publish0x: https://www.publish0x.com/@aftershock9
Instagram: https://www.instagram.com/minimalistpixel/?hl=en
Read.cash: https://read.cash/@merurial9
LeoFinance: https://leofinance.io/@mercurial9
