4 things to know before investing in cryptocurrencies
The cryptocurrency market for the old is a market that contains a lot of risks besides profitability, but for beginners who hear about it tales some of them far from true and real, they see it as a closed gold box just waiting to open it.
The anecdotes that someone has turned overnight into a krypto son are true, but rare, and have occurred in different circumstances and times than at the present time.
Therefore, we do not deny that the crypto market contains golden opportunities, but we also do not hide the possibility of zeroing the wallet.
So what’s the solution?
The solution lies in learning and walking his way step by step and that the crypto market will not escape, but exists to survive, and therefore must be armed with science and knowledge and take the reasons for that, including the four things that we will address in the following:
1 – Cryptocurrencies are not just Bitcoin:
Bitcoin maintains a higher position in terms of total market value against other cryptocurrencies and is the first cryptocurrency created, thus being the leader of the cryptocurrency market, but investors should not allow this fact to block other options.
There are a lot of other interesting cryptocurrencies at this point in the beginning of the market in general, although these cryptocurrencies are not as valuable or well known as Bitcoin, but they offer similar investment opportunities.
Among the list of top alternative currencies you should keep in mind:
Ethereum, Dash, Bitcoin Cash and others look for them, their projects, teams, progress and other points to pay attention to.
None of these currencies are definitely better or worse than other currencies so the investor should thoroughly consider all options and choose what suits his portfolio.
2 – Do not adhere in one way to profit from the krypto market:
Most investors look at the cryptocurrency market and see long-term investment as a direct way to make a profit where they buy or percentages of cryptocurrencies, retain them, and sell them later for profit.
This may be the primary way to invest in cryptocurrencies, but it’s not the only way either.
These days, it is also possible to invest short-term (speculative) but it needs to be sold in practice and using technical or fundamental analysis to try to figure out when to enter and exit the currency.
If your style earns you more than it loses you, then hold on to it and improve it even more, but if it loses you, why are you still holding on to it until now?
3 – There are always more options :
In Item 1, we mentioned a number of prominent alternative currencies, but since the market is expanding significantly and on a daily basis, promising projects and currencies cannot be counted.
Stable currencies based on banknotes, psychological metals or others make the event, as well as central banks entering the scene by formally developing their digital currencies.
What we would like to say is that the market is developing and growing very rapidly, as currencies that were yesterday in the top ranks in terms of total market value are now at the bottom of the rankings.
4 – 2017 is an exceptional year :
Many people interested in investing in cryptocurrencies remember seeing bitcoin soar to nearly $20,000 at the end of 2017.
In fact, it’s easy to look at an event like this and a lot would like to pick up the next wave of it.
There is indeed an undeniable opportunity for cryptocurrencies to rise again or even to continue to do so, but it is important to realize that what we saw in 2017 was not normal.
Prices crashed shortly after the rise, with some arguing that the movement was primarily misleading, and that there was some market manipulation, a possible cause identified by some researchers.
Some research points to “coordinated price manipulation” that has exacerbated and increased prices.
Again, this does not mean that there is no profitable potential if all goes well, but investors should not expect 2017 to happen again out of the vacuum.