Last year, cryptocurrency went bold in the market, and there are no signs of holding back this 2018. According to a recent study, 30% of the millennials would rather invest in Bitcoin than of government bonds. Almost half of them are well informed of cryptocurrency and the promising stories that came along with it. The will to invest in the young people and the intent to risk is making its way to the cryptocurrency trading.
What is a cryptocurrency?
Cryptocurrency is a type of currency where no bank, state or government has gained control over. After making its debut at the wall street, it continues to become a bold market captivating the heart of many investors. Indeed, investing in cryptocurrency is a risk but the time for the so-called virtual money has come and is starting to sweep the world on an exponential scale making way for the birth of decentralized trading.
You might think that now is the best time to keep the frenzy go all in cryptocurrencies, especially in the two leading cryptocurrencies— Bitcoin and Ethereum. Here are some aides-mémoires before you go on board.
Do not invest the money that you do not have.
Perhaps you have heard all those testimonials of your friends gaining profit, and you might want to get in the game because the chance of becoming rich is music to everybody’s ears. Yes, the chance. No matter how good the pot money, it is still a risk. So, risk only what you can afford to lose. If you borrow money from a friend or perhaps a family to come up with a good sum to invest, you are not only risking your money. Always remember that cryptocurrency is volatile in nature. Nobody can predict if it is going to the moon, or it’s going to come back crashing to the earth. So yes, only set what you have on the mission.
Do not invest in stories. Invest in Numbers.
Don’t just listen to chicken little. Look at the numbers and study the trends. Get involved. Know the market. Research and learn. If you want to be a part of the game, you must know how it must be played. Make your case study. It is good to listen to other people’s testimonials but your assets will be at stake, and you cannot depend your decisions on their stories. We are not talking about you losing a trophy; we are talking about losing your hard-earned money.
While investing, it will be best for you to keep your own ledger. Keep records of stock purchases and selling of shares. The reason behind this is for you as an investor to know how your money is going and in the future, you can create a trend and possibly project your financials.
Consult a Specialist.
Cryptocurrency is a very volatile and modern market – not everyone has adopted the idea of having a decentralized currency. The concept of digital money, not governed by the state and of banks is indeed a game changer and new for all of us. To make use of the full potential of your investment, it would be best to consult an expert. A specialist in your area. An accountant, expert in trading of cryptocurrency, for you to maximize your investment and for you to know more about your local laws of digital trading.
Although the main objective of cryptocurrency is decentralizing the monetary system of this planet, still we live in a very diverse milieu where each state and regions has its own law in terms of investment and trades.
Before you put your money into a business, know your market and test the waters. Introspect, “am I ready for this?”. So once you have decided to get on board, don’t just put your money in it, top it with your brain.