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It seems like currently everyone in the world is going crazy for cryptocurrencies, even some governments around the world are working to replace fiat with digital currency. While the majority of people were sitting on the fence about investing in cryptocurrencies the early adopters, the risk-takers, saw some extraordinary movements in the crypto land. In the year 2017, we saw the two leading cryptocurrencies; Bitcoin and Ethereum blow up in market cap and while 2018 and 2019 saw nearly all cryptocurrencies crash the year 2020 promises to deliver remarkable performance. If you are still undecided, in our opinion, now is the best time to jump on the crypto train as we teach you how to start investing in cryptocurrency.
Investing In Cryptocurrencies
At this time cryptocurrencies are very volatile and will cause you a lot of stress if you have a low tolerance, however, cryptocurrencies can also be very rewarding. Cryptocurrencies experience severe shocks and you could lose all your gains tonight and by the next morning double or triple your gains. Cryptocurrency can be profitable however you need to have a thick skin to profit from it.
Why Invest In Cryptocurrency?
Cryptocurrencies were established to release people of the vagaries of central organizations. In the world we live in a percentage of every dollar you earn is taken from you for tax, levies and other kinds of charges. There is nothing that escapes the eyes or hands for that matter of the governments and financial institutions. I am sure you remember the monetary crisis of 2007/2008 that was caused by the recklessness of centralized organizations that controlled large quantities of resources. This led to the failure of companies such as Lehman Brothers and the government used taxpayers’ money to bail out these ailing companies to stop them from going under.
One of the main advantage of cryptocurrencies is that people can carry out a range of transactions on s secure platform free of governmental control.
The goal of cryptocurrencies is to foster a decentralized ecosystem by removing the middleman from every financial transaction where governments and huge corporations will have no control over our finances. However, it still remains to be seen if cryptocurrencies will actually win the war over-centralization. But for now, the majority of the big institutions are not feeling comfortable with the popularity of digital money as it does not yield any interest and moreover being decentralized it is difficult to tax. These two elements are the lifeblood of financial institutions and governments. The cryptocurrency revolution has only just begun!
Should You Invest In Cryptocurrencies?
As you are in the driver’s seat of your life the answer to this question depends solely on you. Our advice is to be wise and thoroughly do your homework before investing your money in cryptocurrencies.
Be aware currently there are more than 2000 different cryptocurrencies with more being launched every day. There are many good and viable cryptocurrencies however many are very carefully crafted scams aimed at depriving you of your hard-earned cash. Despite the many dooms and gloom forecasts what is certain is that cryptocurrencies do have a promising future ahead.
How Much Should You Invest In Cryptocurrencies?
If you want to have a feel for cryptocurrencies Mike Novogratz, an ex-manager at Fortress Hedge Fund suggests following a rule of thumb and investing around 1-3 percent of your net worth. By following this method and not going all-in you safeguard your financial status in case things go against you. The best advice anyone can give you when it comes to investing in cryptocurrencies is to only invest what you can comfortably afford to lose. This will at the same time safeguard you from scams and unexpected events such as the recent crypto exchange ban in China.
While the likes of Bitcoin and Ethereum have actually gotten stronger since their launch now there are far too many scams camouflaged as the next big thing in the crypto arena. Sadly, thousands of investors have been taken for a ride with these scams and lost fortunes and it looks like more investors will continue to lose money with these scams. Again, we recommend doing your research before investing any money into a particular cryptocurrency and starting out with a small investment that will not affect your living standard if you lost it all. Beware of new coins being launched as they have no history and in a lot of ways the coins that have been around for a while and have a track record can make a better investment.
Cryptocurrencies That Show Promise
While every cryptocurrency out there has its cons and pros, the following 10 cryptocurrencies reveal a great deal of hope.
- Bitcoin
- Ethereum
- Bitcoin Cash
- Litecoin
- Dash
- Monero
- NEM
- Electroneum
- Tether
- Ripple
You can see the top 100 cryptocurrency coins in real-time prices, however, in our opinion, these are few of the very best performing coins in the cryptocurrency landscape.
How To Buy Cryptocurrencies
To start investing in cryptocurrencies you need to purchase them. Cryptocurrencies are sold on Crypto Exchanges and to buy cryptocurrencies you first need to register with an exchange. In our opinion, one of the best exchanges you can register with is Coinbase. Understand that currently cryptocurrencies are not regulated, but this is slowly starting to change, and when you buy cryptocurrency you need to safeguard your investment as much as possible and Coinbase offers the best level of insurance when compared to other exchanges.
Using fiat you can buy a cryptocurrency and store it in your exchange wallet. Once you have purchased some cryptocurrency you now have a choice of HOLDING or TRADING and both of these investment strategies work under the principle of buy low and sell high.
Holding
The best strategy for beginners who invest in cryptocurrencies is holding or hodling as it is commonly known in the crypto world. By holding, we simply mean accumulating as much as possible of a certain coin to create a large stash over an extended time frame of price appreciation. The best way of trading with this strategy is to wait for the price to plummet and buy as many coins as you can, and if you are lucky you may buy the coins when the prices are lowest.
Day Trading
Day trading comes with high risks unless you know exactly what you are doing and is not recommended for beginners. In fact, using this strategy even skilled traders have been known to lose thousands of dollars every day on the cryptocurrency markets.
Take your time to learn more about the cryptocurrency markets before you decide to try out your hands with day trading. Click Here For Free Video “How To Make 5-50x ROI with this Cryptocurrency Software”
How To Secure Your Investments?
With the rate at which Bitcoin and other leading cryptocurrencies are increasing in value, it becomes even more important to protect your investments for the longer term. Investors are alarmed and shocked that exchanges and digital wallets don’t offer complete security from the fraudsters and scammers. For complete peace of mind and hacker-proof security use a hardware wallet. Hardware wallets make it extremely tough for any hacker to access your funds as all your coins are stored offline in your hardware wallet. Hardware wallets can also be used safely on infected computers.
Keep In Mind The Taxman
Despite the fact cryptocurrencies are formed on the concept of decentralization, the earnings from cryptocurrency investments are taxable since the IRS has classified digital currencies as property.
Therefore, the taxman expects you to pay property tax on your earnings. To prevent any unpleasant experience with the IRS down the road it is important to track and record all your cryptocurrency transactions.
Stay Informed
It is very important to keep abreast of information and developments in the cryptocurrency market that can have an impact on the markets in order to avoid sudden crashes arising from Black Swan events such as the ban on cryptocurrencies by China. With so much fake news these days our advice is to check and double-check any stories prior to acting on them to prevent false alarms raised for harmful intents.
Remember It’s A Gamble
When investing in cryptocurrencies, moderation should be your guiding principle. It doesn’t matter how your wallet is doing, learn to endure the volatility of the cryptocurrency markets, for the sake of your mind.
To make big wins in the unpredictable world of cryptocurrencies it is necessary to have a well-balanced and calm personality. Once again we advise only invest what you can comfortably afford to lose in the “wild west” of the cryptocurrency world.
Learn More:
What Is A Cryptocurrency ICO?
Bitcoin For Beginners Guide
What do you think is the number 1 reason people still don’t have complete belief in digital currencies? Leave a comment below. I would love to hear from you.
