Bitcoin and other cryptocurrencies are increasingly popular investments with private individuals. Many people have indeed invested in the beginning of Bitcoin (about ten years ago) and since then they have been in bitcoin with a small fortune. This is really how bitcoin has earned its reputation as a highly profitable financial asset. This is also how many people and the media have looked at cryptocurrencies.
That said, although an increasing proportion of the world’s population has clearly set its sights on bitcoin, some people have not (yet) taken the opportunity. The main cause remains the fact that bitcoin and cryptocurrencies can at first sight confuse their functioning, because the bitcoin is revolutionary and far from our usual thinking patterns.
This is also how bitcoin gained popularity with investors, both individuals and institutions.
However, before you invest in bitcoin and other cryptocurrencies, there are some things you need to know. As with any investment, it is necessary to take up certain important elements upstream.
First, to clarify some things, you must keep in mind that there are different types of cryptocurrencies. They all have a specific goal to achieve. For example, bitcoin, as the first cryptocurrency, was created to facilitate monetary exchange between individuals (without going through a bank). Ethereum was made, for example, to be able to create other types of crypto projects in a simplified system. As for the Ripple, it is made to facilitate money exchange by being faster and more efficient than Bitcoin.
And the list is big. Each cryptocurrency has a corresponding type of project. This is what you need to know first. And what you need to understand is that every project is not equivalent in terms of viability, creation team, community approval, etc. These are all factors that cause a cryptocurrency to increase in value or not.
Cryptocurrencies experience a growth that has not yet reached its peak
Cryptocurrencies are interesting for investors because they are not regulated by governments, because their offer is limited and because they are in principle confidential. But they are also complex tools to understand, only to buy through specialized online sites, and they are no longer as cheap as before. The craze is already over, which means that many cryptocurrencies – and especially bitcoin – are no longer affordable. However, according to experts, the growth potential is still promising.
That said, it is important to acknowledge that the cryptocurrency market is still in its infancy, which generally translates into huge opportunities for starters.
Some critics don’t find bitcoin interesting. It is actually objectively difficult – to give the arguments to people who do not believe in bitcoin. Indeed, one cannot deny the technical innovation that bitcoin brings. We cannot deny that bitcoin and cryptocurrencies are a great solution to facilitate monetary exchanges for individuals.
Even worse, it is extremely difficult to discriminate against blockchain, the technology that supports cryptocurrencies and that gave rise to bitcoin. Blockchain technology indeed appears to be the technology of the future and can resolve incredible amounts of errors in various areas: medical, scientific, information, etc.
If you decide to invest, do so only with an amount that you can afford to lose and have an exit strategy. Also keep in mind that “What goes up can go down”. It is also the basis of cryptocurrency trading. Understand that “Volatility is a two-way street, so keep in mind that these investments can fall to zero because they can easily increase by 1000%.”
It is therefore with full knowledge of the facts that you must take this new opportunity.