You’ve probably heard about Bitcoin, Ethereum and perhaps other cryptic currencies such as Dogecoin. It appears that everybody is discussing cryptocurrency. Before jumping into what could be an ocean full of sharks wearing the bacon skin of a swimsuit Here are a few things you need to think about. Find here everything you need to know!
It’s not the same as the stock market you’re used to. The digital coins are distinctive. They move like a rollercoaster, without a security inspection. On certain days they’re up, and other days, they’re down. Bitcoin is an example. It could be worth $60,000 in one instance, but drop to $40,000 in the next. Make sure you buckle up if the ride is a bit scary!
Everyone loves a good tale. Did you remember the man who bought 100 bitcoins in 2011 for an affordable price and then discovered his wealth 10 years after? Oh the delightful sound of cha-ching! Don’t be fooled. This isn’t the typical Joe. It is crucial to be careful in dealing with the huge sea of cryptocurrency.
There is a lot of discuss “HODLing”. It’s a short form for “Hold on for the Rest of Your Life” and it’s the motto for people who purchase cryptocurrency and keep it thin and thick like a surfer riding on a massive wave. Are you able to hold an even hand or do your knees shake by every tidal wave? In this market that is volatile the tenacity of a monk from Buddhism could be your most reliable allies.
Crypto isn’t just about making fast cash. Many believe that it’s the new order in finance that is ready to shake up the previous order. However, for many it’s still a game with high stakes. Consider the old adage “invest only the amount you are able to afford.” This isn’t an investment in the house. It’s like throwing coins into a pond to see if you can get the desired outcome.
Don’t forget the art of research. Take a look at whitepapers prior to clicking “buy”. They will provide you with an understanding of the coin’s actions, similar to the treasure map you’d read prior to digging. The details are crucial. It’s complicated and confusing however, it is ultimately rewarding as in Shakespeare. If you are lost in this journey There are numerous online communities with guidebooks to assist you.
The question that never ceases to be asked is: should you diversify your portfolio? Some people swear by Bitcoin as the most prestigious of all cryptocurrency. There are those who combine it all and play in Litecoin and Ripple. There are a myriad of options however, there is a single rule to spread the risk. To say it simply don’t put all your eggs in one CryptoKitties Basket.
Another major issue is security. Imagine putting treasure boxes around with no lock. It’s not a good idea. Be sure that your purses and wallets are as secure as Fort Knox. Cyber-attacks are as clever as foxes, and you need to secure your valuables by putting them behind walls of steel.
Regulations are a different aspect to think about. Cryptocurrency is a topic that differs from country to country as night and day. Some people are not keen on it, while some believe it’s Voldemort’s currency. It is important to be aware of the laws that govern your region as they could influence the ease for you to purchase or sell your assets.
Take note that each success story is accompanied by a lot of buzz, hustle and excitement. The stories about wealth tend to ignore the sweat and tears that were shed on the way. Are you convinced that you’ll be part of this digital gold rush? Make sure you do it with a sense of humor, caution and a wide-eyed mind. Perhaps, in the future you might be able to recount your story of your own luck or lessons you’ve learned.