Cryptocurrency has lately taken the world by storm, and how! They seem to be on the minds of every young investor who wants to make it big in a really short span of time. However, we all know the old adage that still holds true – haste makes waste.
Before diving in nose-deep, there are certain things you should know about Cryptocurrency.
- It is considered to be a gamble
Smart investors around the world who have made it big through smart investments consider Cryptocurrency to be a wild example of a gamble. Robert Johnson, a finance professor at Creighton University considers cryptocurrency to be “pure, unadulterated speculation in an unproven commodity”.
- Investing in small amounts should be your first step
Instead of dreaming far too big, it is considered ideal to start small but starts smart. When you roughly invest just 5% of your portfolio in cryptocurrency, it won’t hurt you in the long run if things go south.
- If you like to play safe, stay clear
Investors who hate humongous margins of risk would stay miles away from cryptocurrency solely because there isn’t even a solid form of currency to rely on here. While Bitcoins are the forerunners in the cryptocurrency influence race, one never knows when it’ll topple and something else comes in place.
- Transfers, however, get safer
We rely on third-party apps these days to transfer money. With Cryptocurrency into the equation, we now get to transfer money directly to the concerned party thereby making the transaction a whole lot safer.
- Cryptocurrencies are unpredictable
This is what the notion is about stock markets too, right? However, Cryptocurrencies are a whole lot fickle and you never know what value drop your currency may experience. With over 2000 types of coins, it is hard to determine which coin would do the trick for you.
As tempting as the offer may seem to be, you never know what really happens in the long run with cryptocurrencies. However, if you feel you have aced the game and figured out how they really work, well, you have found the keys to the treasure chest.