If you are reading this article then you must have at least heard of cryptocurrencies or Bitcoin as the biggest and most well known among them.
Many people have heard of cryptocurrencies, but have either lost a lot of their invested assets in the so-called bear market(when the price is falling) or haven’t invested yet due to the volatility and some people saying it’s a scam. We would like to clear some of the miss conceptions about cryptocurrencies in this article and present some of the benefits that they have and why investing in cryptocurrencies might be a very good investment for the future.
Cryptocurrencies are a scam!
Some big names like Warren Buffett who is a world-famous investor have the standpoint and belief that the Bitcoin is a pyramid scheme, or so at least he said in one of the interviews. On the other hand, we have a big name like Jack Dorsey who is a Twitter CEO but is very positive about Bitcoin and cryptocurrencies in general. Who then to trust? The answer is very simple. Make your own research and decisions!
The question is how well educated is anyone’s standpoint and view and what are his/her interests in taking a stand for or against cryptocurrencies? We must be careful and make our own research when it comes to who we trust and why we trust them. If a so-called big name says something that doesn’t make it automatically right or true.
Source : http://financeindex.co/investing/
I lost all of my money!
This is a very well known statement of anyone who invested in hype at the end of 2017 and early 2018 while looking at the price of cryptocurrencies drastically falling trough the year 2018 and 2019. But is that true? What are the circumstances that this statement holds in and why this happens to people? This are the questions that need answering.
The statement I lost all of my money is only true if you sold your positions or moved your assets from cryptocurrencies to fiat or any other investment. This happens to people because they are not educated, they invest emotionally and in the wrong times of the market. One of the smartest things you can when it comes to investing is that you educate yourself, employ a professional to manage your investments and have a long time horizon.
How much did you gain, if you were patient?
If you started investing early in the era of cryptocurrencies you could have made gains of thousands of percent, but if you traded emotionally or panicked when the price fell and sold you made huge losses. What does this teach us? It is important that when you start investing you have a long time horizon rather than a short one and a mentality of patience instead of an opportunistic view. Unfortunately, the majority of investors in cryptocurrencies are more opportunistic then long term investors.
Bitcoin price for the last 10 years in a chart below :
If you invested $1000 in Bitcoin in 2010 you would have $35 million today.
How much will you be able to gain in the future?
Considering the cryptocurrencies market is very small compared to big traditional markets and that the technology is more and more welcome in every industry it’s not hard to guess that the future is bright for cryptocurrencies especially the ones that enable store of value, safe transactions, build trust, etc. We have to understand that not all cryptocurrencies are good and that some will fail in the long term. Some might be listed below.
But those that will bring value to society will last and might become new googles, amazons, and others in the future. Some of them you will find below :
Bitcoin, Ethereum, Ripple, Litecoin, Nem and others.
Some of the predictions about the future of the biggest cryptocurrency Bitcoin is bellow. Do not let the positive outlook fool you into just investing without making sure you understand what are the possible outcomes of your investment as well as getting acquainted with the risks that are part of even the brightest of futures.
You and investing in cryptocurrencies.
As more and more people start to learn about the opportunities by investing in cryptocurrencies the market will grow and expand. We can already find many countries and big institutions in support of investing in cryptocurrencies and understanding that they might be the future of the free market and sound money as well as the transfer of value as they are easy to use, simple, quick and can represent a store of value. We encourage you to educate yourself on the matter in-depth and decide to start participating in the future! The blow chart might be true in the future.
Some words of advice for the conclusion :
- Never invest all of your money or even take a loan to invest in anything not even cryptocurrencies.
- Buying in a hype(when everyone is buying) usually results in a loss.
- Find someone you trust to manage your funds and teach you how to invest well.
- Plan ahead and have a strategy for entry and exit.
- Be long term investor.
In our article on how to buy low and sell high, we explain how you can invest well and make sure you will not lose in the long term. We wish you to invest well and to make gains based on knowledge, patience, long term thinking, and wisdom!