If you religiously keep track of the financial bulletin, chances are you have heard reporters mention the term cryptocurrency many times. The buzz around ethereum and bitcoin is not one that is bound to end soon. Here are a few important things to bear in mind if you have plans of investing in cryptocurrency.
Holding digital currency, for instance bitcoin, is the only means that one can have a share of this market. Recently, the value of bitcoin around the world surpassed the 10000 dollar mark. There is speculation that if digital currencies replace conventional money in future, their value will rise to unprecedented levels. Keeping some cryptocurrency is almost a sure bet on the positive prospects that the market holds.
A vast majority of investors who have some experience often shun new assets that register over appealing results in the first few years of their inception. This often makes many of them view the cryptocurrency fad as a bubble that will soon burst. The veracity of this will remain unknown till it is proven with time, but the truth is that business transactions are continually getting digitized, and financial institutions will soon have to go with the tide.
One thing you should note going forward is that cryptocurrency investment is considered high risk. This is largely because of the extreme volatility of the market. Trading is also unregulated in certain countries. As with anything digital, the platform also stands the risk of cyber attacks. Once you lose the key to your digital currency through a hack, you basically lose your investment.
Cryptocurrencies are great assets to invest in for two main reasons. First, they are a good cushion against the uncertain future of the dollar. A large number of financial analysts view the dollar as time barred and see a drop in its value as the world goes digital. Secondly, cryptocurrencies are universal. Traders can invest in them and transact using them regardless of location.
A first time investor is likely to grapple with the thought of which currency to go with. Most experts have always gone with bitcoin. It enjoyed market monopoly till the final months of 2016.
While this cryptocurrency still enjoys a dominant share of the market, its grip has gone down from 90% to about 40%. This is significantly attributed to the rapid growth of top competing entities such as ethereum and ripple. As an investor, the wisest thing to do would be to remain open to all possibilities and stay abreast of changes in the digital space.
Cryptocurrency can be a confusing concept if your knowledge of it is limited. It is possible to make good money over a short time frame and lose it just as fast. New cryptocurrencies get churned rapidly as old ones exit the market. Ensure you track market performance before buying any of them.
To invest, you ought to have a trading account at an exchange platform. Exchanges are scattered all across the globe. Once you open your account, you must deposit funds into it so as to start trading. Trading platforms usually allow users to transfer funds straight from their banks electronically.
Holding digital currency, for instance bitcoin, is the only means that one can have a share of this market. Recently, the value of bitcoin around the world surpassed the 10000 dollar mark. There is speculation that if digital currencies replace conventional money in future, their value will rise to unprecedented levels. Keeping some cryptocurrency is almost a sure bet on the positive prospects that the market holds.
A vast majority of investors who have some experience often shun new assets that register over appealing results in the first few years of their inception. This often makes many of them view the cryptocurrency fad as a bubble that will soon burst. The veracity of this will remain unknown till it is proven with time, but the truth is that business transactions are continually getting digitized, and financial institutions will soon have to go with the tide.
One thing you should note going forward is that cryptocurrency investment is considered high risk. This is largely because of the extreme volatility of the market. Trading is also unregulated in certain countries. As with anything digital, the platform also stands the risk of cyber attacks. Once you lose the key to your digital currency through a hack, you basically lose your investment.
Cryptocurrencies are great assets to invest in for two main reasons. First, they are a good cushion against the uncertain future of the dollar. A large number of financial analysts view the dollar as time barred and see a drop in its value as the world goes digital. Secondly, cryptocurrencies are universal. Traders can invest in them and transact using them regardless of location.
A first time investor is likely to grapple with the thought of which currency to go with. Most experts have always gone with bitcoin. It enjoyed market monopoly till the final months of 2016.
While this cryptocurrency still enjoys a dominant share of the market, its grip has gone down from 90% to about 40%. This is significantly attributed to the rapid growth of top competing entities such as ethereum and ripple. As an investor, the wisest thing to do would be to remain open to all possibilities and stay abreast of changes in the digital space.
Cryptocurrency can be a confusing concept if your knowledge of it is limited. It is possible to make good money over a short time frame and lose it just as fast. New cryptocurrencies get churned rapidly as old ones exit the market. Ensure you track market performance before buying any of them.
To invest, you ought to have a trading account at an exchange platform. Exchanges are scattered all across the globe. Once you open your account, you must deposit funds into it so as to start trading. Trading platforms usually allow users to transfer funds straight from their banks electronically.
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