It is 2019 and we are still talking about cryptocurrency! Despite the bitcoin and cryptocurrency craze are going down a little bit, there are still millions of people who want to buy bitcoin but are just not sure about the profitability of committing financially in the bitcoin business. This article will try and address the perks of investing in cryptocurrency and whether it is a good idea or not.
So, is investing in cryptocurrency a safe bet? Can one eke a living from investing in cryptocurrencies in 2019? Read on to find investor tips that can help you make more informed decisions about committing your finances in cryptocurrencies.
One Hit Wonder?
When bitcoin, one of the best performing cryptocurrencies, has hit its highest value in December 2017, there were many stories about people who reaped millions from investing in the cryptocurrency from when it was only a little-known start-up. These stories motivated very many to try their hands in cryptocurrency but the fortunes of those investing in bitcoin post-2018 have never really been the same.
The meteoric rise to fame of bitcoin, paved way for other cryptocurrencies which were still in development stages and people rushed to invest in the new coins with the hope of replicating the bitcoin explosion. But did any of the coins ever hit the highs of bitcoin or was the cryptocurrency an explosion just a one hit wonder?
In terms of value, bitcoin has been on a steady decline since December 2017 hitting lows of $5,249 and only now it is regaining value with one bitcoin valued at $9,172. Bitcoin has generally been a rollercoaster ride with ups and downs. The other top-grossing coins like Ethereum, Litecoin, Zcash, Dash, Ripple, Monero have seen a similar trend of inconsistent fluctuations in value which only confirm one thing: cryptocurrencies are NOT a sure SAFE BET of minting cash.
After acknowledging that cryptocurrency is not a sure safe means of minting quick easy cash, it is imperative to note that there are still very many people who are eking out a living from these cryptocurrencies and you can borrow a leaf from these investors to increase your chances of a profit from your investment. Here are some professional tips that can help you gain more from your cryptocurrency investments:
Tips on How to Gain More from Cryptocurrency Investments
Choose the right cryptocurrency to invest in
The first step towards eking a living from investing in crypto is choosing the right coin fitting your risk profile and proficiency in the business. Although all the coins are based on the same blockchain technology, each coin has its own niche which affects its performance and value.
At one point bitcoin could be doing well while Ethereum is experiencing a slump in value. There is never a consistent trend cutting across all the coins at any given time. You should, therefore, dig deep and find out the best performing coin at a specific time and invest your money once you feel confident.
Settle on a specific investment model
There are very many ways through which you can invest your money and earn winnings from cryptocurrencies. Some people opt to buy coins and hold them for a very long time hoping that the value will increase, some people trade their coins for a profit while others invest in mining the coins and selling them for a profit.
The model of settled investment is dependent on their level of proficiency in the blockchain technology, their budget and the resources that they have at their disposal. For instance, investing in mining bitcoin needs one to have powerful computers that consume a lot of electricity. Unless one has enough money to invest in such equipment and energy, they should stick to different models that might be more profitable.
Invest what you can afford to lose
Remember cryptocurrencies are not a safe bet at all and one should not invest amounts they can’t afford to lose. Although the crypto investment business is not quite like gambling, there are very many similarities in that you can either win or lose your money.
You might not quite lose all your money in cryptocurrencies as you risk doing in gambling but poor decisions can cause you making very significant losses that will dent you financially. It is, therefore, wise to only and always invest amounts that you can afford to lose. Decisions like investing your life savings into risky ventures like cryptocurrency can come back to haunt you for a lifetime.
Diversify your potential income streams
With enough experience in the cryptocurrency business, it is advisable to try your hand in more than one income stream to increase your chances of making a profit. Once you understood the dynamics of cryptocurrency and found a working model that is giving positive yields, you can diversify and apply the same model to a different coin.
Although all the coins operate independently and each has its own niche, there are some factors like favorable legislation that positively impact all the coins and if you bank on such factors and invest wisely on more than one coin using different models, you can end up making a profit. You should, however, be prepared for the worst as well because sometimes all the coins take a slump and this can paralyze your investment.
Cryptocurrency is a volatile business but as the industry matures and the adoption rates across the world improve, with time there will be a more consistent pattern that will reduce the risk factor of investing in digital currencies.
As for now though, it is all about one’s understanding of the inner workings of blockchain technology, taking risks and simply waiting to see how the next minute unfolds. There is, therefore, no assurance of what will come the next minute and things are always in the balance for investors but the bottom line is that cryptocurrency is not a safe bet for minting quick cash and will not be any time soon.
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