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Should you invest in Cryptocurrency?

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So many people don’t invest into Cryptocurrency because they sometimes don’t know how they work, the good or bad side of investing.

To do better and find an answer to your question, we need to discuss further and for better understanding, some terms will be explained below.

The Bad and Good of Investing in Cryptocurrencies like Bitcoin, Litecoin, Ethereum, and others.

Investing in Cryptocurrencies like BitcoinLitecoin, and Ethereum is quite a risky investment. We’ll look into the positives and negatives of investing in cryptocurrency.

Should I Invest in Cryptocurrency?

Investing in cryptocurrency could be a good investment, or it may not. That is true for cryptocurrency in general and likely for you as a person as well.

With cryptocurrencies being young, and the market being historically volatile, there is no yes or no answer about the wisdom of investing in cryptocurrencies. It is with this in mind that we cover some positive and negative and friendly (not exact professional) advice.

See Also: What is happening to btc?

How to invest in cryptocurrency:

 If you want to invest in cryptocurrency, and not just buy, sell, or trade, then you have a few options. New investors can choose between the GBTC trust – The Bitcoin Investment Trust (GBTC) is the only choice for investors to trade Bitcoin on the stock market, and for this investors pay a premium, sold on the stock market, a cryptocurrency IRA (we don’t want to recommend one until we have reviewed them), or an exchange-broker-wallet hybrid like Coinbase which allows customers to buy/sell actual cryptocurrency.

Each option has its good and bad but notably, only an exchange-broker like Coinbase/GDAX allows one to trade and invest directly in cryptocurrency.

General advice: With the above said, please note that we don’t offer professional legal, investing, or tax advice on this site. With that in mind, the best advice is to be prepared to lose every penny you invest in cryptocurrency, it probably won’t happen, but it could, and you need to go into the cryptocurrency with some stored up resilience. If, with that warning, you want to ease into cryptocurrency investing.

Keep it simple to start, and then consider easing into other options like online cryptocurrency exchanges or even cryptocurrency mining.

Also, consider dollar cost averaging (taking your funds for the year and buying weekly or monthly on lows). This will help you buy the average price of an otherwise volatile market. Sure, you can jump right in, but if you time the market wrong, you could be in for an unnecessarily tense roller coaster ride.

TIP: The least risky coins are usually the coins that have been around the longest and have the highest market cap and highest volume.

Anything other than Bitcoin, Litecoin, or Ethereum is riskier than those three. Of those, Bitcoin is the current top coin for longevity, market cap, and volume. It is notably also the most expensive we’ve all come across.

THE POSITIVE: Cryptocurrencies are, despite all its risks, perhaps the most exciting asset of the 21st century. A decentralized digital currency that works on the very interesting and likely here-to-stay blockchain technology. There are a thousand reasons to be excited about cryptocurrencies, but also reasons to be conservative in your investment strategy. Don’t dump your whole 401k into cryptocurrencies, but don’t be scared to get a toe wet with a small investment you are comfortable losing (to join in the fun and to learn more now, so you have the know-how later).

CONS: The attitude of crypto investors seems to change with the wind. A bit of bad news in term of regulations tends to send prices into a tailspin one day, but the same news another day might have no effect. Join a given cryptocurrency group on social media, and you’ll note it goes from hot-to-cold with the weather. The market is somewhat “fussy.”

See Also: Prediction On Bitcoin Price: BTC/USD Continues to Hold Above $9k as Larger Uptrend Is Expected

TIP: If we are in a bubble, and if that bubble pops, then after that cryptocurrency (specifically the major ones still standing) becomes a bet worth considering. The only reason for taking extreme caution is the current potentially high price. If the price goes back down to 2015 levels, then the number of pros will increase. Likewise, if government favors cryptocurrency over the next year, it will help add more pros to the list. The unknowns and high price and volatile market make it risky, but there are plenty of reasons to be excited despite all that especially long-term.

Trade with Nairabusiness

Fidelis James is a Nigerian. An aspiring student of the Nigerian Maritime University, in the field of mechanical engineering. He is also loveable writer and a business minded individual.

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