With cryptocurrencies headlining the news every day of the week, how can you avoid talking about Bitcoin? There are many people that think it’s the greatest investment of all time, while others seem to think that it’s a giant scam.
As with any investment, there are good sides and bad sides. The crypto market is not forgiving, and there have been corrections of up to 94 percent. Imagine investing a hundred dollars today, and tomorrow your entire investment is worth only 6 dollars. Read here, what should investors do in case Bitcoin & Crypt crash.
Most people would lose their minds. That is why the crypto game is not for everyone, and it is not for the short term. There is a huge difference between day traders and holders. Plus, as with any investments, there is a high-risk probability.
If you are someone who can tolerate a lot of it, then you can diversify your portfolio with a couple of altcoins too. However, for the average maximalist, Bitcoin is the only true way to go forward into the future.
Before you do anything, you should know that the entire niche of crypto is extremely volatile, and 50 percent of changes can happen once a week. This is what traders call paper versus diamond hands. Will you be a person who panics and sells every time the prices dip, or will you be someone who holds and reaps the rewards.
Time is the only thing that is going to tell. This coin has no intrinsic value, just like regular fiat money. The dollar has no intrinsic value too. The dollar is backed by people’s trust in the government.
We believe that a banknote is worth as much as it is written because the government makes it so. Bitcoin the same thing, where the government does not exist, and the body of proof and reliability is everyone using it. We will explain.
Banks vs. Crypto
Both banks and cryptocurrencies have ledgers. A bank must ensure that a person who has only 100 dollars can spend 100 dollars and not more. The Bitcoin blockchain is the same thing. If you have 2 BTC, you can’t spend any more than that. Read here bit more about top five Cryptocurrencies.
However, the central body that regulates transactions is different. When you go to the bank, the system of the bank decides whether you have or do not have enough money. This means that only the bank knows how much money you have and no one else.
This makes it extremely easy to manipulate the market, especially if you have close ties with the government. On the other hand, if you have 2 BTC, then everyone in the world that is connected on the blockchain will know that you have that amount.
Interested investors can get Bitcoins easily through Netcoins and any other reputable publicly owned crypto trading platform. The transactions made are transparent, allowing you to monitor your trade earnings in real-time.
Of course, it is not wise to tell everyone how much money you have, and that is why everyone on the network is completely anonymous. That said, you can enjoy privacy while earning coins within your trade options and means.
You have a code name with a mix of numbers and letters that makes zero sense to anyone except the computer that is verifying the transactions. It is a brilliant concept that will revolutionize the world of finance.
Crypto vs. Other Investments
The best way to invest in diversification, but the easiest way to make a profit, is with crypto. Nowadays, it’s impossible to open social media without hundreds of news stories being about Bitcoin millionaires, the prices dropping, or reaching peaks.
This is the hottest topic in the world now. There are two sides to the story. One of the sides is being led by Peter Schiff, who says that Bitcoin is a bubble that will pop at any time. He claims that it’s completely overvalued, and the day will come when it will be worth zero.
Of course, the value of BTC is completely volatile, and that is why there are massive drops and spikes. You can read this metal-res.com bitcoin guide for more info. Whenever a country bans or unbans crypto, or when Elon Musk tweets, the whole world is watching and trading. On the other hand, let us compare it to real estate, which is a completely tangible asset.
There is a lot of history behind buildings, and they are secure. Sure, we have seen housing markets explode, but there is still a physical space where people can live and work. That is why there are so many tax benefits for people who own real estate.
There are utilities and insurance which help you reach a smaller tax bracket. Plus, rent is a brilliant thing which brings money into your pocket at the start of every month.
Trusting Crypto
The acceptance of crypto and its earning potential was previously not acknowledged and accepted by people. But nowadays, things have changed in how people perceive crypto. With the pandemic and the continuous growth of modern technology, many people are now becoming more open to digital transactions. Hence, the rise of crypto.
While crypto investments are considered to be risky, they can be profitable too. Through smart and careful trading, staking and lending, and mining, you can start earning a passive income. Additionally, investing in crypto can also diversify your investment portfolio.
Crypto is relatively in its early stages. While it is true that blockchain technology has matured with time, gaining more strengths and offsetting most of its previous risks and vulnerabilities, theft remains to be the top threat to cryptocurrency users. Digital crime includes hackers stealing tokens from wallet software, exchanges, and ordinary users, investing scams, and fraudulent incidents.
That said, just like dealing with other investments, traders and investors should always practice caution when doing transactions online.
Which One Should You Pick?
Crypto is the only place where you can get a 500 percent profit within a year without gambling your money. Even though it’s an extremely difficult task to do, there are plenty of people that have done it and have the results to show for it.
If you pay attention to the markets, you can sell your coins at a higher price than when you bought them. There are many whales that try to do pump and dump schemes to manipulate the prices. Be on the watchlist and time your entries accordingly.
As Warren Buffet says, buy low and sell high. The more attention you pay to the market, the more of an idea you’ll have to time those drops and use the strategy of dollar-cost averaging.
However, if you’re someone who can’t tolerate high drops and think that you’re going to lose your money, then it’s probably not the greatest idea to get into the world of crypto yet. Regulation is still in the works, and there will be a time when this market is going to be more stable.
You May Like To Read:
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- How to Get Rich With Bitcoin: The Best Investing Tips
Author: Shynet Berou
