You’ve probably heard of Bitcoin, Ethereum and perhaps some other currencies that sound funny, like Dogecoin. These days, it seems like everyone is talking about cryptocurrency. But, before you plunge into what could feel like swimming in a pond of sharks in a bacon-colored swimsuit, let’s chat about what you need to be aware of. Learn more here to build your knowledge!
First off, crypto ain’t your typical stock market business. The digital currencies come with their own unique quirkiness happening. They fluctuate like a rollercoaster, without a safety checking. Sometimes, they are up and some days, they’re down. Bitcoin is an example. It could be worth $60,000 in one moment but then drop to $40,000 in the next. If the thought of riding on a train is a bit scary, make sure you buckle up!
Everyone enjoys a good story. Remember the guy who bought 100 bitcoins in 2011 at an affordable price only to discover his fortune 10 years after? Oh the dulcet sound of cha ching! Don’t be fooled. This isn’t your typical Joe. It is crucial to be cautious in dealing with the massive sea of cryptocurrency.
There is a lot of talk about “HODLing”. It’s short for ‘Hold On For Dear Life It’s the ethos of those who purchase cryptocurrencies and hold onto them thick and thin, like the surfer who rides a huge wave. Are you able to hold a steady hand or are your knees shaking with every ripple? The stoicism of a monk can be your greatest ally in this crowded market.
Crypto doesn’t just mean making fast money. Some see it as the new wave of finance, ready to challenge the established order. For many, however this is still a high stakes game. Think of the old saying “invest only the money you can afford.” It’s not an investment in the house. This is like throwing coins into a water source to see if you get the desired outcome.
Don’t forget about the art of research. Before you click the ‘buy’ button take a look at whitepapers. These papers provide you with insights into what the currency is doing, such as reading the treasure map before digging. The details are crucial. It can be like reading Shakespeare complicated and confusing but ultimately rewarding. If you are lost on this path, there are many online communities that offer guides to help you.
The most frequently asked question is: Do you need to diversify your portfolio? Others rely on Bitcoin the greatest of all cryptocurrency. Some combine it all and are interested with Litecoin or Ripple. There are a myriad of options however one rule remains that you spread the risk or simply that you shouldn’t put all your eggs into the same CryptoKitties basket.
Another major issue is security. Imagine putting treasure chests around without a lock. Not enjoyable. Be sure that your wallets are secure as Fort Knox. Cyber-attacks can be as sophisticated as foxes and you want to protect your assets behind steel walls.
Regulations are another factor to take into consideration. Cryptocurrency is a subject that varies from country to country as night and day. Some love it; others pretend to be Voldemort – the name of the currency that isn’t called. Be aware of the laws that apply to where you live, as they could affect how you buy or sell your assets.
Remember, lurking behind every profitable story is a web of hustle, hype and lots of craziness. The stories of wealth tend to overlook the tears and sweat that were shed along the way. So, are you thinking of yourself in this gold rush? Keep your eyes open, a hint of humour, and a boatload of caution. Maybe, someday you might be able tell the tale of your own luck or lessons you’ve learned.