You’ve been hearing about the meteoric rise of a cryptocurrency over the past year, and you want to jump in on the opportunity before it disappears.
However, most of the advice you’ve been reading online seems to contradict itself.
They say that investing in cryptocurrency is either a fool’s errand or an excellent opportunity that won’t last long.
So which one is it?
This blog will tell you what you need to know about cryptocurrency investing so that you can finally make up your mind once and for all!
Is it a good time to invest in cryptocurrency?
Suppose you’re hesitant to invest your money into cryptocurrency like in Stabila because of what you’ve heard in the news.
In that case, you might be surprised by how accessible and lucrative crypto can be. It’s a rapidly growing market that is constantly opening up new opportunities.
And while speculation is inevitable, it doesn’t necessarily have to involve huge risks.
In fact, many experts believe that it is best to use more risk-controlled methods when investing in crypto like dollar cost averaging or investing conservatively over time.
That is in order to reduce risk and make a decent profit on your investments. These are just some of many considerations for new investors.
There are plenty of online resources that can help you make smart investment decisions without risking too much of your capital.
Stabila offers Airdrop that can be best if you want some free coin or token to jumpstart.
What are the risks?
One of the first things to understand about cryptocurrency is that there are many risks involved.
Unlike stocks, bonds, or other traditional investments, cryptocurrencies don’t give you a share of a company’s earnings or any voting rights over how it’s run.
These assets can go to zero or be hard to buy; they’re relatively new, and there aren’t necessarily safety mechanisms put in place to prevent losses if you invest at a bad time. They come with no guarantees, warranties, or options for recourse.
And while some people have been able to strike it rich by investing early on certain coins, all an investment usually means is buying low and selling high.
Is crypto safe?
If you’re considering purchasing cryptocurrencies, there are some safety precautions to take into account.
Ensure that your wallet is encrypted and that it’s not connected to any personal information (if it is, it could be hacked).
Also, don’t hold all of your cryptocurrency in one place; spread out your funds across several exchanges or wallets to reduce any single point of failure.
Finally, keep your eyes peeled for scams-it may be tempting to jump at every opportunity to get involved with crypto if you aren’t familiar with investing/trading.
Still, scams will quickly siphon away all of your hard-earned money.
Where to invest?
Now that you know what to look for, where should you put your money?
Like most tech ventures, Crypto start-ups are highly speculative; they are also very high risk.
If you’re looking to invest in a cryptocurrency start-up (or even if you’re thinking about it) or a token like Zoom, pay attention to a few key questions.
- Is there a market?
- Is there traction?
- Does it have a working product, or is it still an idea?
- Is there an MVP (minimum viable product)?
- What does its team look like?
A good rule of thumb is that all crypto start-ups, even with good whitepapers and roadmaps, fall under those basic questions.
How much can I earn?
Many people think investing in cryptocurrency is a get-rich-quick scheme. That’s definitely not true.
When you put money into an investment vehicle, you want to be sure that it will grow your wealth slowly over time so that you can enjoy your riches for many years.
In exchange for taking on more risk, cryptocurrency investors should expect greater returns than those of traditional investments like stocks or bonds.
If all you’re looking for is to make some fast cash, then stick with what’s tried and true: stocks or bonds are likely better options than cryptocurrencies.
Get started with our beginner’s guide on buying and selling cryptocurrencies. We’ve also got a step-by-step walkthrough on how to invest in cryptocurrency.