It is natural to be wary of anything new when it comes to finances. After all, it's natural to want to conserve one's wealth as much as possible and anything new represents an unknown risk. Unfortunately, a failure to invest in the new is often a failure to make record profits. If you've kept track of the cryptocurrency markets in recent years, you know that early adopters are bringing in quite a bit of money. Understanding what makes cryptocurrencies worth the risk is an object lesson of being an investor who is more apt to make logical leaps.
Cryptocurrencies certainly look like an excessive risk from an outside perspective. Not only are they relatively new, but they aren't backed by any of the usual players in the financial game. When most investors start looking for ways to make income, they look for ways to play it safe - but that's only useful for those who are either dipping their toes into investing or who are looking for a long-term safety net. Cryptocurrency actually embodies everything a less risk-averse investor looks for in a good investment, even if there are very real risks associated with any kind of financial gamble.
What does crypto do well? First and foremost, it has a very dedicated consumer base. Look at companies like Apple - they don't make record profits because their equipment is objectively better, but rather because they have a legion of consumers trained to accept only their products. Cryptocurrencies are much the same way, with a small but growing core of users who are dedicated to making sure usage grows. This means that even when it isn't growing, there will be a core group of users keeping cryptocurrency afloat - in other words, the product is unlikely to lose all of its value without a catastrophic event.
Cryptocurrency is also a product that is still in its growth stage. Look at commodity investments like gold, which are often pegged as safe investments. If you purchased gold when it was inexpensive, you were getting in on the ground floor of an investment that could only go up. Cryptocurrency doesn't have quite the same real-world reputation, but it's in the same place - steadily growing, but still new enough that a great deal of room is still left for growth. If you can deal with the risks, you have the potential for extreme rewards.
It's important to embrace risk as an investor. Cryptocurrency might look unproven, but that also means that there's much more room for potential profit. It may not be time to convert your entire portfolio to crypto, but it is certainly time to start making it part of your investment strategy. Take the time to research currencies and look at predictions, and then make your investment as soon as you can. Cryptocurrency is still growing in both popularity and value, so time is not on your side. Invest while you still can to get the most out of this new method of wealth generation.
The higher the risk, the higher the profits.
Great post. Thanks for the advice. I've just started looking into cryptos and bought my first BTC 2 months ago.
Congratulations. Happy investing!
Thanks for sharing good knowledge for us.
Thank you great advice!
It seems like there are several ideas that cross people's minds when it come to investing into anything and it's:
-I'm too late, it's already topped out and too expensive.
-I'm scared that it will drop when I buy it.
-I don't know enough about what I'm buying
Heres some advice, cryptocurrency is about 10 years old. And is only exploding now. YouTube is about the same but it exploded years ago. It took several years for it to become a part of daily life. Crypto isn't part of daily life yet. There is room to grow, so while the industry is primed, it's up to you to decide which one you want to go with.
If you buy and your afraid of it dropping, then there's only two things to do. Hold through the dips (don't use money you need to pay rent with) because you don't realize lost until you trade your tokens back for usd. The other is to trade for a loss before it becomes too great, but that's easier said then done given the volatility of the crypto market.
If you don't know what you are doing then learn by seeing, hearing and then doing it with smaller amounts.
There is no such thing as a free lunch. If you truly believe in the crypto market, it's best to learn about it and put in less sleep after work and more hard work to learn and understand the nature of the crypto market.
very fresh to crypto market. planning to start small amount with trading things any idea for beginners risk less??
For beginners, buy BTC and read all you can about cryptos.
@travelnepal - 1- Do not put all eggs in one bucket that means create a portfolio of different alt coins.
2- Do not invest without doing your own research regarding an ALT coin.
3- Learn to hold.
In this life, if you cannot take risks then, there's no chance to win as well :) right? @simonjones
Always awesome your post
I usually learn about it
Awesome post.
To be successful in life, you neef to be a risk taker.
Thanks for sharing.
Thank you for your advice. I'm very new to the crypto world, and advice like this gives me more confidence in it. :)
Cryptocurrency will take over the world economy just wait and watch!! :)
In every aspect of life, if you want to succeed. You must know how to handle being lost. Because every successful investor have take the risk. It the same with crypto, if you want to succeed, you must learn how to ignore and take FUD's.
Exactly, sometimes your risks have rewards!
I think the only real way to mitigate risk is to diversify. There are people out there who put all their money in a single cryptocurrency. I think that's a bad idea.