Wealth comes from making smart decisions. If you started to invest in cryptocurrencies at the beginning of 2017, you would be getting unparalleled returns right now. The market is continuing to move at an extremely fast pace.
At its peak, it reached a market cap of just over $117 billion in June, up from $18 billion at the beginning of the year. For the first half of 2017, the top three cryptocurrencies—Bitcoin, Ethereum, and Ripple—had returns of 165%, 3,500%, and 3,329%, respectively.
As a result of high growth, the market is prone to extreme volatility that can leave new cryptocurrency investors anxious to cash out early. During steep market corrections, panic selling starts and pessimism grows in the media.
While it is tempting to quit—out of fear of losing money in a volatile market or to use the returns on that new car you want—the right move is to stay committed and HODL (Hold on for Dear Life). As can be seen from the history of dot-com stocks, those who cash out early will later regret it as blockchain technology becomes widely adopted.
In terms of high returns and volatility, cryptocurrencies are so far following the same path as dot-com stocks during the 1990s. From 1986-2000, Microsoft went from just 10 cents a share to over $50. As the charts below show, the company’s stock also experienced a great deal of volatility during this high-growth stage, just as cryptocurrencies do today.
Eventually, assets can become way overpriced as more and more people get involved and the market reaches maturity. And, that is when it is time to get out. Whether the cryptocurrency market will also become a bubble is not something we will know for many years. Blockchain technology is in its infancy. It is just beginning to get attention from the general public, companies, and governments. According to a World Economic Forum Survey, most experts believe that it will not become mainstream until 2025.
A lot could happen in the next few years. Many experts believe that the greatest amount of growth has yet to be seen. It is predicted that the market cap for all cryptocurrencies, currently at $85 billion, could reach $1 trillion, perhaps much more.
Investment legend Michael Novogratz believes they will be worth around $5 trillion by 2022. Saxo Bank analyst Kay Van Petersen believes that the market cap for Bitcoin alone could be worth $1.75 trillion in ten years, which would put each Bitcoin, currently worth $2,300, at a price of $100,000.
A long-term investment in cryptocurrencies shows keen insight about the potential of blockchain technology to leave its mark on the future. The blockchain enables industries to increase the speed of transactions, reduce costs, eliminate intermediaries, improve security, digitize assets, and implement better bookkeeping. Just as the Nasdaq has a variety of stocks from different companies, the cryptocurrency market has hundreds of digital currencies representing various applications of the blockchain.
If you have not invested in cryptocurrencies yet, it is not too late; in fact, it is still just the beginning. Understanding the underlying blockchain technology and the history of dot-com stocks will help you survive the volatility roller coaster and reap great wealth.
I completely agree with your point...I started investing in cryptocurrencies recently...the reason I'm banking on cryptocurrencies is their fundamental and futuristic technology...not all the cryptocurrencies are going to be successful, some will fail. But, as an investor I believe doing fair bit of research and then investing in the company will always prove profitable in the long run.
In what kind of cryptocurrencies do you see the most potential?
And if you have a little time you could spend, why do you see potential in them?
Hi @nicetea! Here are 12 cryptocurrencies with great long-term potential: https://steemit.com/cryptocurrency/@hollyjb/12-promising-cryptocurrencies-to-invest-in
I strongly agree which is why i trully beleive the buy and hold method since 2015 and it has been paying out greatly 🤘
#upvoteforupvote Exactly this is the best time to be in Buy More Currencies Now for good wealthy tomorrow
This is a great post, thanks for writing it! Totally agree, the ride may be bumpy but we are heading up. This tech is game changing and is here to stay. Top priority for us investors now should be finding and holding onto BTC and some of the other top coins.
new to cryptoworld...hope to earn good...from it. lets see what happens
perfect man
great time right now to invest, while the market is down.
This post received a 4.9% upvote from @randowhale thanks to @hollyjb! For more information, click here!
2017 has been so good for cryptocurrencies that I had to get back in. Back in 2014 or 2015 I got too puzzled at what was to be the next big thing that I just decided to put my bets on Digibyte because of the great development team.
Now the picture is more clear again, although these new ICOs make it confusing again. Anyway, I'm not betting on them, because I just don't understand them. I believe one needs to invest in what they believe in and understand.
Anyway, I think anyone jumping in currently will see great rewards, unless they start to get too smart as I did at some point and started investing in what I though could make money quickly. Well everyone needs to test the waters at some point to realize what actually works and what doesn't.
The cryptocurrency world is just full of temptation, but knowledge always wins temptation and "FOMO".