What is cryptocurrency? Cryptocurrency is a collection of binary data which is designed to work as a medium of exchange where individual coin ownership records are stored in a digital ledger which is a computerised database using strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership.
1. It Has Never Been Easier To Invest
The prospect of making the leap into cryptocurrency can be a daunting prospect at first. However, times have changed and there is now much more information out there to enable investors to quickly navigate the world of cryptocurrency without many of the previous barriers to entry. Coinbase has a huge network of around 10 million investors and is one of the most popular platforms at present, allowing investors to easily purchase Ethereum, Litecoin and Bitcoin to name a few.
2. The Long Game
As with any investment, you need to keep focused on the long-term viability. If you become obsessed with short-term loss, every variation in price will have you worrying that you’ve made the wrong investment decision. This could cause you to panic sell at a lower price than you bought it for, when in reality, holding until the price recovers, and then went even higher, would have been the more sensible move. The cryptocurrency-market is volatile and price fluctuations will always happen, with some more concerning than others. The recent crash made even the most hardened investors a little hot under the collar, but two weeks later Bitcoin bounced back with predictions of higher price surges in the coming months. You should always be looking at investments over the longer term (5+ years), as this is where the true gains are likely to be made.
3. Digital Currencies Are The Future
Bitcoin has led the way so far with its domination of the cryptocurrency market and it may be the most recognised coins. The moment to reap the largest rewards from Bitcoin has already passed, with those who invested in the unknown coin many years ago having made eye-watering returns. Investors who are looking for those big returns must expand their horizons by investing in alternative coins such as Ethereum and Litecoin, which are two very promising cryptocurrencies. At this point, it is worth noting that with any investment of this kind, the risk remains extremely high and you must be prepared to lose the entire investment. It is therefore only advisable to invest what you are happy to lose, and what is affordable. The road to cryptocurrency-investing success isn’t guaranteed, so it should only form part of a wider portfolio of varied-risk investments. You should also seek independent advice before making new investment decisions.
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