Hello, welcome to my blog.
Today I want to tell you some very important things you must know before you invest your money in Cryptocurrency. I’ve received several questions from people who wants to earn a living through Cryptocurrency and I think it’s time I put up some things for you here. I want you to get the accurate knowledge about Cryptocurrency before putting your hard-earned money into it.
Let me go straight to the point. Here are 10 key things that you must know before you invest in Cryptocurrency.
#1. Cryptocurrency is a digital money.
The word Cryptocurrency is actually a combination of two words “Crypo” and “Currency”
Crypto means coded, secured or encrypted. So Cryptocurrency is an encrypted money. It’s a digitally secured currency. In other words, Cryptocurrency only works in a digital system. And because the world’s economy now rest on digital systems, it gives Cryptocurrency a kind of “perpetual” existence. This is probably the reason why many forecasters has predicted Cryptocurrency to be the future of money.
#2. Cryptocurrency is not owned by any national government.
While many nations are legislating against the use of Cryptocurrency within their jurisdiction, others are gladly embracing and welcoming the innovation. Whichever way, the fact still remains that Cryptocurrency is not under any national government— not even China. Cryptocurrency works on digital systems which are decentralized just like the internet, which means it can be accessed by anybody anywhere in the world. This is the more reason why no government has been able to own it. The crypto market is a free market.
The only thing government does is to put some laws in place that will help regulate the use of Cryptocurrency so as to control fraud, money laundering and other cyber offenses.
#3. Cryptocurrency cannot be completely banned by any government.
Even as some countries are making moves to stop the use of Cryptocurrency, this has not proven to be successful. Since Cryptocurrency is not owned by government, the Blockchain programers has the freewill to modify the systems as it will benefit the users.
Many crypto trading platforms has now added the P2P mode of trading which allows crypto traders to buy and sell cryptocurrencies without directly using their banks. So this has made it difficult for governments to completely ban Cryptocurrency.
#4. There are over 2000 cryptocurrencies in use.
This is surprising right? Yea. That’s because we only hear of a few ones. There are actually over 2000 different cryptocurrencies used around the world and each of these cryptos have their varying values. So before you start investing in Cryptocurrency, make sure you find out which one is best for you.
#5. Cryptocurrency is highly volatile.
Volatile means it is subject to “uncontrolable” changes whether positively or negatively. Sometimes last month, Bitcoin was $64000 (that’s about #30 million) but as at today, Bitcoin is around $35000. This is to tell you that Cryptocurrency can rise very high and also dip very low. Some cryptocurrencies can rise as high as 2500% within a week. Now that’s a wow! But you really need to be up-to-date if you’re investing in Cryptocurrency. But if you can’t do the stress it’s something I can help you with. Contact me if you need to know more or drop a comment below.
#6. Many businesses are now using Cryptocurrency.
This is one of the reasons I will advise you to invest in Cryptocurrency. Many businesses around the world are using Cryptocurrency. They buy and sell with cryptos. This gives Cryptocurrency a brighter future in our economy. I have personally worked for some companies and they pay me with cryptos.
#7. China is the largest crypto miner in the world.
Yes. You know China has always been leading in almost everything in the past few decades. I think the technological advancement of China is what gave them upper hand in the crypto market.
#8. You can start investing with almost any amount.
This sounds cool, right? Yes. Before I started investing in Cryptocurrency I used to think it’s a business for the rich guys but, from experience, I’ve learnt that you can start Cryptocurrency with almost any amount. What you just have to do is create your crypto wallet, search for Alt coins (Alt coins are cryptocurrencies other than Bitcoin) with very low value and buy them. I’ve personally discovered that the cryptocurrencies that do well in the market are usually those starting with very low values. Example is Dogecoin.
#9. You don’t necessarily need to trade.
That’s just the truth. I know the reason why many run away from Cryptocurrency is because they don’t have the knowledge about trading. But you can still make money from crypto without even trading. Just buy and hold. That’s all.
But if you need someone to help you trade I can do that for you anyway and you’ll still make your extra cash.
#10. You may not make profits immediately.
This is the honest truth many people won’t tell you. The crypto market is just like any other markets. You shouldn’t expect to make profits immediately because sometimes it can take a longer time for a crypto to boom. So just be patient when you invest but also know when to sell your assets and when to buy.
When you start a new business, you won’t expect to be making huge amount of profits immediately but with time you will. That’s the same way with Cryptocurrency investment.
Alright. That’s a wrap on this for now. I believe you’ve learnt something. Please leave your comment below. Subscribe to get more financial update.
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