Should You Invest In Cryptocurrency?

Should you invest in cryptocurrency? 

Or have you missed the boat already?

Whilst some claim that there’s no better time to invest, there’s still a lot of critics saying that crypto is one the riskiest investments you’ll ever make. It really depends on a few key personal factors – which I’ll explain below. 

That’s why I’ve written this guide – because I want to help you discover whether investing in cryptocurrency is right for you personally.

4. Advantages Of Investing In Cryptocurrency.

  • checkNo Experience Needed: Investing in cryptocurrency requires zero experience and yet it’s still hugely profitable. For example, if you’d bought $1,000 of Bitcoin in 2013, that money would be worth $400,000 now! 
  • checkIt’s Not Too Late: The world of crypto is just getting started – and this is still just an emerging technology. Many analysts predict that the crypto market has plenty more growth to come. And we’re not just talking about Bitcoin either! There are countless cryptocurrencies available to purchase, most of which haven’t even begun to rise to their full potential. 
  • checkMainstream Potential: Whist some companies have begun to accept Bitcoin as payment, it’s still not hit the mainstream yet. It’s predicted that the value of cryptocurrencies are set to rise higher than ever before as thousands of companies begin to adopt cryptocurrency payments and incorporate them into their daily operations. There’s a huge amount of potential for cryptocurrencies to continue to rise higher than they ever before as more and more companies convert to cryptocurrency.
  • checkInvesting Is Easy: It’s incredibly easy to begin investing in cryptocurrencies with user friendly platforms like Coinbase. You can simply sign up, pick the cryptos you’re interested in and cash out whenever you want. 
  • checkInvest On The Go: Once you’ve invested, there are thousands of apps designed to help you monitor your investments straight from your phone, helping you track information in real time.
  • checkTons Of Helpful Resources: With tons of online resources, countless cryptocurrency blogs, news sites and ebooks available, it’s never been easier to learn about crypto. Check out my guide here if you want to discover the best cryptocurrency books of 2018.
  • checkYou Don’t Have To Invest Everything! You can invest in crypto with as little as $50-100. So if you just want to test the water, you don’t have to worry about investing everything you own!

5. Disadvantages Of Investing In Cryptocurrency.

  • closeCryptocurrency Is Extremely Volatile: It’s no secret that that cryptocurrency prices are incredibly volatile. Take a look at any Bitcoin chart over a few months and you’ll see that prices fluctuate on a daily – if not hourly – basis.
  • closeUnpredictable: The cryptocurrency market is still in it’s infancy and it’s therefore really hard to make accurate predictions about the future of cryptocurrencies. They have potential – but no one knows how far that will go.
  • closeCritics: Things like negative media & news reports about cryptocurrencies regularly cause the market to crash. And quite often, these media reports are based on over-exaggerations or speculation.
  • closeCryptocurrency Isn’t A Get-Rich-Quick Scheme: So many people are lured in by the huge profits crypto offers, but many lose out by buying in at ‘all time highs’, only to panic sell if the market dips. If you’re new to the game, it’s better to see cryptocurrency investing as a long-term earner – suitable mainly for those willing to sit on their investments for a while.
  • closeGovernment Regulations: With the potential auditing problems cryptocurrencies have, a lot of Governments are against the idea of adopting cryptocurrencies as mainstream currencies. Because cryptocurrencies are so decentralised – they remove the need for banks and third parties – they’re also seen as a threat too. 
  • closeEconomic: With banks carrying such a huge economic influence, there’s a possibility that cryptocurrencies will be rejected as a global mainstream method of payment – due to the decentralisation crypto offers.
  • closeIt Requires Confidence. Crypto is an emotionally draining game! You need to be prepared to be a patient, wait out your investments and handle the dips – at least for a short while until markets rise again. HODLing works, but you need to be able to handle the swings.
  • closeYour Investments Are Very Temperamental: Last year for example, China banned ICOs (a type of crowdfunding for new cryptocurrency launches). As a result, the price of Bitcoin plummeted by $1,000 within a matter of hours, showing just how unstable the market is. A little bad press has the power to send the price of coins sky-high or crashing down to rock-bottom. 

6. Should You Invest In Cryptocurrency Or Stocks?

There’s a few differences between cryptocurrencies and stocks that you need to know about:

  • Cryptocurrencies are more volatile than stocks, and therefore more opportunity for more profits.
  • Altcoins aren’t regulated – they’re decentralised. Whereas stocks have to follow more regulations and legal constraints.
  • Cryptocurrencies typically have a limited number of tokens e.g. there are around 21 million Bitcoins – whereas stocks can often be reissued.
  • Stocks are more mainstream and easier to invest in than altcoins.

Now there’s 1 more thing you need to understand:

Cryptocurrencies are built upon advanced technologies that have intrinsic value.

Unlike stocks, they aren’t assets whose worth relies solely upon investments. Their value is internal, and therefore (in theory) even if investors were to pull out, the price of cryptocurrencies wouldn’t plummet entirely.

7. The Vision.

Cryptocurrency isn’t just a currency, it’s also a vision.

This is more than simply an investment opportunity. Those creating and distributing cryptocurrencies do so with the intention of decentralising money, removing the need for banks and any ‘middlemen’.

Cryptocurrency founders aim to create currencies that free the individual from the requirement to use banks, and hand the power back to the consumer. Even if a particular cryptocurrency were to falter in value, the underlying vision would remain.

8. So Should You Invest In Cryptocurrency Or Not?

The decision to invest in any stock or currency comes with risks, as discussed earlier. Analyse your personal financial situation, your ability to withstand risk and whether you’re completely confident in your investments.There’s no doubt that cryptocurrencies have a bright future ahead of them. Sure, the crypto market is volatile and fluctuates often, in the long term they tend to increase in value.Plus, cryptocurrency is a movement as well as an investment. Behind the technology is a vision – to decentralise money and free the individual from third party influence. 

9. How To Make Your First Cryptocurrency Investment.

So now that we’ve look at the question of should you invest in cryptocurrency, you might be wondering how to buy crypto and make your first investment.I’d recommend checking out Coinbase – it’s one of the most popular coin exchanges on the market today. And with an app available to download on iOS and Android, you can track your investments within a matter of seconds.

Also, Coinbase let’s you track the live progress of your cryptocurrency investments, so that you can get live updates and make investing decisions on the go! 

10. How To Start Investing In Altcoins.

The downside of Coinbase is that it doesn’t have many coins to choose from.

So if you want a bigger range of cryptocurrency investment option, Binance is a great alternative to Coinbase that gives you plenty of choice. Plus, whilst Bitcoin is the most traded cryptocurrency on the market right now, it’s wise to diversify your approach to investing and spread your finances across multiple coins and multiple industries – so you might want to check out my guide to privacy coins.And just as the price of Bitcoin has risen to great heights, so too may new, up and coming coins see exponential growth in their value.

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