In the last few years, cryptocurrency has been a popular topic in the financial world.

Bitcoin (BTC) and Altcoin, such as Chainlink (LINK), Ripple (XRP), and Ethereum (ETH), still top the list because of the support they render to different projects. Bitcoin has been leading the market game since 2017 when its valuation neared $20,000 per coin. That said, digital currency is no longer a fad as many people look to this space as an investment because of the speed of transactions, transparency, anonymity, and security, to name a few.

Have you considered investing in cryptocurrency? There are several reasons why you should consider this type of investment:

  • The minimum fractional amount helps everyone to invest in cryptocurrencies without any investment barrier.
  • All the transactions are recorded over Blockchain to render full transparency to the investors.
  • Cash-out your assets anytime, as cryptocurrency exchanges function 24/7.
  • Cryptocurrencies offer lower transactional fees as compared to traditional investment assets.
  • Privacy in transactions.
  • Because it’s secured by cryptography, it is highly secure and nearly impossible to counterfeit or double-spend.
  • Because it’s decentralized, this digital asset is not controlled by governments and other central authorities.

While there are many reasons to support investing in cryptocurrency, there are also things to be on the lookout for:

Featured articles

Fragrance Guide: Picking the Right Scent For You

Understanding Blockchain Technology & Its Investment Potential

  • Understand that major world events can affect the price of cryptocurrencies. At the same time, it can prove advantageous if you want to buy specific cryptocurrencies at lower prices.
  • Although highly secure, hacking events have happened in the past that can pose risks to cryptocurrency trading. That said, make sure to trade over secured connections such as Coinbase, Kraken, and eToro, to name a few.
  • If dominating cryptocurrency like Bitcoin cracks, then it could harm the value of Altcoins. Presently, the market is strong. Even so, always DO YOUR RESEARCH!

Concerning doing your research, there are “Do’s and Dont’s” to keep in mind before investing in cryptocurrency:

                            Do                              Don’t
* Always have a backup strategy * Follow mass media hype
* Use two-factor authentication * Invest more than what you can afford to lose
* Trade on reputable exchanges like Coinbase   and Kraken * Fall for the Ponzi schemes or market scams
* Use hardware wallets like BitLox and Keepkey * Store your backup unencrypted online
* Use a Password Manager * Panic and stress with market fluctuations

Factors for Deciding which Cryptocurrency to Invest Into

  • Choose your level of risk as almost 5,392 cryptocurrencies are being traded. Bitcoin and Altcoin, like Chainlink, XRP, and Ethereum, are a few examples of stable currencies to invest in.
  • Take the time to READ THE WHITE PAPER created by the founder of the specific cryptocurrency you’re interested in. For example, check out the Ethereum white paper. Also, read their blog and queries by their customers. This will give you greater insight into which cryptocurrency to invest in.
  • See if a particular cryptocurrency is created for a specific market solution. Also, do a background check on the visionaries. If their vision is not clear, then it may be a red flag.
  • Educate yourself on cryptocurrency underlying technology. For example, be knowledgeable on solid, innovative technology (e.g., smart contracts, Ethereum Virtual Machine Technology, and Blockchain integration).
  • Conduct independent research for lesser-known cryptocurrencies or Altcoins.

In closing, consider cryptocurrency as your next digital asset that is going to flourish over time. As we have discussed the risks and rewards, and do’s and dont’s, be aware of what to look out for. No doubt, putting in the work of doing your independent research will give you a slight market edge, as you’ll have additional knowledge that can help you identify the best cryptocurrency for your investment goals.

Tagged in: