Well, Nowadays most of you guys heard about Cryptocurrency or bitcoin because it also one of the trending issue in the world which is not related to covid – 19. In this article, we are going to tell you about all the significant details of cryptocurrencies and investment strategy as a newbie or beginner so stick to the end. So let’s see beginners guide to cryptocurrency-
Here the first and foremost question arises that what is cryptocurrency? Well, it is not some kind of paper notes or metal coins printed of the nation’s presidents and founders. Cryptocurrencies are digital currencies or assets in which you can invest for time being. If we talk about the origin of cryptocurrency then these digital currencies started in the year 2009, the first cryptocurrency was Bitcoin which is still the most valuable crypto coin in the market, the bitcoin was issued or started by Satoshi Nakamoto and today more than 6700 cryptocurrencies are flowing in market and expected to release more in near future.
In simple words, you can say that cryptocurrencies are another medium for buying and selling goods and services, and many companies granted cryptocurrency as an exchange of medium but they accept some currencies like major and prominent ones. You can’t even imagine that the total market capitalization of all cryptocurrencies has reached to soring skies, according to recent data, the total worth of all cryptocurrencies is more than 2.2 trillion USD which is far greater than many countries GDP including countries like Canada, Australia, and UAE. Some of the most prominent cryptocurrencies are Bitcoin, Ethereum, Dogecoin, and Ripple. Well, these are all those cryptos that make the highest profit sometimes more than 500 x. When Bitcoin has launched it cost merely 1 dollar and now it worth more than 35 lac ( on average) sometimes it is more than 45 lac. Ethereum is also one of the highest cryptocurrencies and many people are interested in it and keep investing in Ethereum.
Well many people say that Bitcoin or other cryptocurrencies are highly risky and not have the potential for the future, even the business giants like Warren Buffet has also said that people should not be carried away by these currencies as they are not real assets and just a freaking temporary hype, he also said that people who are investing in such kinds of digital assets should also ready for loosing their all money and in our opinion he is not right, people think they are so clever and smart and by investing in these cryptos they will always make out a profit but it is not true at all, yeah it’s true that many peoples have become a millionaire because of these investments but they are those people who invested in these assets when they were just launched so they will not endure loss after 10 years because they invested very little.
Now we are going to talk about the investment strategy for young fellas who want to dive into this crypto world, before explaining things, I just want to say that Bitcoin or any other asset is not some kind of mythical mirage that would create a huge fortune for you in just a couple of days.
You must have patience and a big risk appetite otherwise you are just going to get massive tension on your head for a long time. Now, let’s see some of the effective moves for young ones who want to invest in cryptocurrencies.
- Before investing in cryptocurrencies, you must do a technical analysis of that crypto coin in which you are going to invest, you must gather all details about this specific crypto-like when it started, profit and revenue graph year by year, countries opinions on this crypto coin because governments take play a very influential role in these cryptos.
- You should not invest more than 5 percent of your income in cryptocurrencies because the rates are so volatile and you could lose so much of your money when the price moving and in some cases, cryptos take so much time to rise again.
- You should only invest in the most stable and eminent cryptos like Bitcoin and Ethereum because these are some of the safest cryptos which did not have rapid price fluctuation, you should not be carried away by other cryptos just because their return is so damn high or skyrocketing because these cryptos are very unstable and could lead your entire money in vain.
- Do not breed your greed, I have seen many people who did not sell their cryptocurrencies even the returns are damn good and in some cases, the returns are more than 500x but those people still did not sell them because they are just wanting more and more and it would just lead them in an awful situation because cryptos starting declining and sometimes reached to negative and all those people could not make money just because of their greed to earn more so you should not let your greed on your head and make the decision wisely and sell your cryptos when they are making good profits for you. In my opinion, 50 to 70 x of your investment is a good return and you should sell your crypto holdings when you make that much profit and again reinvest in cryptos.
- Now we are going to tell you the last but not the least factor which will really help you to make good enough profits from cryptocurrencies which is patience, you must have patience and should not be baffled when the market is going to down and down, all you just have to wait for some time until your losses become profits because you all know that there is not all or nothing things in the world which also applied on cryptocurrencies and after some point of time things are going to back to normal, You should wait for at least 2- 3 years if you really want to make good profits from your investments and believe me my friend this single thing – the patience would let you to success.