It's "CRYPTO TIME"

This article will discuss the basics of crypto currency , what are its pros and cons and how can we reduce the risk associated with investing. Crypto currency, block chain, bit coin…. these words are buzzwords of the year. People are becoming millionaire , quitting their daytime jobs and spending their valuable time in trading cryptocurrencies. But is it really safe in trading or investing for long term in these cryptocurrencies. We all are aware with share market, the market that dominated the end of 20 th century, the market that produced millionaire like Warren buffet. Lets discuss about crypto currency and see if it’s worth investing in crypto’s.

In layman’s language crypto currency is a digital currency, the currency that exists only digitally and has no physical form.
Below, we take a simplified look at how cryptocurrencies work??.
Let’s say Alice gives 100 mangoes to Suzan, which happened in front of bob. After 10 days Suzan managed bob and claimed that this transaction never happened. Now Alice has nothing in her hand to prove her claim, but what if the news of this transaction is published on front page of the newspaper and distributed in the whole town. In this case do you think that Suzan can deny the transaction? This is exactly how the block chain works. In blockchain ledger of all the transactions is maintained and the same copy of the ledger is held and regularly updated by every node of block chain. If changes are made in the ledger it will be visible to each and every node verifying the transaction. So if someone controlling the node tries to cheat, it can be easily traced.
Pros:

1. Various cryptocurrencies have promising and great applications which can directly challenge big players and distribute benefit to masses. For example Crypto currency like siacoin is challenging big players in cloud storage like Amazon, drop box . Steemit will be a good substitute for current social media where contributors are getting direct benefit.
2. Transparency is another major advantage where no one can cheat the network without letting others know about it.
3. Transaction fees would be reduced considerably as this block chain will be maintained by community .

Cons:
1. Volatility: At present cryptocurrencies are volatile. However, putting money systematically, in the right crypto will reduce this volatility.

2. Competitors: So many cryptocurrencies offering almost same features. So it is very difficult to predict which is going to be there in long run.

Summary:
Some crypto currencies have been properly established while some are just trying to stand on their feet. Numerous people are joining crypto market every day all over the world . however supply of crypto currencies is limited hence rise in demand will continue in upcoming years. Lot of crypto currencies are even not listed on all exchanges so their availability to buyers will play a key role in rising demands. We expect crypto currency to become a part of our day to day transaction one day.
If you are planning to be investor of crypto currency for a long term then you can mitigate risk by

• Diversify portfolio- Cryptocurrencies are wonderful investment , but don't put all of your money in one crypto or in crypto’s based on same concept

• Do your own Research– Proper research should always be undertaken before investing in any crypto and investment should be made only in those crypto which you understand. Trust your inner voice. Do not let emotions cloud your judgment.
  

  
  Research should comprise of following
  • Does the Service provided by crypo has got long term prospectus.
  • Compare cryptos with other cryptos which have similar offering.
  • Team should comprise of professional have problem solving attitude.

• Never invest money you cannot afford to lose- Investing involves risk, and as said this risk can never be reduced to zero hence n ever invest money you cannot afford to lose.

• Be patient - It is said that “Great things come out of patience”. Many investors have been losing money due to their inability to control emotions .Hence, it is prudent to have patience and follow a disciplined investment.

• Constantly monitor your portfolio- We all live in a Global village hence any news or event happening in any part of the world might have an impact on the crypto currency. Hence it is advisable to regularly stay updated and Constantly monitor the portfolio.