5 things to know before investing in cryptocurrency
Many of you may think of investing in cryptocurrency. But since investing in cryptocurrency carries a risk, many people prefer to make their way to banks rather than embark on a risky venture, while most of us sit confused between making the decision to invest in cryptocurrency or leaving the idea.
In this article, we'll give you five things to know before investing :
- The cryptocurrency market is volatile
The first and most important thing one must understand before investing in cryptocurrency is to realize the fact that this market is highly volatile. It is not surprising that the price of an cryptocurrency is reduced by between 10 and 20% in one day.
Many believe they are willing to take the risk of investing in the cryptocurrency, and all it takes is a bad day to figure out how much volatility they can actually afford.
- More than one option
Most people only talk about Bitcoin, but they are only one of the many currencies available on the market today. Bitcoin may be the dominant cipher currency at the moment, but its share in the cryptocurrency market has dropped dramatically.
If you want to continue using Bitcoin it is your business, but there are other options available such as Ethereum, Ripple, Litecoin , Monero ...
Since the cryptocurrency is a digital currency, there are always safety risks, most notably piracy. It is best to save and store the cryptocurrency itself instead of using cryptocurrency exchange services.
A backup can be created and stored on a USB key if needed, and a free program can be downloaded to store the encrypted currency. In this regard there are many options available.
- Hide identity
Cryptocurrency by nature is based on anonymity. This means that each recorded process is encrypted so that one can not know who actually holds a large amount of cryptocurrency.
This makes investing safe online and tax free in most countries around the world. You can record a fourfold increase in your investment and withdraw your money without being responsible for paying one cent to the government.
- Best time to invest
There is no such rule when it comes to investing in cryptocurrency. Coded currencies are the best investments at the moment, but it is advisable not to buy during the peak of the bubble.
The best time to invest is when the price is stable at a relatively low level. Understand the fact that encryption bubbles do not look like traditional financial bubbles, so think about your decisions accordingly.
This was a list of the five things that one has to know before investing in cryptocurrency. good luck!