Getting Started With Investing in Cryptocurrencies
Why Investing is Important!
There are few reasons why should start investing one of the most compelling reason is not having to work your entire life, let the money work for you as warren buffet said If you don't find a way to make money while you sleep, you will work until you die, you can choose different investment vehicles to grow your wealth such as stocks, certificates of deposit, or bonds
Cryptocurrency as a new Asset class
Cryptocurrency is a new asset class in the market, the cryptocurrency market has made me a 5,982% ROI in just under a year, and $100 invested in bitcoin turned to $75 million in 7 years.
When I first started taking an interest in cryptocurrency I thought I was so lost in this huge sea of unknowns. But if you look at history that is how a technology behaves in its early years not that easy to use, difficult to understand the first computer was as big as a room, it was very difficult to describe internet to people in 1990s
As the tech literacy of the population increases, acceptance of crypto as a legitimate store of value follows, and it boomed. What we know for sure is that people who were once skeptical of Bitcoin and the technology behind it are slowly understanding and getting increasingly involved with crypto. As at the time of writing, the market cap of the entire crypto space is at 500 billion USD(at the time of writing). It was 40 billion just four months ago. What would it be four months from now? Foreign exchange Market is worth $5.3 trillion I would not be surprised to see cryptocurrency market cap above 2-3 trillion mark in the coming 3-5 years
Current Makeup of the Cryptocurrency Space
You would have heard of Bitcoin and the altcoin, altcoin describes every single cryptocurrency except for Bitcoin. Altcoins are referred to as Bitcoin alternatives because, at least to some extent, most altcoins hope to either replace or improve upon at least one Bitcoin component. These altcoins are gaining market share at an alarming speed. Ten times or more growth has been observed in a time span as short as six weeks.
Cryptocurrencies as Stocks
The currencies we know are referred to as ‘fiat’ by the cryptocurrency community. Although having ‘currency’ in its name, cryptocurrencies share more similarities with stocks than currencies. When you are buying a cryptocurrency you are actually buying a tech stock a part of block chain or piece of decentralized network
Here are the four questions I ask myself before investing in any tech startup
These four questions are the start of my research into the state of the company
Happy Investing!