Over the past few years, cryptocurrencies have been a topic of intense discussion. How many times have we heard the story of someone becoming an overnight millionaire, and at the same time heard the story of someone losing hundreds of thousands of dollars in order to make huge profits?
So if you want to invest in cryptocurrencies in a secure way, this guide is perfect for you. The purpose of this guide is to help educate investors as much as possible and reduce speculation in the market.
If you want to learn more about cryptocurrencies themselves, you can check out the beginner course on cryptocurrencies.
How to invest in cryptocurrency 101:
The fact that you are reading this guide shows that you are interested in investing in cryptocurrencies. These immutable and exchangeable crypto tokens promise to become hard money and unmanageable currencies worldwide. Their advocates believe that in the future, Bitcoin or other cryptocurrencies will replace the euro, the US dollar, etc.
In addition to what has already been said, there are three main good reasons to invest in cryptocurrencies.
First, because you want to hedge your net worth in case the dollar depreciates (many people think that a dollar depreciation will inevitably happen at some point). Second, because you support the social vision behind cryptocurrencies-free and hard money worldwide.
However, there are very bad reasons to invest in cryptocurrencies. Many have fallen victim to the hype surrounding every cryptocurrency bubble. There are always some people caught by FOMO (fear of missing) and buying in large quantities at the peak of the bubble, just hoping to make money quickly without knowing cryptocurrencies at all. That is a bad reason. Don’t learn before investing like this.
Early investors in Bitcoin and Ethereum made millions of dollars in net profits. If you see the chart below, you will know exactly what we mean.
In the year from December 2016 to December 2017, Bitcoin skyrocketed from $ 750 to a staggering $ 10,000! This means that anyone who invested $ 10,000 in December 2016 will recover an incredible $ 133,333 in 365 days. In fact, by the end of 2017, the total market value of cryptocurrencies has soared to a staggering $ 500 billion.
Stories like this are flooding the Internet, and more and more people are joining the hype of cryptocurrency to get part of the cryptocurrency cake. But as more and more speculators flood the market, inevitable things happen.