Crypto has been around for a long time, but it wasn’t until recently that it made its debut on the global market, with the leading cryptocurrency, Bitcoin, reaching somewhere around $68k/coin.
However, many have witnessed the downfall of these digital currencies several times, and due to the volatility of this asset, a lot of investors aren’t too keen on investing in it, no matter how promising it may seem.
That being said, market analysts are hailing crypto as the next big thing, with some even saying it’s akin to gold in terms of being a store of value.
Because of this, cryptocurrency, and particularly Bitcoin, have been dubbed “digital gold” and they’re definitely worth looking into if you’re looking to freshen up your investment portfolio.
Keep reading and find out what you can do to maximize your returns and offset any losses you may experience when investing in cryptocurrencies.
Why is it so popular?
For the most part, crypto is popular among younger people, who see it as a way of achieving financial freedom, and after so many success stories involving digital currencies, other investors have also taken an interest in the asset.
The volatility is one of the main things that drives people away from the crypto market, and if you look at the data from the past couple of years, you’ll notice that its value had risen to $3 trillion in 2021, only for it to drop to $1.98 trillion today.
That’s not to say it won’t rise again, and market trends have shown that crypto has a tendency to bounce back, which makes it an excellent long-term investment.
However, most people think of digital currencies as a way to make a quick buck, and while that may hold true for some coins, it’s not exactly a rule.
The future implications
Even though it’s only been around for a short amount of time, crypto has been well-received, for the most part, and numerous coins are now accepted as a form of payment.
In fact, El Salvador adopted Bitcoin as a legal tender, and while it did send ripples through the local markets in the country, it may still take some time for the trend to catch on.
However, using crypto as a form of payment and investing in digital currencies are two very different things, and we’re going to be focusing on the latter.
Several coins are trending up at the time, and one of the more notable ones is Dogecoin, which received the endorsement of Twitter CEO Elon Musk, who even decided to make it a valid form of payment at every Tesla dealership.
His support for the coin has caused it to skyrocket in value several times, and with him becoming CEO of Twitter, the coin only continued to grow.
Select a legitimate exchange
Crypto exchange platforms are the places where you’ll be doing most of your investing and trading, and it’s important to find one that’s both favorable and trustworthy enough for your needs.
A good thing to take note of is how long the platform has been around, and if you find that it’s fairly new, you should remain cautious.
At the time, some of the more used platforms are Binance, FTX, and Huobi, all of which have millions of users and operate in several countries.
You can verify all the details for the exchange on their official website, where you’ll also find details on the team running it and the amount of trading volume on the platform.
Most of the platforms out there will claim to provide the best service, and it’s up to you to carefully examine your options.
FOMO is your enemy
Finally, you should never be too emotional about your investments, and the same goes for cryptocurrencies.
Oftentimes, people make rash decisions because they fear they’ll miss out on an opportunity to make it big in the crypto market, and that’s exactly the type of people malicious traders prey on.
Running after every token that’s getting pumped is only going to lose you money in the long run, as these projects have proven to be short-lived and more often than not, part of an elaborate scam.
Instead, you should focus on making use of the many investment opportunities that pop up, and while they may not allow you to make a quick buck, they will give you long-term security and set you up for years of returns.
Keep track of the highs and the lows on the market and set your goals accordingly, and if you do, you’ll begin to see some major changes for the better in your finances.
Bottom line
The world of crypto investing is a complex one, and while the assets may not seem like a lot when taken at face value, their potential is practically endless.
Bitcoin is the leading crypto on the market and numerous analysts believe it’s going to reach $1M/coin one day, and while that may not be for at least another decade, it makes it an incredible long-term investment for anyone looking for something new.