A lot of people today are looking for a chance to earn extra. Some are actually trying to work harder in order for them to earn some extra cash. For others, they take some investments and look for ways to make their money work for them in the long run.
You may have heard of cryptocurrencies. What are cryptocurrencies? Basically, these are currencies that make use of blockchain technology. Blockchain is basically a public ledger. It is immutable and is accessible to everyone. Here, everyone has to agree in before a transaction gets added in a form of block. And also, a block is connected to each other thus the term blockchain.
Now, one question that you may have already asked is if should you go for cryptocurrencies? A lot of people today are looking closely at the possibility of becoming a new-age crypto billionaire.
Which crypto should you go for?
There are thousands of cryptocurrencies that you could go for. In fact, the good news about cryptocurrencies is that you can have a good number of options. Do you go for Bitcoin or do you go for Ethereum?
You need to read the white paper plus the different reports regarding each cryptocurrency. You have to do your research before you even invest in one. Keep in mind that just like stocks, there are those cryptocurrencies that will not have any use in the near future.
Know when to buy
If you are going to buy a cryptocurrency, it is important that you do it when the price is still low. It is important that you don’t buy when it is already too high. Keep in mind that FOMO is something that can drive the price up. In fact, Bitcoin was able to reach near $20K level in 2017. However, it crashed and dipped by more than 80% in the following months.
Read the News
News will give you an idea regarding the latest developments in the industry. You have to understand that those who do not read the news will most likely make a mistake. You need to know what is happening in the crypto market. Is there an increased adoption on cryptos because of economic instability? Or perhaps, was there a development in the regulatory field that could drive the adoption of cryptocurrencies?
In it for the long run or just a short term investment?
Now, you also have to be clear whether or not you will be in it for the long run or not. If you are in it for the long run, you will have to make sure that you don’t invest everything that you have. Also, you shouldn’t be rattled in case there is a correction such as an 85% nose dive from its all-time high.
For those who are in it for the long run, there is still a risk that the next bull run will take a long time. If you are going to just put your money in crypto for a short period of time, you need to realize that you shouldn’t be greedy. For instance, at least 20% profit will already be a good deal.