With the rising popularity over the years in regards to cryptocurrencies, many people tend to wonder if investing in cryptocurrencies is the right fit for them. Common concerns raised among the community fall around the volatility of the market as well as comparisons to other — more traditional — forms of investments. Cryptocurrency investing, just like other forms of traditional investing, isn’t a one-size-fits-all. The character of each individual will be a defining point on whether crypto is what’s right for them or not.
Despite the critics, the skyrocketing popularity of Bitcoin and how its price growth has propelled it into the spotlight has really shown that trading cryptocurrency will become a widespread trend. Along with the constantly growing community of crypto enthusiasts, are we about to witness the change in modern economy and financing as we know it? Are we witnessing the rise of a new era that will plunge us into the ultimate realm of the digital age?
It definitely seems like it. But coming back to the question — “Is cryptocurrency trading right for YOU?” May it be your rising interest in crypto trading or a lingering feeling of FOMO, whatever it may be, we’re here to break down the core components of why everyone should consider trading cryptocurrency.
A Trend Bound to Fail or the Catalyst to Bring Us to the Ultimate Digital Age?
Since the day of its creation in 2010, Bitcoin became the world’s first digital asset to generate an entire ecosystem of cryptocurrencies. For a period of time, it grew an underground following of investors who showed keen interest in its future and its potential to replace the physical monetary system, while simultaneously having traditional investors watching curiously for its development.
You’re in Control
The key to Bitcoin’s success is the superiority of the Blockchain Technology. With such advanced technology created, digital transactions can be made much faster and safer. Blockchain encrypts data, and these blocks containing data are stored in a decentralised manner — which means that not only is there no singular control over these blocks, but it also means that the information cannot be deleted or forged.
This is a huge leap from banks, where a majority of people place their funds — which can be robbed or simply closed after claiming bankruptcy. When you invest in cryptocurrency, your money stays yours as long as you want it to. The most important point to this would be to make sure that you work with reliable exchange platforms such as Tradence and only use official crypto wallets with multi-layer protection.
Fluctuation and Volatility — Does It Really Matter?
Contrary to popular belief and sensationalised market swing headlines put forth by the press, the reality is that standard markets typically only fluctuate by 1 or 2% on a daily basis. The average investor’s portfolio rarely gets affected by these fluctuations, and most personal investors think about the market’s long-term prospects.
For those who aren’t very familiar with the crypto market, it’s a close resemblance to the standard market… if the standard market were on steroids. Put into consideration these statistics: On June 25, 2019, Ether’s price was $335.10. By July 16, 2019, its value dropped by 40%, making it only worth $205.86. On February 7, 2019, Bitcoin’s worth was $3,451.55. By July 9, 2019, it had a 3.6x growth, making its value worth $12,647.99.
The mindset that people have to have when considering entering the crypto market is a completely different belief market. To be successful with crypto, people can’t just read on it as an investment, but rather also a belief system. That will allow users to develop new tolerance levels for “very low” lows and the potential for “very high” highs.
It is also important to remember that your investments in crypto shouldn’t be where you get your emergency funds from, and it shouldn’t be treated as an equivalent. Knowing this, and building up tolerance for the potentially rocky journey, the fluctuation and volatility will seem like a passing tide in the long run.
Overview
With everything we had to say about the potential that cryptocurrency has for the future of finance, it all boils down to whether or not you personally feel that it’s the right type of investment for you.
When you’re ready to enter the world of cryptocurrency trading, make sure you sign up with us on tradence.io and we’ll be sure to help you with all the ins and outs.
