The idea of investing for the average person can often seem like a daunting prospect. Many people are put off by the idea of investing their hard-earned money. Not only that, but the increase in digital currencies like Bitcoin and Ethereum adds further confusion as to whether this is a good place to start a portfolio.
The beginning of 2017 was an incredible start for Bitcoin. In March, it rose to a record high of $ 1,350, triggered by the SEC’s Securities and Exchange Commission decision on the first Bitcoin exchange-traded fund (ETF). However, when March ends, the Bitcoin price is below $ 1,000, according to coinmarketcap. The price value fell due to the SEC’s rejection of the ETF and the sale of investors as there is ongoing communication about a potential Bitcoin hard fork.
A few months ago, Bitcoin reached its all-time high of $ 20,000. Now Bitcoin is currently worth $ 8800 after having been in a long bear market, due to a combination of different circumstances, but the most important was the regulations surrounding cryptocurrencies. But while the currency is prone to fluctuating prices, some may still consider it an interesting asset for investment. Despite excited posts from Bobby Lee, the co-founder and CEO of BTCC, who predicted a bitcoin price of between $ 25,000 and $ 50,000 in 2020, investing in Bitcoin is not for small souls. Knowing when to buy is crucial because you want to buy low and then sell high, be prepared for huge fluctuations in value.
While it may be too late to see a significant return with Bitcoin, there are other coins on the market that show promising moves and may be able to follow the path Bitcoin has taken. Ethereum is the second largest cryptocurrency after Bitcoin, with a market value of $ 55 billion. 1 Ether is worth just under $ 570, considerably cheaper than Bitcoin, and still has a lot of growth potential.
Ripple, the third largest cryptocurrency with a market value of $ 27 billion, is currently valued around $ 0.70. Certainly not bad to buy in, as the coin was at $ 2.34 in early January and was around $ 0.20 two months before. As you can see, this market is very volatile.
When should you invest in cryptocurrency?
Rule number 1 is that it is never too late to invest, which can certainly be applied to the crypto world.
Given its relatively short lifespan, new investors can only discover cryptocurrencies and see their potential benefits, as well as what their risks may be and what to look out for. Since there are hundreds of altcoins (alternative coins) available waiting for your fiat money to trade, crypto experts recommend that you “become a sponge and learn as much as you can about space.” “Because it is so new, it is very easy to believe in promises from not so well-known companies because of a lack of knowledge or because it cannot be compared to anything else.”
If there are any coins you are thinking of investing in, you should read their whitepaper to find out / understand exactly what they are doing and what they plan to do so you know where you are putting your money.
Cryptocurrency investing in 2020
The cryptocurrency space is still “very young” and this market has enormous potential for growth. ” While Bitcoin cannot be hacked (as far as we know), manipulated or altered, it is still vulnerable to exchanges or wallets. If you’re interested in crypto and looking for a way to start your portfolio, doing cryptocurrency can be a viable option. As the saying goes, don’t put all your eggs in one basket; diversification is key.
There is no perfect timing and we are not able to give you the ultimate advice. Please do your own research and you will understand pretty quickly what is beneficial for you and what isn’t. If you are looking for a long term holding and want to earn yearly rewards on your crypto, have a look into the EUM staking program.
This is the simplest way for beginners and highly secured due to our KYC process and our integrated coin insurance.