Crypto’s surge in popularity has led individuals to believe a lot of misconceptions. One of the most prevalent being, that in order to invest in crypto, you must be an ‘expert’ in the field. However most people fail to remember the fact that crypto is still relatively new. There are very few reliable resources available, and even the ‘crypto whales’ are really just winging it.
Understanding the technology behind crypto is critical to making smarter investment decisions. Become a blockchain ninja today!
A Guessing Game
Although some cryptocurrencies have a better track record than others. There are very few indicators as to how any given crypto will perform in the future. Most people are quite literally throwing their money at a cryptocurrency and holding for the long term. Unlike stocks, the value of cryptocurrencies are not affiliated with any specific company. This means their value is extremely volatile, and a single tweet from Elon Musk can send the market spinning out of control.
Easy To Invest
With popular exchanges such as Gemini and Bitfinex, complete beginners are able to start investing with ease. These exchanges allow people without an understanding of blockchain technology to invest in a wide variety of crypto. Whether or not this is a good thing for the crypto community as a whole, nobody can tell for sure.
Similar To Stocks
For people who come from a background of stock investing or finance, the world of crypto could be a bit easier to understand. Most regular people also have a basic understanding of how investing works, this could help to flatten the crypto learning curve. However crypto is still a double edged sword, due to the fact that it can behave in mysterious ways. This is why many veteran investors such as Warren Buffet, strongly oppose cryptocurrency.
Easy to Diversify
Since many cryptocurrencies are quite cheap, investors are able to easily diversify their portfolio. Not only that, but many popular crypto exchanges allow investors to buy only portions of a cryptocurrency. This again makes it very easy for investors to diversify their portfolio, even if they do not have a large amount of money to spend.
Should Beginners Invest In Crypto?
Eager investors should approach crypto investing with caution, never spend money you aren’t willing to lose. Furthermore, it is important to always do research on a cryptocurrency before investing. Consider following crypto news and gaining an understanding of how the market fluctuates. The crypto market is no stranger to major dips. Have fun hodling!
One More Thing
If you enjoyed this article, please consider following me on Twitter: @natexlee.