Now before you read this post, I have to remind you that I am not a financial advisor and these are just my opinions. If you really want to invest in cryptocurrency, seek advice from a financial advisor.
An Introduction to Cryptocurrency
Cryptocurrency is here to stay. There are a growing number of rags-to-crypto-riches stories all over the internet. Recently, John McAfee, from the McAfee software company, came out and said Bitcoin will reach $1 million by 2020, which is a bit ambitious. The most significant predictions of bitcoins are $1 million per coin by 2034, $100,000 by 2025, and $50,000 by 2020… And a few upcoming altcoins (alternative cryptocurrencies) will rise beyond anyone’s imagination in terms of percentage growth. Cryptocurrencies are fantastic but remain a complicated concept to understand. What do I mean?
When the internet first came out, a lot of people didn’t realize that the internet was not a “whim.” Companies like (Time Warner, and Americna Express), initially didn’t believe in the internet, but now they are both “multibillion-dollar companies” in this very internet space. No one imagined that companies like Uber, Google, Facebook, and Amazon would grow to be worth over a trillion dollars combined.
As of this writing the Cryptocurrency market just broke $600 billion in value and could soon be more than a trillion dollars. When people were saying bitcoins would break $10,000 in value by 2018, most were skeptical. As of this writing, bitcoin is trading around $18K per bitcoin. According to Wikipedia, in 2016, the 18 top fiat currencies around world measured at $4.7 trillion in circulation and China was not included in this calculation. So, if an idea, or a coin, solves the problems created by these currencies, how much will that coin be worth? Your guess is as good as mine. Cryptocurrency solves problems such as security, double spending, the risk of inflation, money forgery.
The good news about Cryptocurrencies
Cryptocurrency is super-complicated. Most people just don’t understand. It is, however, the future, so you should do your best to get familiar with it. 3,000 years ago, humans relied on priests to cure their sicknesses, and God (or gods) to win wars. Until a hundred years ago, humans depended on bullets to fight battles.
Today, we fight wars, not with bullets but with data, just as; we saw a trace of “data wars,” in recent social changes around the world. Money has followed the similar evolutionary trail. Data, “Cryptocurrencies” are the next generation. Cryptocurrency will soon become an alternative to fiat currency. Many people believe that cryptocurrency is a firm and natural evolution of money.
How cryptocurrencies solve money problems
First, you need to understand what “blockchain” is. Whether you invest in bitcoins or other cryptocurrency, blockchain technology will affect your future. I’ve added two Youtube video links to help clarify what this new technology does and how they are using this technology to solve the existing problems in commerce today.
Before you get started
Now, you know the basics, the next is to invest in cryptocurrency. As of this writing the safest way to get into Cryptocurrency is through an exchange called Coin Base if you are located in the United States. There has been a lot of people who lost money from accounts getting hacked and people doing shady things. Coin Base is not perfect and their customer support isn’t the greatest. If you compare with what’s out there, its as good as your going to get and probably the safest you will get. So if you want to get started use this link and setup an account. When you do, you and I will both get $10 each once your deposit of $100 or more clears. Click here for the link.
Also, after you click on the link and setup your account, do not send any money in until you get familiar with Coin Base. You can watch this video to get started:
Here are the things to keep in mind if you want from long-term success in the market.
- Treat cryptocurrency like any other investment:
Each cryptocurrency is different and I suggest you do your research on what you invest in. Make sure you know what you are getting into.
- Trading is on the rise:
If you total the value of all the cryptocurrency on the market currently it has a rough estimate of $600 billion. Coca cola’s market is about “$180 billion”. Tesla is “$50 billion.” Which shows cryptocurrency won’t disappear anytime soon.
- Market cycle and volatility:
There is still a lot of hype that is driving the market up and a lot of drops fueled by fear and uncertainty. It is not uncommon to see coins double in value in a day or two then drop again. Some day traders do well in these scenarios but for many who try to make money on the daily ‘up and down’ usually end up getting bloody. Remember, the market can be volatile and there is risk, so only invest what won’t hurt you and it’s probably a good idea to invest for the long run.
- Focus on solving problems:
No matter the speculated profit of a particular cryptocurrency, you can’t just buy it and sit back to watch it grow; especially, if you are thinking long term. Focus your energy on finding cryptocurrency that solves problems in the real world. The more significant problem it solves, the more viable it is as a long-term investment.
Always try to limit your overall risk. Try not to get wrapped up in the daily ups and downs. Think long term. Only invest in three to five cryptocurrencies that you have researched well.
I hope this was helpful.
Find below, all the links to everything I talked about above:
To sign up to Coinbase Click Here. Both you and I will get a $10 sign up bonus after your initial deposit clears.
Disclaimer: “I am not a professional financial consultant.” Seek professional advice from a financial advisor before investing in any cryptocurrency