Some would argue that cryptocurrency is the new gold. And if you really think about it, you would agree too. Besides being able to pay for goods and services anywhere on the world, you can also earn money trading.
And here are 5 reasons why should invest in cryptocurrency in 2021.
Being that cryptos have been around for some years, a lot of people believe it is too late to make money from it. This is far from the truth.
While it is unlikely that Bitcoin will increase by 20,000 like it did in an eight-year period before it dropped back, it is still projected to increase in value. Investing now will still rank you as an early investor as it is expected that crypto will be around for decades to come. Why?
Because more and more people who were skeptical at the beginning or starting to realize the cryptocurrencies aren't going anywhere and have begun to pick interested in it. For this reason, it can only grow higher in value. There's more than enough time to make money from cryptocurrencies, as the future of this digital currency looks very bright.
In the 4th quarter of 2017, a lot of people were of the opinion that Bitcoin's exponential growth wasn't sustainable. This was true. But since then, there has been a significant level of stabilization.
Lessons have been learnt and investors are much smarter than they were in 2017. The regulations surrounding crypto trade are also much clearer. What we're trying to say here is that investing in crypto has never been this safe. In fact, if investors knew what they know now back in the 4th quarter of 2017, they would have been 10 times richer.
Even if you don't make as much money as you would have liked from cryptocurrencies, the chances of being struck with a massive loss is much lower than it used to be.
By now, it should be clear that blockchain is here to stay. It isn't just individuals that are investing in it, corporate bodies and banks are also leaning towards its direction.
A lot of projects that are in existence today will eventually fizzle out. This is because they don't offer a working product or their working products have no real-life application.
As for blockchain projects, there are many that exist today which have real-life applications and they will be here for a long time.
As we just mentioned, even banks are getting involved, and that's great news.
Just like stock, buying low and selling high is the key to such investments. This sounds like a no-brainer, yet many people get carried away and make trading decisions based on their emotions. Some people who dived into the cryptocurrency rush by the end of 2017 still find it hard to accept this simple trading logic.
Even though crypto prices have dropped in the past, they are now stable and can be forecasted. This means investing in it is a whole lot safer than it was in 2017.
This is not to say that there isn't still a risk, it's just like any other business. However, the risk is significantly lower than it used to be. The prices may still drop but not by as much as it did years back.
As long as there is information available, an investor can forecast prices and decide whether to buy, keep or sell.
A lot has changed since the massive rush and crash of the cryptocurrency market. Things have stabilized and the attitude of investors have changed towards making wiser and smarter decisions. One of the biggest issues with the fourth quarter 2017 Bull Run was that one could invest in any coin even if it had no use and still make a lot of money from it. It was not a long time for the "market insanity" to be taken and appear. This was a result of investors being so used to seeing prices go up, that a slight drop in price would lead to a panic and prompt them to sell.
Years later, and the weaker hands are mostly out of the business. Those who stayed have become wiser regarding when to buy and when to sell.
Cryptocurrency market are very volatile by now, make sure to make your own research and trade responsibly.