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June 12, 2021

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Should You Care about Crypto?

2 min read
Should You Care About Crypto

Should You Care About Crypto

Should You Care about Crypto?

The cryptocurrency market is one of the hottest markets in the world today!  It’s the dawn of a new era of decentralized platforms for applications that run exactly as programmed without any chance of fraud, censorship or third-party interference.

Even if you don’t currently invest, or if you have never traded or bought any Bitcoin, Ethereum, Litecoin, etc., in your life take the time to at least educate yourself on the cryptocurrencies and the possibilities of the blockchain each token represents.

What is Cryptocurrency?

Cryptocurrency is a type of unregulated virtual currency. It works with the help of blockchain technology, a distributed network with permanent records. The data electronically entered into a blockchain database, such as a cryptocurrency transaction, is on that blockchain forever. Many people value crypto for its secure encryption and decentralized nature.

Volatility of Cryptocurrency

The cryptocurrency market is insanely volatile, and you shouldn’t treat it like it’s a stock.  It’s the wild west, but that makes it adventurous. If you’re intending to buy as an investment, just know there are many risks associated with cryptocurrencies.

It’s possible to get rich by investing in cryptocurrency; but you could also lose all your money. How can both of those things be potential outcomes? The answer is, like most investments, crypto assets come with a host of risks but also big potential rewards.

Cryptocurrency Valuation

Cryptocurrency can be a good investment if you want to gain direct exposure to the demand for digital currency and the projects or businesses they facilitate.  This is the most important part about evaluating these as an asset class.  What exactly am I buying into? 

Is it an algorithmic scarcity that creates demand for the coin?  Is it an interface where the projects on the blockchain are fueling the demand for the coin?  Is it neither and nothing more than pure speculation?

Getting Started with Cryptocurrency

The best investment in cryptocurrency is you, personally, learning about cryptocurrency. Take the time to research what’s out there and how they compare before you commit any of your hard-earned money to an asset that could disappear overnight.

You do not have to have money invested to watch the market moves, get comfortable with certain platforms that you are interested in, study charts etc. Limit your monetary exposure until you are comfortable with what you are buying and why you are buying it with proper entry and exit parameters. 

This article is for education purposes only and is not a recommendation to buy cryptocurrency.  Investing in cryptocurrency is extremely risky. Please be aware of the risk factors including the high level of volatility, the uncertainty of future regulation and policy changes, the possibility of hacker attacks and failure for the exchanges to support market movements.

Millionaire Mindset Life

Submitted By Mike Amos

Founder and Active Contributor of millionairemindset.life

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