INTRODUCTION
The short anwer is No. Cryptocurrency, being decentralized, has become an attractive investment instrument to many people, as it can be used to make transactions without going through a third-party intermediary.
Being a relatively low-cap industry compared to the stock market and the FOREX market, you get to see high volatility in cryptocurrency prices within a short period of time. This high volatility attracts a lot of uneducated investors who are looking for quick returns. This volatility means high risk; “it can either make you or break you.”
Can cryptocurrencies make you rich?
Yes, Cryptocurrency can make you rich if you invest in it wisely or, sometimes, if you are just lucky. Many people have become millionaires through investing in cryptocurrency, and many more have profited from it.
However, it is essential not to forget that cryptocurrency is a volatile asset, so you need to do proper research to understand the risks before investing. Hence, taking a complete course on cryptocurrency trading is ideal if you want to improve your chances of making it as a Crypto trader or investor.
You’ve probably heard a lot of bitter-sweet stories about cryptocurrency. Stories of those who became millionaires out of nothing and stories of those who lost all their life savings to crypto dumps. These stories sound scary or exciting. A friendly piece of advice is not to approach cryptocurrency trading as a get-rich-quick scheme.
How not to invest in cryptocurrency
- Don’t invest what you cannot afford to lose: When it comes to investing in cryptocurrencies, you should always prepare for possible loss. Sometimes people are so carried away with how much they want to make that they forget to ask themselves a very important question: Can I afford to lose this much?
This not only helps you mitigate potential losses but also helps you not panic-sell too early and miss out on potential profits.
- Don’t FOMO: The term FOMO means “Fear Of Missing Out.” Most times, people tend to follow the hype when it comes to investing. Unfortunately, this pattern is often misleading, as you can end up buying at the top of the market. Hence the famous saying “Be fearful when others are greedy”.
- Don’t over-leverage: Some platforms allow investors and traders to take up leverage in order to boost their profits. This also exposes the capital invested to a great extent, such that any little price movement could result in a permanent loss of funds commonly known as liquidation.
- Don’t trust social media influencers blindly: Most influencers on social media have been paid to promote certain cryptocurrencies. Often times, they don’t bother to do proper research about the integrity of the project before they recommend it to their followers, who then invest their funds and end up losing their money. It is always necessary to do your own research
How to Invest in Cryptocurrencies
Different investment strategies work for different people. However, this text outlines five strategies you can employ to make profitable investments in your cryptocurrency investment journey.
1. Get Proper Education; Education is the foundation for almost everything today, and cryptocurrency trading is no exception. Most newbies make a fundamental mistake: they start investing without taking the time to learn prudently. To start learning today, head over to www.roqqu.com to start learning with Roqqu Academy
2. Follow a Plan; Once you are ready to start investing after learning, sometimes it can become overwhelming because there are more than 20,000 cryptocurrencies out there to invest in, and like every other investment sector, some of the assets will wreck you.
With a proper plan, you will save yourself from reckless decisions, emotional trading, and careless mistakes that come with trading without a plan.
3. Play the Long-Term Game: Cryptocurrencies are relatively young and have a vast potential to grow massively; if you are impatient, you will miss out on a huge potential return. Playing the long-term game will also help you stay composed even when market conditions don’t favor you in the short term
4. Risk only what you can afford to lose: Don’t over-leverage; the market is highly volatile. This means it can go against you in the blink of an eye. To be safe, don’t risk what you cannot afford to lose
5. Ensure to take profits: Learn to take profits systematically. As you start making money in the market, do not leave everything in the market. Remember, cryptocurrencies are highly volatile; don’t sit and watch the market erase your unrealized profits
6. Use secure wallets to store your digital assets: Sometimes, you do everything right, but then your wallet could get compromised, and you lose your assets. Both centralized exchanges and decentralized wallets have their own risks. It is, therefore, necessary to understand how to use these platforms effectively. Many exchanges are out there, but regarding reliability, Roqqu remains outstanding.
Beware
There are a number of risks.
- Cryptocurrency is a highly volatile asset, and prices can fluctuate rapidly.
- The government or central bank does not back cryptocurrency, so its value is not guaranteed.
- Cryptocurrency is also susceptible to hacking and theft, so storing it in a secure wallet is essential.
- Finally, cryptocurrency is largely unregulated; therefore, learning about any potential scams or frauds is essential.
Conclusion
Cryptocurrency has the potential to make you rich. However, it is essential not to approach cryptocurrency investing as a get-rich-quick scheme. You need to understand the risks and do your proper research before investing.
There are other benefits to investing in cryptocurrency, such as decentralization, speed, security, and low-cost transactions. Cryptocurrency can also provide a hedge against market volatility, making it an attractive investment for many people.
