Cryptocurrency investment has become the new deal in the financial market. The popularity of this investment field has attracted a lot of interest with people asking “what cryptocurrency investment is all about.”
From a few questions I have encountered and my experience in the field, I have gathered three essential lessons that crypto investors should know. Many people go out there and buy a cryptocurrency of their choice, expecting the coin to make them billionaires overnight, or expecting nothing but continuous rise in price.
The complete belief in the cryptocurrency makes people sell their properties or even use their life-saving earnings to invest in them. This post seeks to give three lessons focusing on the aspect of cryptocurrency investment that deals with buying digital assets and selling them when the price rises.
Do Not Expect 1000% Rise overnight.
Even though the cryptocurrency market is highly volatile and can rise by an unexpected magnitude, no cryptocurrency investment scheme can give you a 100% guarantee of a massive return within a short period after investment. There has been a lot of times experts have predicted an insane rise in the price of Bitcoin and other altcoins but ended up moving in the opposite directions.
John McAfee, a renowned cryptocurrency expert, predicted that Verge would trade at $15 by mid-2018, but what happened? Verge ended up trading at $0.002. The cryptocurrency market is very responsive to harsh environments, ranging from government crackdowns to cryptocurrency exchanges filing for bankruptcy. Regardless of these, the market can make a bull run at its own time.
Do Not Invest in Cryptocurrency With Life Saving Earnings
In late 2017 to early 2018, there was a report that a family had sold their properties to invest in Bitcoin. Around that time, Bitcoin was trading above $10,000. Their reason for making this bold decision was probably influenced by how Bitcoin made a great run from $2000 to over$10,000. That was a dangerous decision. It is right that risk-taking is part of the investment, but weighing the cost and benefits of something before making a decision is essential in investment as well.
The price of Bitcoin fell deeper and deeper after investing in the asset with money made from selling their properties. No matter how much you expect the digital asset to rise, invest an amount you can afford to lose. Bitcoin can crash like the Dutch Tulip Mania.
Expect a Price Fall After Investment.
After I successfully guided a friend to buy Digibyte, he asked me that “So when will I get rich?”. This question runs through the mind of many cryptocurrency investors, and they feel disappointed and deceived when they realize the price is not making any movement or the price is continuously falling.
When you invest in any digital asset, expect a price fall and a market pullback. The cryptocurrency market does not rise continually without a fall. This kind of feature is dominant in Bitcoin price history.
However, know that a cryptocurrency can rise by twice the percentage it fell.