Ever since Bitcoin was introduced to use back in 2010, it has been on a rollercoaster of a journey. Earlier when it was new to the market, it seemed to be the intellectual commodity of the smart ones.
As time flew by, Bitcoin values hit new heights by being at around 20,000$ in 2017. During these times, many other cryptocurrencies had begun to flourish, and some companies had opened an Initial Coin Offering on their stock. This publicity got a bad name later when the Bitcoin value went down to as much 3,000-4,000$ the next year. This again was cause for concern but since then, these values have gotten better over the last two years. So, the question now is, should you invest in cryptocurrency? Here we have a quick guide about investing in cryptocurrency/bitcoin on https://bitcoinchampion.io/
Treat It Like the Stock market
One of the basics of stocks that everyone knows is that you should not invest all your money in one place. Over the years, various big names like Warren Buffet have explained the importance of diversifying your investments so that you stand a chance to win more and lose less.
By not putting all your eggs in that one hopeful basket, you immediately stand a chance to lose less. Initially, a lot of people purchased one unit at ICO's and when the market deflated in 2018, they lost a lot of money. The problem that no one seems to understand is that the Crypto market is like the stock market and it also is not anything like the stock market.
Price fluctuations in the normal stock market are never this high and with time, these will stabilize but for now, Crypto is a volatile market. When the market is not stable, it only makes sense to opt for index investing and outsmart the market. One big incentive for doing this is to help your taxes.
The problem at hand today is that crypto costs a lot and most people do not have the fund to diversify their investments. Through apps like Snowball, the market should be able to offer a more convenient and low-risk method of investing very soon.
Where is the Advisor?
Unlike a traditional stock market scenario, it is a tad bit difficult to know whether your crypto advice is smart or not. Crypto is largely still misunderstood by the public and the people who can help you with it are a few in number. This means that the people who can help you with it can be trusted, right? Not exactly.
Due to the various restrictions imposed on crypto, we are yet to see widespread availability of these advisors who can help you with your investments.
There are various platforms that offer you their services today, but it is still difficult to filter out the good from the bad. Thankfully, the SEC has been lending their stamp of approval to some professionals known as RIA's (Registered Investment Advisors). There RIA's have a fiduciary obligation to give you the best monetary advice at any given time. This does make things easier because now, you have someone you can trust.
Crypto is thought to grow exponentially in the future and in the future market, these regulated advisors could become a very big deal. People love a stamp of approval, especially in these volatile markets.
No Pain No Educational Gain
The problem that we are facing today is that everyone wants to hop on the crypto bandwagon, but no one wants to do their due diligence. Over the last few years, we have seen that crypto is going to become bigger and it is only a question of when.
Given the circumstances, you would think that you should begin educating yourself in the field but on the other hand, people are just taking a leap of faith while dreaming of money. Crypto is a volatile market and needs to be understood well. This information will serve you well today and prove to be invaluable for you tomorrow.
Today, there is even a website called Coinbase which offers to pay you to learn about crypto. With these many opportunities at hand, you should start educating yourself before diving into the vast field of crypto.
