You may have been toying with the idea of investing in cryptocurrencies but maybe have been a little in the dark as to what they're ll about. You will undoubtedly have heard of Bitcoin and Ethereum. It's important to recognise that advocates of such cryptocurrencies, or virtual currencies if you like, strongly believe that they have the potential to become so dominant in the future that they will even substitute the Dollar, the Euro, the Pound and so on, becoming the currency of choice globally.
Silent revolution
You could think of it as a silent revolution. If Bitcoin eventually does replace the currencies and monetary reserves of central banks or ascends to the currency of choice in international trade, holding Bitcoins would turn out to be a very rewarding investment indeed. Should such happen, the value of one Bitcoin would be exceed 10,000 dollars. As you can see, the potential to make a lot of money is a very real possibility.
Past successes
Going on past success will illustrate the potential to be made in investing in cryptocurrencies such as Bitcoin and Ethereum.Since 2011, Bitcoin increased in value some 25,000 percent, an increase that can't even be represented on a standard linear chart but requires an exponential chart to illustrate its skyrocketing value. Additionally, Ethereum's value soared by 2,700 percent.And as a whole, the total cryptocurrency market climbed a staggering 10,000 percent since 2013. It's easy to see why this may be considered something of a financial revolution going right on under our noses. Of course the obvious question arises as to whether you can trust an asset which has enjoyed such a stratospheric takeoff. Surely it can't last, can it? The truth is, it would have been the best to invest one or two years ago, but with expert guidance it is still highly feasible to build a formidable cryptocurrency-portfolio right now.
Risks
We would be lying if we said investing in cryptocurrencies is a surefire way to riches. There are risks. It is an investment after all. Areas are still unregulated. Exchanges can get hacked. It's not impossible that cryptocurrencies are outlawed.Given it is a high risk investment, and we wouldn't want you to believe it isn't, then the golden rule is only invest as much as you can afford to lose if things go awry.
Why invest in cryptocurrencies?
- It is predicted by many experts that the Dollar will fall eventually, and hedging your net-worth by investing in an alternative currency will likely pay rich dividends when this happens.
- Secondly, there is the ethical notion of cryptocurrency being a global currency for the whole world.
- Thirdly, you simply understand how it works and are attracted to the technology behind the currency.
Limitations
Of course, there are some limitations when investing in cryptocurrencies too. People very easily get swept up in the hype and pour all their money into cryptocurrencies while there is a bubble leaving themselves wide open to losing everything. Don't get swept along with the hype.
Seek guidance
It's far better to seek expert guidance and practical advice when thinking about investing in cryptocurrencies so you can make a measured and logical decision at the right time, and one that will reward you with a return. With the right guidance enabling you to fully grasp how cryptocurrencies work, you vastly increase your chances of success in a very exciting investment opportunity .
