Cryptocurrencies did reasonably well in 2017 and have been on the rise since the beginning of 2018. It has been continuously attracting more investors since ever. Most of the new investors face trouble in figuring out how to start investing in cryptocurrency. This blog will help you on how to invest in cryptocurrency and what are its advantages as well. The first cryptocurrency, Bitcoin was founded long back in 2009 and went unnoticed till 2013. However, after the year 2013, it saw a massive growth of investors. As a result of this, various cryptocurrencies have entered into the market.
By the end of 2017, the total market capital worth of cryptocurrencies was $ 450 Billion. The cryptocurrency market is not just of Bitcoins anymore. More players like Ethereum, Litecoin and Ripple have entered the market and performed really well. One of the primary reasons why Cryptocurrency gained so much popularity in so less time is because of Blockchain Technology. It is a secure and trustworthy way used by Bitcoins and many other cryptocurrencies to keep the user data and transactions safe.
Read also: What is cryptocurrency & its uses
Guide to invest in Cryptocurrencies
Before you spend in any of the Cryptocurrencies, you should be clear-headed about your investment goals. You should have a coherent vision of how long you want to keep your money invested and amount of profit you are satisfied to take.
If you are hoping for a cryptocurrency to perform better over a longer period, you should go for long time investments that range from 6 months to 1 year. You can also plan to hold the amount even beyond that, say 5-10 years. In a longer term, you have the liberty to decide whether you want to invest in one go, or in instalments. For investing in a cryptocurrency for a long-term, make sure that a company’s technology is better than the others, have a strong team of developers and founders, have defined goals and are capable of handling your investments. The best options for investing in a long-term investment are:
- You don’t have to keep watch over the market all the time.
- Cryptocurrencies are tended to perform better in longer duration.
- You can wait for the market to take arise if there are lower rates of returns on your investment.
Read also: Pros & cons of Blockchain technology
Short Term Investments
The second possible option available to you is to become an investor in the short-term investment plan. The period for this type of investment may range from a few minutes to a couple of months. Just as in case of short-term of investment you must be clear about your goals with a valid reason for investment. You should have a clear head of how much profit is satisfactory for you and how much loss you are willing to handle. The best options for investing in a short term investment are:
- Low market capitals
- High trading volumes, lots of investors are buying and selling cryptocurrency every minute.
- Look for trending cryptocurrencies on social media and current news.
- Invest in an ICO or who have just finished their fundraising through ICO. The price of Cryptocurrency is much lower here.
Read also: Blockchain- Future of technology
While Cryptocurrencies can be a massive source for earning but you may lose your money as well. SARA Analytics as a cryptocurrency development company predicts that the market may come wrong. Nobody has the idea of what is going to happen next in the finance market. It is better to make a proper market study before you start dealing in Cryptocurrencies, this way you will be able to take decisions about your investments.