After the recent sharp increase in bitcoin, that saw bitcoin growth in 2017, a lot of people have shown increased interest in bitcoin and all forms of cryptocurrency investment.
Why not, seeing as everybody is interested in finding several ways of making money apart from their main income strategy.
The point is that there is barely no reason for not investing in cryptocurrency.
For virtue of people who are looking for reasons to join or not to join, we wish these two points will suffice and let you make up your mind to join
- Best Investment Option
When you come from a country like Nigeria, there is virtually no better option like cryptocurrency investment
There is no lending forum that guarantees you more than 10% increase in returns per month
The savings plan of banks does not give you more than 5% interest rate on your savings
The Federal Government of Nigeria’s treasury bill which is the best so far stands at 18%
when you realize that the best is just about 18% but inflation is standing at 15.9% and has even been as high as 18.72%
- The Currency of the Future
While it looks like fiat currency or money as we know it now can never fade, it is necessary to know that changes occur and it is possible for cryptocurrency to take over.
Years back, it used to trade by barter and in African countries, it was cowries before we started using fiat money.
Time will also come when people will prefer to use cryptocurrency for their everyday transactions seeing as fiat money has its many downsides.
The only issue is that knowledge is very necessary if you want to succeed as there is no business that cannot lose money.
That is why we decided to bring some necessary investment tips for anyone starting or wants to gain more information on investing in cryptocurrency.
INVEST IN THE LOW ONES
Bitcoin is the most popular crypto but is not the best investment option especially as a beginner unless you are super rich with a lot of money to invest.
For a beginner, it is wise for you to start with the low ones that have huge potentials.
A reason you want to do is that you realize that people who made ton loads of money investing in bitcoin were people who invested when it was very low.
Investing when it is small means that your money grows when the money grows
But, bitcoin is also growing? You may ask; Yes.
But it is easier for another good coin to go from $1 to $2 than for bitcoin to go from $15,000 to %30,000
While the former seems like it is small, in actual terms, it is the same amount of money you make when the two happens.
Also, you realize that buying the cheaper coins are cheaper than buying bitcoin
When a coin is $2 when you put $1000, you get to buy as much as 500 of the coin but when you use the same $1000 in bitcoin, you get 0.15 coins which is not so comforting.
Another thing worth knowing is their uses.
You should always read to know what they are used for
Knowing what they are used for makes you forecast if they will stay for long or if they have a greater propensity to crash soon.
It also lets you know if they have the ability to go very high.
Example, coins are used for a whole lot of things ranging from finance to health, technology, entertainment, e-commerce and so on.
When researching a coin, it is necessary to know if the industry it deals with has potential.
Industries like entertainment don’t have as much potential as finance or technology or e-commerce.
WHO IS ON THE TEAM
Great things can die under someone who can’t handle it.
The team and their partnerships are what determines if the coin will live or die.
Imagine if Dangote invests in a Nigerian business, everybody will rush to invest in the same company because they believe he has seen something about the company and he won’t let the company die, seeing as his money is involved.
That’s the same way it is with cryptocurrency investments
When people realize that bigwigs like Jack Ma, Bill Gates, Richard Branson etc are involved with a coin, they know it will succeed and they put their money in the coin.
UTILISE ICO’S (INITIAL COIN OFFERINGS)
If you by any means no about the normal stocks and Initial Public Offerings that companies do, it wont be hard to understand ICO’s
They are the cryptocurrency equivalent of brick and mortar but seems a little bit better.
In ICO’s, they mostly give out free coins to people who join and it is at the cheapest at that moment.
It is possible to get a coin at $0.5 in such settings.
You can start with investing in Digitex that will launch on the 15th of January here
STAY IN THE LONG RUN
This is one of the major reasons people lose out on making huge returns from cryptocurrency investments.
While I understand that it is possible to have an urgent need that needs money and the only solution is withdrawing from your cryptocurrency wallet.
Or that you need to withdraw your initial amount and keep the rest in your wallet.
Only in such cases do you rush to withdraw your money if not stay it is best to leave it for a long amount of time, possibly years.
Some people withdrew their money just before the bitcoin boom of 2017 and had themselves regretting their actions.
DON’T PUT MORE THAN YOU CAN LOSE
Even the most educated investors lose money in their investments.
The best businessmen also lose their money in wrong transactions.
No matter how learned you are in any business (cryptocurrency included), it is very vital you make plan B in the event plan A goes wrong.
Some ways you can do so is by:
- Removing your initial money after you have recovered it.
Let’s say you put in $1000 and after one month, the equivalent of your coin becomes $1500.
At such point, you can withdraw your initial $1000 and leave the $500 to grow.
- Have another source of income.
Except you want to make crypto trading your full day job (in which case, you might not need to read this), it is not wise to have cryptocurrency as your only source of income.
You use the extra money that you generated from your main source to invest in cryptocurrency.
Care to share with us other tips on cryptocurrency investment worth noting or things you have learn’t from the article?