So you've decided that you want your share of the pie.
You’re not alone. Coinbase, one the leading crypto exchanges , saw over 100,000 signups per day in the closing months of 2017, collecting over 13 million users in the process.
Binance, another popular exchange temporarily closed its doors to newcomers due to the overwhelming demand.
Almost all popular exchanges have struggled to cope with surges in popularity for cryptos at some stage, indicating that the crypto world has started to find its feet and people are seeing it and blockchain technology for what they really could be: a groundbreaking and revolutionary technology that could go a long way in improving the way we currently do transactions, business, supply chain management and more.
The market can be driven upward and become temporarily over-inflated at times of great hype. New all-time price highs get reached, only for the market to undergo a correction and a steep decline back down. This can be a rude awakening to those new to the game and surely has many running for the exit door right away.
Let's get one thing straight, if a 50% drop in the market has you selling off all your assets then investing in crypto isn't for you.￼ ￼
The crypto market is still in its infancy, but the huge influx of new accounts reminds many of the early stages of internet adoption (think internet ‘95). If it’s anything to be compared to, then the next 5 years should be an interesting ride.￼ ￼ ￼
In summary, the market is volatile at best and will probably continue to be so far many years to come, so if you can't handle the crazy ups and downs then it's time to look elsewhere.
Is it because you want to get super-crazy-rich like that old friend from school who you never see any more that first purchased bitcoin when it was worth a penny? Or is it because you've just discovered blockchain technology and want to be a part of the next big thing? Maybe you simply stumbled upon it in the media recently and decided to splash a bit of cash and see how you go?
Whatever the reason is, you need to ask yourself a few fundamental questions before going any further. There is no right or wrong answer; the most important thing is to be perfectly honest with yourself, and understand your motivations for investing in crypto.
If your answer to any of those questions was anything close to “dunno, but I heard it can make you rich”, then you’ve got a lot of reading to do before you should even contemplate parting with your money.￼
It’s okay to know nothing if you’re just getting started. The vast majority of people still know close to nothing about cryptos, so taking your first step into the land of magical internet money will get you further than most.
It’s easy to hear stories about teenage bitcoin millionaires and fall into a depression spiral about your life achievements, but just like lottery winners, these people are one-in-a-million.
Just like a real lottery, it’s far easier to lose your money than hit it big.
But unlike a lottery, a bit of knowledge goes a long way in the crypto world.
Now, I’m not asking you to research and understand the fine intricacies of the code behind Bitcoin or other alternative cryptos. However, doing your research to understand the technology, the market, and specific coins will allow you to make much more informed decisions.
Answering the above questions about any of the cryptos that you’re willing to invest in will allow you to make a more informed decision before investing.
It can be the difference between investing in a potential long term winner or a something in the crypto space we like to call shitcoins (coins that are scams or have no real value or use case).
Please note that there are a lot of cryptocurrencies available that have potential use cases in the future. This does not mean that any of the current top 20, 30 or 100 will exist 10 years from now. It’s therefore a bit of gamble. But odds are, if we compare this craze to the dot com bubble, the next few years could reveal the crypto equivalents of Amazon or Ebay etc. Who knows, they could already be out there.
Just remember that investing in the market is a gamble, and you shouldn’t be playing with money that you actually need. If you’re struggling to pay for rent, fuel or are in any sort of debt that you can’t get a grip on then stay well clear of this space until you’ve become a responsible adult and sorted that shit out!
Whilst times have been prosperous recently in the land cryptos, the recent drop in the market is a reminder that this could all go to shit very quickly! That’s not to say it will. I personally believe that blockchain technology and cryptos are here to stay for good. Like I mentioned earlier though, this does not mean that any of the current available cryptocurrencies are the answer! All we can do is hodl and hope!
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