Hey, welcome to this new article. In this article, I’m going to be talking about how you can identify if cryptocurrency is a really good investment that you can invest; that’s what I’m going to be covering right in this article.
So if you have been wondering how you can start investing in cryptocurrency or you have been asking yourself is cryptocurrency a good investment to invest in,
if yes, I got You covered because I am going to talk a lot more about cryptocurrency and also try as much as I can to show you if cryptocurrency is a good investment that you should look into and invest on it. Or if it is not good for you to invest in the cryptocurrency space.
So that you can decide at the end of the day and think about what you should invest in, either cryptocurrency or other things; if that’s what interest you, stick around till the end of this post and read through all, I’m going to say about my experience and a lot more.
You can learn from what I have passed through in terms of investing in cryptocurrency and what I have learnt on the journey since I started investing in cryptocurrency.
Is Cryptocurrency Worth Investing In?
The whole thing is that cryptocurrency is one of the best things you can invest money in and make a profit in the end.
But the most interesting and important part is that you will need some knowledge that will help you make a good decision on the type of cryptocurrency that you will be investing in.
You don’t just wake up and start investing in cryptocurrency; they are some factors and some things that you need to consider before you can invest in any cryptocurrency okay,
something like the cryptocurrency market cap, the amount of transaction that is being completed on the ecosystem of that particular token or coin that you are about to invest in,
it’s one of the things that you also need to consider before you invest in any cryptocurrency. They are a lot more things that you also have to consider while trying to invest in any cryptocurrency.
So like, as you can see, I’ve tried to mention three things that need to be considered before you decide whether to invest in cryptocurrency.
Another thing you also have to consider is that you need to check the roadmap of that particular coin and the people behind this project. As a CEO, you need to have good background knowledge about some cryptocurrency before diving in to invest in it.
That is my opinion regarding this particular question that I’m trying to answer, and you need to consider some things before you invest in any cryptocurrency. It’s very important.
Is Cryptocurrency A Good Long-Term Investment
to be honest with you, cryptocurrency is one of the long-term investments that you can invest and make a profit, but at the same time, it is also something that you can do today and lose all of your money in the nearest future,
which you use in investing in that particular coin or investing in the cryptocurrency space as a whole because when the cryptocurrency you have invested in has crashed, you will be left with only the token with no value.
So my recommendation is going to be that whenever you are going to invest in any cryptocurrency, be sure to do more research about every one of the cryptocurrencies that you are trying to invest in
so that you will have some backups that will help you to recover your money in the nearest future as a long-term investment if you are lucky enough to research and catch up with a good and reasonable type of cryptocurrency that is a good one,
you will be able to make a profit, and that is a type of cryptocurrency that can be known as a long-term investment that will generate profit for you in the future.
There are some cryptocurrencies that you can invest in today and wait for like 5 years, and it will skyrocket and make you a lot of profit
which you can now withdraw or cash out, and then you enjoy your money. Meanwhile, some cryptocurrencies you might invest in and end up losing all your money, which is your initial capital invested. Sometimes, the project might also crash because the people behind the project have yet to be able to accomplish what they wrote down on their roadmap.
That’s why you see some cryptocurrencies when they start at the initial stage. They will be doing very well, and everything will be okay, but as time goes on, you realize that the coin’s price has depreciated its value.
So that’s how some cryptocurrencies will end up crashing down to the bottom, and the investors will now lose everything, which is their capital, so be very careful whenever you want to invest in any cryptocurrency.
It’s better that you do a lot of research before you discover a good opportunity to invest in. That’s a good point to start when it comes to investing in the cryptocurrency space.
How Much Should I Invest In Crypto?
This is one of the mistakes I made when I first started investing in the cryptocurrency space. I made this error simply because I needed to figure out what I should do then, so I lost a lot of money in the cryptocurrency I invested in.
That’s one of the reasons why I make it clear to us that it’s necessary for you to do some research to discover a good opportunity that will help you make a profit when you invest in it.
So this is my opinion regarding this search query how much should I invest in crypto?? The truth is that with my experience, I will also talk about this directly. You need to invest an amount of money that you will be able to lose.
When it comes to investing in cryptocurrency, it’s very important because you want to save money that you want to use for your school fees, your house rent money, even your feeding money, and your children’s school fees.
These are the money you need to preserve and not use them investing in the cryptocurrency space, expecting it to skyrocket for you to withdraw and use it for the purpose.
Then take some as your profits; it will never work this way. If it works this way for you, it is a lucky day. Normally, it will not work because you might invest in cryptocurrency today and you discover that when you check the coin,
you realize that the coin’s value has depreciated, which indicates that you have lost part of the capital you invested in the coin.
So in a case like this, what you do is for you to wait till they can appreciate again in value for you to be able to recover your capital and then, at some point, you start making a profit from it. That’s when you can withdraw the gain, profit, and money at once.
The most important thing about cryptocurrency is that you need time, maybe some years or months, for you to give the coin to be able to increase its value so that you’ll be able to make a profit right from the time you invested in it, you need to give it some time for it to increase in price, then you make a profit, and you withdraw.
so with my own experience, the highest amount of money you should invest in a crypto is about 1% to 10% of your income; that is why we are being told that we should not put all our eggs in one basket
I will not advise you to invest all of your money in cryptocurrency; invest some of your money in crypto, use some of your money to do other things,
feed yourself, pay your house rent, pay your school fees do a lot of things with the other part of your income use some part of your income to invest in crypto
if you want to invest in cryptocurrency and you should also be able to invest the amount of money you can afford to lose very importantly, and it will help you to be on the server side
Can Holding Crypto Make You Rich?
Yes, holding a cryptocurrency can make you wealthy to an extent you would never believe. But mind you, at the same time, having cryptocurrency can also make you poorer.
This is how it works if you invested in cryptocurrency known as bitcoin in 2009 and you hold it till 2020, that’s like 11 years; by that time, you would have been able to become wealthy
Simply because you bought Bitcoin when it was very cheap, as in 2009,
then you held it for about 11 years and then the price has appreciated and increased in value
when it gets to 2020 that time, you will have been able to make a lot of profit, and that will enable you to become rich,
so the whole thing is that if you invest early in any cryptocurrency and you hold the coin for some time
As far as the coin is a good coin that has a good reputation in the crypto market, you will be able to make a profit as time goes on in the future
Can You Lose Money If You Hold Crypto?
The answer to this question is straight forward you can as well lose money holding crypto simply because if you invested in a coin that is not good, which has no good reputation
And doesn’t have a good number of transactions in the Blockchain, they don’t have a good roadmap you will end up losing all your money just because you are holding it
as time goes on, people that have invested in that crypto will start withdrawing their money,
and that is what we call liquidity in cryptocurrency or a coin when the liquidity has been removed or withdraw the coin will have no value, and it will only remain the token that you are holding.
It doesn’t have value liquidity that gives value to a coin or token, so if the liquidity is being removed, which means people have to withdraw their money,
you have not started your own you are now left with only the coin in your wallet. The liquidity has been revoked or removed, so that’s how you can lose your money holding cryptocurrency
it’s also wise for you to make a good decision by researching to identify good projects, a good type of coin that you should invest in that’s pretty much what you have to do, and everything will be okay.
Is $10 Enough To Invest In Crypto?
Let me tell you that you can invest $1 and still make a profit. You can invest $3 to $5, and you still make a profit, but the most important thing is that the time you invest in that coin matters
if you invest in a coin as at the time it was $0.01 for each piece of the coin, then you hold it for, let’s say, about a year, and it starts growing up and increasing in value, you end up seeing the coin heading up to $1 each of the coin
that means at the time, you bought it for 0.01 dollars, and now you have been able to sell it at the rate of $1 for each piece of the coin
probably if you bought it with $3, that means you were able to purchase 300 parts of this coin as, at the time, it went up to $1 for each piece of the coin; by then, you have been able to make $300 in total
so your profit is $297. The same thing applies if you bought it for $10, which means you could accumulate 1000 pieces of that coin. When it gets to $1 for each piece of the coin, you can make $1000. Your profit is $990, while $10 is your capital.
So absolutely, yes, $10 is not too big or too small. You can still make a profit out of this $10 as initial capital, but the most important thing you need to know the good type of coin you should invest with that little amount of money that you have so that you’ll be able to make a profit as time goes on
conclusion
cryptocurrency is a very high-risk asset to invest in; you can make a profit, and you can as well lose all your capital,
things you should note is that when investing in cryptocurrency, don’t be greedy you have to be the focus and have a target for your investment
if you invested in a coin when it was at $1 for each piece, you should be able to target when it increases to $2 for each piece you sell some and hold some; the most important thing is that your capital has to be secure in any form of investment you have invested in.
Always do your own research and discover a good cryptocurrency that will help you make a profit in the nearest future.