28 Feb Cryptocurrency: Millions are talking about it
What is Cryptocurrency?
Cryptocurrency (which is also known as digital currency) has indeed been creating a lot of hype online since late last year. It has gained a respectful amount of attention globally because of its rocket amount of profits traders could earn within a short period. If you are already investing in cryptocurrencies or considering to do so, you may have already heard about Bitcoin, the first cryptocurrency created in 2009. If you have not heard about cryptocurrencies after all the media speculations, please get out from under that rock!
Is Cryptocurrency REALLY profitable?
Whenever I talk to a family member or friend about cryptocurrency, they often ask what they stand to gain in this investment before I could go on explaining my reasons for doing so. Being an amateur investor myself and have gone through a couple of market corrections in the last couple of months, cryptocurrency can be profitable and unprofitable at the same time. All investments contain a range of risks, but there are specific measures which you can adapt to avoid. Being a savvy investor and new in this investment marketplace, I set a couple of ground rules for myself to follow strictly to avoid making wrong trading decisions. For instance, time to time I will ask myself whether I am emotionally prepared to incur losses or potentially losing everything I have initially set aside to invest in cryptocurrency? Personally, I am prepared for it because I have conditioned myself only to spend the amount of money I can lose.
Cryptocurrency sounds like a significant investment, but it seems too good to be true.
There are two sides to every investment, and it is recommended for every investor to understand both sides of the stories before making a judgment. In the last five years, bitcoin price has gone through significant price shocks due to the government crackdown, criminal activities and hype-makers. The crazy fluctuations of price changes make it clear that crypto-currency is exceptionally volatile.
Why and what causes the sudden hype about cryptocurrency now?
FOMO – Fear Of Missing Out. Cryptocurrency is not issued hence unregulated by any central authority. It makes funds transfer between two parties in a transaction easily with minimal processing fees and much shorter waiting time as compared to traditional transfer methods. Since cryptocurrency uses cryptography for security measures which is uneasy to counterfeit, it has gained a lot of public attention to using the anonymous nature of cryptocurrency transactions to host criminal activities such as money laundering. From a humble investor point of view, he/she can take advantage of the crypto platform to make a lot of money fast. After numerous news publication sighting millionaires overnight in the last couple of months due to crypto investment, it has tickled the curiosity of the mass. On 3rd November 2017, CNBC reports that Digital Currency Exchanges such as Coinbase has a sudden outburst of new account registration requests right after CME announces bitcoin futures plans.
Entering a new year can be an exciting period, bursting with new milestones, fresh starts and new challenges to tackle on. How would these digital currencies flare in 2018? Is Bitcoin indeed a bubble or a fast-track to your first pot of gold? Tell us what you think below.