Risk is an essential part of growth. When Neil Armstrong with the other 2 was chosen to go to the moon, in the first-ever moon mission, They have 2 options, either take the risk and face the challenges or quit the program, live a life, regretting they missed the great opportunity.
12 years ago, entire humankind was in the same position. Satoshi Nakamoto, in his whitepaper, titled “Bitcoin: A Peer-to-Peer Electronic Cash System”, introduced a new payment system that is going to revolutionize the financial sector. The payment system, named Bitcoin have a lot of advantages, some of them includes
- It can not be counterfeited.
- Unlike international bank transactions, which took days to complete, in Bitcoin, payments are done immediately.
- No downtime. Since there is no centralized system, the payment system won’t face any downtime just because of some system failure.
Those who adopted Bitcoin in those early days are millionaires now.
In 2009, 1 BTC was worth nothing and in 2010, 1 BTC worth less than $0.1. But today, 1 BTC worth more than $34K.
Likewise, last year, 1 BNB was worth $20 and today 1 BNB $280. The same goes with Ethereum, DogeCoin, EOS, ADA, Matic, XLM, and almost all Crypto Currencies.
People are worried to invest in Crypto because of the high volatility of the coin and the huge market fluctuations. People are afraid to put their hard-earned money on Bitcoin. You may see potential short term loss in your investments. They are short-term. Crypto Currencies are growing over time. Crypto is not something that makes you an overnight millionaire rather it’s an asset that you can hold (HODL) for the long term to get high returns. To understand that, let’s see a quarterly price chart of bitcoin from 2013.
As you can see in the graph, there are ups and downs. However, at the end of the day, it’s going up.
Now comes the real question, is the risk worth taking?
Investing in Crypto have 2 basic rules.
- DYOR (Do Your Own Research): Apart from Bitcoin, there are thousands of altcoins available in the market. A few percentages of the altcoins are scams. So do your own research on the credibility of the coin, tokenomics, historical data, ATH, ATL, the team behind the coin, etc. are important part.
- Invest only what you can afford to loose: Don’t invest your entire life savings in crypto. The direction of market can change at any time. Even though the price will go up gradually, sometimes you may need to wait months or years to get your returns back. If you invested your entire life savings and later had to face any emergency, you may want to sell at loss.
It’s still early days and we have time to invest on crypto. Not just Bitcoin but there are plenty of cheap coins which have room to grow. Some of them include XRP, XLM, Matic, Ada, etc.
Don’t put all your money on one single coin rather create a diversified portfolio of different coins at different numbers. If you are willing to wait at least 4–5 years, you’ll get a good return.
Alt coins and Meme Coins
No other coin have a huge market cap as that of Bitcoin‘s. Other coins are called as Alt coins. Ethereum, Tron Network, Polygon, BSC, etc. allow people to create their own crypto currency via smart contract. Those coins are often known as meme coins or shit coins. They can be created by anyone and it won’t took much time to create one. Some of these are created by scammers to steal your money. Meme coins are extremely volatile and you may either loose up to 99% of your money or can get up to millions of percentage profit. It’s extremely risky and you should be very careful while investing in it.
Also investing on meme coins for the long term isn’t much recommended. meme coins will give you high profit in short term. You can use it for trading.
In short, Investing in crypto is risky but a risk worth taking. You may either get profit or you’ll learn some lessons which will help you to earn more in future. For the long term, invest in well-established coins like BTC, ETH, BNB, etc. and for the short term or trading, invest in meme coins.
