2020: What You Need To Know About Cryptocurrency Investment

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2020: What You Need To Know About Cryptocurrency Investment


What Is Cryptocurrency?

Cryptocurrency is a digital payment system that enable anyone anywhere to send and receive payments in place of the physical money we carry around and exchange.

It is called "Cryptocurrency" because it uses encryption to verify transactions. Payments exist purely as digital entries to an online database that describe specific transactions.

Simply means advanced coding is involved in storing and transmitting cryptocurrency data between wallets (where you store your currency) and to public ledgers (where transactions are recorded)

Check out the top 5 cryptocurrencies in 2020; 

  • Bitcoin
  • Ethereum
  • NEO
  • EOS
  • Ripple.

Is it safe to invest in Cryptocurrency...?

We all know that Investments are all about risks, but some experts say cryptocurrency is one of the riskier investment choices around.

Technology has changed how people work, interact, make purchase and payments.

It's no news that companies and consumers have changed their payment system preference with the emergence of cryptocurrencies.

Study revealed that, most  people have heard about cryptocurrency at some point in time but don't fully understand what it is really all about.

Many keep asking questions like;

  • What is cryptocurrency..?
  • Is cryptocurrency secure.....?
  • How do you invest in it..? 

Study shows it is possible to become a cryptocurrency millionaire with little investment.

Meanwhile, like many new technologies, investors can win or lose a large amount of money in a short period of time, cryptocurrency is  no exception due to random changes in the value of the currencies.

Aside the risk, there are other dangers for crypto investors but study shows many can be avoided with a bit of good reasoning.

Good online security, background research and a healthy dose of questioning will help make sure your cryptocurrency investment is as safe as possible, and that you don’t fall prey to any fraudsters.

According to experts, before you invest 1 dollar in crypto, learn about cryptocurrency and exchange, read reviews and interact with more experienced investors before you take your decision, don't rush into it.

Check out these few tips to consider before investing in crypto currency:

1. Diversify:  Don’t put all your money in one crypto basket

There are thousands of options, you should be mindful that not all currencies make it.

Don't put all of your money in Bitcoin or etherium for example, just because the name is very popular and your friends are investing in it.

Diversification is key to any good investment strategy, so it is sensible to have fingers in several pies. 

2. Know how to Keep your computer and your digital currency safe

The moment you choose to buy cryptocurrency, you should know you have to store it. You should research you storage choices before investing as there are different kinds of wallets with their unique requirements, security and exchange.

Cryptocurrency investments can be vulnerable to hackers, and you know the cost isn't something to joke around with so you need to learn how to secure your investments like keeping your anti-virus software up-to-date, restraining from giving out your data online and lots more.

3. Prepare for the worst

The cryptocurrency market isn't for everyone, you need to become immune to the fear of missing out, be prepared for ups and downs, shocking change in prices, potential loss and other dangers attached to investments.

If you feel your mental health can't handle that, cryptocurrency might not be a wise choice for you. Just because your friend made money on a certain cryptocurrency doesn’t mean you will, be wise.

Infact, understand that, the point at which everyone is talking about a certain investment is the point when it is too late to jump in without proper research. Ensure, you're mentally fit, study and understand what you are investing in.

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