Image source: pexels.com
Hi guys, every time I talk to a friend about blockchain or Bitcoin, the question is the same: Should I invest in Crypto? What coin would you recommend? When the price will drop? The answer is very simple, I don’t know. Please do not misunderstand me; I’m not saying that I don’t trust the potential of blockchain or cryptocurrencies; I’m just saying that is very difficult to answer those questions.
The cryptocurrency market is very volatile and unpredictable. The price of a cryptocurrency depends on many factors sometimes it could be manipulated as well. For instance, be aware that if in some place in Asia a major trading company gets hacked, the price will drop; that kind of events are unpredictable.
Remember this rule: Never Make an Investment if You Can't Afford a Total Loss
There's a huge difference between saving and investing. Saving is putting your money aside in a safe place where it stays until you want to access it in a certain period of time. You can use it in case of an emergency or to achieve the goal you're saving for.
Investing is not saving. Investing is the process of putting your money to work for you. If you invest wisely, it can typically make more money for you than the interest you might earn in a nice, safe savings account or certificate of deposit. But with reward comes risk. If you make poor choices or even if things beyond your control go wrong, you could lose all your money.
The creator of Ethereum, Vitalik Butterin, said once: do not use your retirement savings to buy crypto, is very risky and you can lose all of it. There are hundreds of ICO’s (Initial Coins Offerings) out there. All of them claim to be the next best thing. It could happen. The truth is that a lot of these projects will fail.
Of course there are some very interesting projects that really worth investing on them. Blockchain is a very promising technology, but please be careful. Your first goal should always be to avoid major losses. Don't get greedy. Be patient.
Crypto market is a roller-coaster, if you don’t like to take risks, this is not for you. In summary, it’s up to you if you decide to risk your money, but do not put all the eggs in one basket.
Best regards,
Follow me @inTechractive