Investing in Cryptocurrencies

Did you know that there are more than 4,000 cryptocurrencies as of January 2021? So what is Cryptocurrency and how will it effect the future?

Cryptocurrency is a different form of online payment that can be exchanged online for goods and services. The technology behind Crypto is called blockchain, it is basically a decentralized technology spread across a number of computers that manage and record transactions, it is known for its extreme security measures. 

Yes, I know what you are thinking. Can you turn this into cash? Yes, through an exchange or a broker, you do not even need to know who is paying you for the currency. You can use a peer-to-peer platform that converts the digital currency into cash - by selling it. It is so secure that you also have the option to keep your digital tokens locked till your bank account is credited with the total amount of money you sold your token for.

People have always trusted to invest their cash money on land, property or specific investment methods tailored by banks. It might be a little hard for people to trust digital assets however the way tokens are taking over the digital world makes this investment seem a bit more attractive. 

Let’s say you are interested in exchanging your cash money to buy bitcoin, and you are now interested in selling your bitcoin. There are online platforms for exchanges and brokers like coinable or coinmama that are user-friendly and easy to sign up for. Other solutions might be selling to a bitcoin ATM or to a friend at a meetup - ( both won’t require any account setups).

Just like the Stockmarket, it is advisable that you sell your crypto if you have made a positive profit. That means that you have doubled or tripled your initial investment based on the most recent prices. Many people buy cryptocurrencies that they believe will increase in value and hold on to them for three to five years. 

Unlike many businesses the world of digital currencies has made big growth during the pandemic. Many people have not spent money on vacations and became curious as to what digital currencies are, 2021 has been huge for the world of cryptocurrency. 

If you're interested in investing in crypto here are some of the best ones to buy this year. Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DODGE), Binance Coin (BNB), and Polkadot (DOT). My personal recommendation is Ethereum and Dogecoin, according to the latest forecast, Ethereum price will hit $5,000 by the middle of 2023 and 10,000 by mid of 2028. 

Keeping in mind that the current fastest growing crypto is bitcoin. Bitcoin continues to lead the pack when it comes to cryptocurrencies. It is leading in market capitalization, popularity and user base. However, Ethereum is being used to create decentralized financial systems for buyers who do not have access to traditional financial products. 

I, myself was very speculative regarding the world of digital currency, specially as I am mainly data driven in my decision making process. No room for accurate predictions when it comes to crypto, since it is a new line of investment and does not have historical data. I would advise you to only invest what you are prepared to lose. As Frederick Stanield, a CFP with Lifewater Wealth Management in Atlanta, Georgia said “If you were to wake one morning to find that crypto has been banned by the developed nations and it became worthless, would you be OK?” 

Would you? be ok?