When is the right time to invest in cryptocurrencies?

If you haven’t invested in cryptocurrencies before, now may be the right time to do so

The market expects cryptocurrencies to rise before the end of this year, when Bitcoin may rise to new heights, with altcoins immediately following. For those who are thinking of starting cryptocurrency investing, it may be a good time to seize the opportunity now, before the prices of many cryptocurrencies are likely.

In this article, we offer several facts about investing in cryptocurrencies. In addition to this, we provide some details on one emerging area of the cryptocurrency market that can provide a huge return to investors. If you are interested in crypto investing, here are some things to know:

INVESTING IN CRYPTOCURRENCIES CAN OFFER THE OPPORTUNITY TO MAKE HUGE PROFITS FROM RELATIVELY SMALL INVESTMENTS.

Thousands of percent growth per year is not uncommon for altcoins (cryptocurrencies other than Bitcoin). For example, the trendy cryptocurrency Fantom (FTM) has grown by more than 16,000% since the beginning of November 2020. Before the rise, its value was only about $ 0.01. The price of the Polygon (Matic) has risen more than 13,500% and the price of the coin is still only around $ 2. Sound impressive? These figures are still nothing, as the price of the meme cryptocurrency Shiba Inu has risen more than 89 million percent over the year, turning even a small investment into an asset.

SOME CRYPTOCURRENCIES ARE APPLIED FOR THE CORRECT USES

An example is VeChain (VET), which is gaining popularity as an “enterprise-centric supply chain and logistics blockchain solution”. In particular, the VeChain platform can be used to monitor the quality, authenticity, storage temperature, means of transport, and other logistics information from the manufacturing facilities to the customer's delivery.

VeChain has partnered with BMW, Walmart, PwC, and many other big names, and the number of partnerships and the rollout of the VeChain platform is constantly growing. The price of VeChain has risen about 1240% since last November and many experts consider this cryptocurrency a promising long-term investment.

THE VALUE OF CRYPTOCURRENCIES IS BASED ON SPECULATION, AND ARE THEREFORE TRULY VOLATILE

The prices of cryptocurrencies are largely driven by ‘hype’, i.e. positive drumming on social media, for example. It is quite common to see large fluctuations in the value graphs of cryptocurrencies. Prices fluctuate a lot as investors bet for or against rising crypt prices.

These speculative bets lead to a sudden inflow or outflow of money, which causes high volatility. Thousands of percent gains can turn into a zero return on investment value in a matter of days.

THERE ARE OVER 10,000 CRYPTOCURRENCIES

In January 2021, the total market value of cryptocurrencies was $ 324,716 billion. Most cryptocurrencies are a kind of bubble that is likely to burst sooner or later.

But some cryptocurrencies become the “gems” of their investors, bringing very high returns to their owners. However, investors need to be very careful when choosing crypts and the importance of proper research should never be underestimated.

THE INTRODUCTION OF CRYPTOCURRENCIES IS ACCELERATING WORLDWIDE

A few days ago at YahooFinance, Bob Mason mentioned in an article that “Cryptot is not even close to competing with Visa and fiat currencies. The fact is, however, that even Visa has embraced the use of the blockchain. That means the future exists. ”

THE CRYPTOCURRENCY CURRENCY MARKET IS STILL LARGELY UNREGULATED

The cryptocurrency currency market is still largely unregulated, which increases uncertainty and high risk for investors. Also, many stock exchanges, such as the popular Binance, are not regulated by the EU.

Most cryptographic investors invest in Bitcoin, Ethereum, Cardano, and several other coins that already have large market values and are widely discussed in the media. However, we would like to highlight other attractive investment opportunities in emerging cryptocurrencies such as the gaming industry. The industry is still at the beginning of its story, but cryptocurrency is expected to become a huge industry combining cryptocurrencies and online gaming.

Buying is sometimes tricky

Many small altcoin beads cannot be purchased from central exchanges such as Binance. One way to get them is from coingecko.com, which offers the opportunity to buy more exotic coins, as well as cryptocurrency pairs. For example, in PancakeSwap, many coins can be exchanged for WBNB. While the first set of steps to get coins to be exchanged may seem quite confusing, it’s worth taking the time to learn the details of such an exchange, as the reward is the opportunity for high returns. Investors who want to get cryptocurrency from distributed exchanges such as PancakeSwap or Uniswap must have a crypto wallet, such as a Trust Wallet.

Be extra careful

Early-stage investors should keep in mind that game coins sometimes move very little for months while games are in development. When growth catalysts, such as news about the progress of a game or the launch of a game, appear, coins often tend to rise explosively, bringing huge profits to those who got them early. The potential return on investment of thousands of percent is what attracts investors.

But it should never be forgotten that nothing is guaranteed in cryptography. The main rules are:

“Do your own research” and
“Never invest more than you can afford to lose”

These are more than important in cryptographic investment. Another very important rule of thumb is to keep your login information, all your passwords, and the seed expressions of your cryptographic applications well stored so that you never lose access to your crypto assets.