Is Cryptocurrency Worth Your Time and Effort?

Our belief that cryptocurrency was our future was shattered by catastrophic events across the globe, which sent the market spiralling downward. And it really seems to struggle to go back up. Will it ever? Can we still put our trust in it? Is cryptocurrency worth it? Keeping our investments up to date and ensuring that we're always prepared for anything that happens will help us remain on top of our game. Is it really worth your time and effort?

Get Used To The Dramatic Fluctuation

We know that cryptocurrency markets have always been extremely volatile. Whichever currency you chose to invest in, you wouldn’t expect it to rise continuously. The first thing you should do is to determine not to panic when the value dramatically falls, and keep reminding yourself that anything could happen, so you won’t freak out when things seem to hit rock bottom. It’s only part of the process and there are anyways ways to profit from it by hedging against it.

Is Cryptocurrency Worth It?

Nobody can predict the future of the world economy accurately, and we don’t know what’s going to happen to cryptocurrencies either. But at least we can predict a few aspects.

Assimilation into the Mainstream

The number of companies that accept payments in cryptocurrencies (mostly Bitcoin) is increasing. As a result, 

• More consumers will be willing to pay using Bitcoin.
• Payment clearance systems will make things easier for cryptocurrency users while retaining the security level tight.
• More awareness programs (or training) in cryptocurrencies will be provided by banks and financial institutions.

Volatility

Due to the decentralised nature of blockchain technology, cryptocurrencies cannot be centrally regulated, at least for now. Therefore, there will continue to be volatility in price movements.

How Can I Invest In Cryptocurrency Safely?

Here are some of the crucial ways when we look for the safest ways to invest in cryptocurrencies.

• Don’t spend more money than you can afford to lose.
• Use a well-known, reliable digital wallet to store your currencies.
• Your keychain passwords often cannot be replaced or reordered, in which case if you lose your password, you’ll lose your currency forever. It’s essential that your passwords are safely kept in several formats (written down, saved in a password manager app, etc.)
• Diversify your investments by investing in several currencies and ensure that the rest of your money is invested in higher-interest deposit bank accounts.

Bitcoin and Ethereum: Are They Good?

Two of the highest-performing cryptocurrencies are Bitcoin and Ethereum. But are they any good?

The answer is yes, partly because they are unlikely to collapse any time soon because the scale of the currencies is so big compared to others. There is never a guarantee of survival, but Bitcoin and Ethereum have less chance of a complete failure followed by the value going down to zero overnight.

Also partly, these top two cryptocurrencies are good to invest in during a bear market. Because when the value bounces back, the scale of it is bigger, hence increasing your overall investment value more. In order to avoid getting affected by market volatility, stablecoins should always be held in good proportion.

Cryptocurrencies That Keep Motivating The Investors

Don’t forget that a lot of people who try to sell particular cryptocurrencies are affiliates. As they get more people to join in, the number of transactions will increase, hence the value of that particular currency will rise. 

According to CNBC, there are more than 19,000 cryptocurrencies as of June 2022 and dozens of blockchain platforms. But apart from Bitcoin, Ethereum, and just a few others that you may have heard of in the past, what can you do with the minor currencies?

The problem with some of the affiliates is that they only try to persuade you with words like “daily payouts”. This may give crypto-beginners the impression that they might be able to make short-term profits. But promising future profits is not really a sustainable marketing method. Users will soon get bored of speculating, and it won’t increase the number of transactions and raise the currency profile too well.

Typically, minor crypto coins and tokens are used for some specific purpose such as credit points for gaming. They are also exchanged as a reward for doing some tasks online. 

Generally, the cryptocurrency platforms that encourage you to participate in daily activities can raise the value of the currency quicker than the ones that don’t. If you’d like to invest in a currency that you’ve never heard of before, choose one that’s attached to a platform that keeps you motivated.

Trading Rather Than Investing

The difference between the terms trading and investing is, in short, trading is short-term and investing is long-term. Trading is when you buy a currency when the value is low and sell it when it goes up higher. You repeat the buying and selling process to make regular profits.

It’s up to you to go for a trading option or now, if you are not afraid of taking a more aggressive approach in an attempt to make quick returns, it will perfectly suit you. On the other hand, if you prefer to keep speculating, your well-diversified cryptocurrency portfolio will be the future. It all depends on how confident you will be as you build your crypto experience. You shouldn’t have to struggle to maintain your pace, the decision is entirely up to you.

What If Your Currency Fails?

According to Nasdaq’s article published in July 2021, there had been over 2,000 failed cryptocurrencies. There are several reasons for this:

• When a currency is created without any specific purposes, users won’t take it seriously enough to invest.
• For the same reason when a currency is created for a joke: to mock the digital currencies, crypto industry or the whole economic system.
• Or, when a currency is created to scam users.

There are some elements to suggest that a cryptocurrency may fail in the near future, so you can remember these points to avoid losing your money.

• Check the transparency. There should be several third-party support systems that closely review each cryptocurrency project. See what they say about the particular currency that you’re looking into.
• The founder of the particular coin or token. If they don’t identify themselves, they can easily shut it down at any time and hide away.
• The purpose of the currency project. They should tell you why the currency was created in the first place. If there’s no purpose, there’s no direction, so it may fail.
• Check if the coins/tokens are listed on reputable cryptocurrency exchanges. 
• How the currency is advertised and what the existing users say. If they only tell you to get it without a valid explanation other than “to make profits”, this can be a warning signal.

Dynamic and Resilient Approach

To be successful in managing multiple cryptocurrencies to survive the future economy, it’s important to stay “dynamic and resilient”. Dynamic meaning that you keep a positive attitude to constant changes, while resilient means being able to recover quickly from difficult conditions. The way that works for one investor may not work for another. One currency’s strengths may not translate to another’s weaknesses. Knowing your environment, your own personality and capability are important as well as your financial goals.