It is difficult to understand how you can make money by solving extremely difficult mathematical expressions or problems. As with the name, crypto tokens or cryptocurrencies are incredibly cryptic, so you can follow Warren Buffett’s advice and not invest in a business you do not understand. But then you cannot ignore the fact that adoption of Bitcoin is popular and has high profits. There are very few investments that can jump from $5000 to $60000 in just a month.
So, on this note, even though Bitcoins or any other cryptocurrency is a risky investment but no riskier than any other investment. Approximately 5000 cryptocurrencies are currently available in the market, but Bitcoin is the oldest and the leading cryptocurrency today.
Apart from this, it is not always necessary to engage directly in Bitcoin trade or investment. If you are investing in a corporation or company that is investing in Bitcoins or cryptocurrencies, you are also indirectly investing in Bitcoins.
If we choose the correct platform, investing in crypto tokens is not that risky.
The major lesson here would be not to create your wallet or make your investment in a platform you are not very sure about. For example, with fiat currency, you do not invest all your money in a bank that is unknown to you. Instead, you invest in a bank that is either known to you or has a reputation for being safe and secure.
Incidents of having a Bitcoin or crypto exchange being hacked are on an all-time increase. Hence, choosing the correct exchange for your crypto token is extremely important so you do not lose all your money to individuals with nefarious intent.
Various factors should be kept in mind when selecting the crypto exchange.
- It should be registered and have positive reviews from other clients
- It should be nearest to you and have a physical location. This ensures reliability
- You must go through every guideline of the crypto exchange you are planning to engage with, as every exchange has its unique set of rules
- You should be aware of the current crypto market trends and all the information regarding the crypto token you are planning to invest
- You can withdraw money from crypto ATMs, but these ATMs are not available everywhere. So instead of doing this, you can always use trustworthy digital exchange platforms like Bitcoin Era.
Another point would be investing in crypto tokens responsibly and keeping an account of every transaction and flow in the crypto market. If you are cautious and do not want to invest in crypto tokens directly, you can invest in cryptocurrencies indirectly through various ways and still learn about cryptocurrency.
1. Invest in the company which has crypto holdings
Currently, many companies have crypto holdings, and you can invest in these companies and let them act as a buffer for your investment. The most recent example would be Tesla which invested $1.31 billion in digital assets. The amount is huge and created quite a media buzz, but this only equates to approximately 2.4% of Tesla’s total assets. So, checking a company’s balance sheet before investing in a company that has Bitcoin holding is a good idea.
2. Cryptocurrency infrastructure is also good
Another way can be to invest in infrastructure around crypto tokens. This is like investing in companies that have a stake in the infrastructure of the cryptocurrency Industry. Although there are not many companies, companies are trading with the infrastructure simply like any other investment. You can either invest in crypto tokens or miners and the infrastructure required for mining. One such example would be the Riot Blockchain, which focuses on blockchain and cryptocurrency mining.
Cryptocurrency is risky, but not as much as it has been projected. If you trade with caution, the chances of earning good profits from these currencies are quite high. But many venture capitalists would never suggest putting all your savings and hard-earned money into a market as volatile as the crypto market.
Although you can take this investment as a side investment and invest a little amount of your overall income, this way, even if you are to lose the money due to volatility, it would not cause much loss, and if you gain, then well, it was good that you invested.