The insane rise in the price of so many cryptocurrencies has caused a large number of people to be interested in investments, who perhaps never would have been before. This stands to reason of course and it is perfectly understandable why so many wish to get involved. Given this spike in interest, experts like Robert Testagrossa have been wanting that this is not the market for everyone. If you are interested in crypto then there is some criteria which you should ensure that you meet, before parting with any cash. And so, only invest in crypto if…
You Have The Stomach
Crypto is the most volatile financial market on the planet and prices can swing wildly up and down in a matter of hours. This is why crypto is not the right kind of investment for everyone, as they simply don’t have the stomach to watch their money rise and fall in this way. IF you are happy to ride this out, then crypto could certainly be for you.
You Understand It
As foolish as it sounds to invest in something which you don’t understand, we are seeing so many first time investors doing this. To a newbie, it must appear that you just drop your money into crypto and then it goes to the moon, which of course is absolutely not the case. This has happened to many people over the last 6 months, but it is far from guaranteed. This is why you should only really invest in this space if you genuinely understand blockchain technology and the companies which operate within crypto. If you don’t understand it and you don’t wish to do the research, simply don’t invest.
You Are Aware of Security Risks
The gift and the curse of crypto is that it is a decentralized platform. This means that it operates without banks or companies which back it. The result of this is a far less secure operation with regards to the safety net which banks and organizations will give you. Simply put, if your crypto is stolen or you make a mistake, it is likely that you will have lost those funds forever. This of course is something that nobody wants, which is why you should always enter into this with your eyes open regarding security.
You Have Patience
Those who get in and out of crypto quickly to make profits are those who are investing many millions or more. The average person cannot do this and it is exactly why you should only invest if you have the patience to wait it out. Most in the space believe that the prices we are seeing now, are miles away from the potential prices which we could see in the future. This is why you should always remain patient when you see these prices pump and dump, and focus instead on the long term picture.
If you meet this criteria then this could certainly be a market for you.