2017 was the year of Cryptocurrencies in all possible ways. The market stood to gain in all the areas, specifically Bitcoin, which took the market by storm. The investors took back home 6 times what they invested.
Well, that sounds like quite a value proposition. Isn’t it?
Considering these huge gains and market potential there was a threefold increase in the number of people who are willing to take their shots in the Cryptocurrency trading market.
What does trading in bitcoins and cryptocurrencies entail?
Bitcoin is one form perhaps the most popular form of digital currency within the bitcoin revolution software in the uk, and other exchanges worldwide . It matches the current scenario of digitization as Bitcoin practically couldn’t be attached to physical money and the only way to transact it is through digital records.
These digital currencies can be transferred and transacted online but there is no legal representation of whatsoever kind guaranteed by a central bank or official authority.
But Bitcoin did pretty well in the last few years and has managed to land its investors in a really profitable position. It is the most noteworthy Cryptocurrency that has literally taken up a considerable pie of the whole market.
But here’s the deal. To many, it seems like the Bitcoin market has already been exploited well and you will not be wrong if you think you are joining the game too late.
But wait; there are other Cryptocurrencies beyond Bitcoin which could hold strong viability and potential like its counterpart. This includes prominent names like Ethereum, Ripple, Litecoin, and Ripple which have been garnering attention over the last few years.
So, why not be a little proactive and see if we could explore our chances in this market and set some precedence for others to come.
How feasible and lucrative it is to invest in the Cryptocurrencies?
First thing, there is no running away from the fact that Cryptocurrencies are Incredibly Risky Investments. Reason one, the market is not backed legalized or controlled by any government or official authority which means there is no answerability to whomsoever.
Then, there are no regulations and guidelines, the value of transactions and trading totally depends on the demand and supply curve. While the market is growing at a very fast pace, it still can crash down at any point in time and nothing could be done about that.
So, if you are considering taking your chances in this market, be sure of it. As you get no legal protection and stand very high chances of losing all your money. Yet, no one will be answerable to you but yourself.
Then we have a huge risk of being exposed to one or the other kind of fraud. This is a highly unregulated market and hence scams have just become a part and parcel of the deal.
It’s becoming a hub of fraudsters and cyber-attacks and if you are ready to deal with it then only step into this risky space. Be very cautious of your movements and secure your transactions, wallets, account, and device in every possible way. Go the extra mile if needed but just make sure you do not fall into any trap.
Another reason that brings in the dilemma when it comes to trading in this space is the high volatility of this market. It is so unstable, dynamic, and prone to huge fluctuations which makes you second guess every action of yours. It’s sure to bring some stress on the table while you are at it so is prepared for that.
What areas of Cryptocurrency trading you can explore?
Though Bitcoin has done amazingly well in the past, there is no looking into the future. So, we cannot be sure what trading with Bitcoin in the future will look like.
So, if you are thinking it’s too late already, then you may be right. But don’t be let down by this as there are several other cryptocurrency options which you can consider.
Currently, two Bitcoin contenders that seem to have great potential are: Ethereum and Litecoin
Ethereum
It works quite similarly like Bitcoin and uses a similar Blockchain system to path the currency’s value considering the trade happening all around the world. It’s been 5 years the Currency has been in the Crypto market and till now has shown some really good signs of growth.
Litecoin
This was released in the year 2011 and works on a similar system as Bitcoin. It has also shown good profit potential and low-risk viability. So, we are going to rank this as the second contender after Bitcoin.
Others
There are more than 4,400 cryptocurrencies traded today out of which some names like Monero, Ripple, YbCoin, Dogecoin, Dash, MaidSafeCoin, Lisk, SiaCoin, and Counterparty have become common and well-known. However, the drawback is that they all hold a far lower market value than Bitcoin, Ethereum, and Litecoin, and hence trading in them is neither that exciting, risky, and profitable.
So there are many who still see much potential in the Cryptocurrency trading and say that it does not matter if you missed the first storm of it. That was just the beginning and there will be other currencies that will follow the suit as the trend of Cryptocurrency has just started and it is here to stay.
A highly risky and equally profitable venture
There is no getting away from the fact that it a highly risky venture and many of us feel safer with $1000 in our bank accounts than investing in Bitcoin trading. But the deal holds great profit prospect too and we cannot just overlook that.
Still, the conclusion will remain that you do not invest more than what you can afford to lose and you will be great.
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