Cryptocurrency has recently had a golden period in which the previous year proved as a real short time success. There were many different cryptocurrencies being introduced in the market and getting success in the early months of this year, but now it is observed that their prices crashed down really quick. Invest in Cryptocurrency – Is it a good time?
Invest in Cryptocurrency
Most people believe that buying the dip which is meant that you should invest when the prices are at the lowest. So, you buy it at minimum cost, and you can earn by selling when the prices go back up again. It could be a smart strategy that works in most scenarios. It is a clever decision to stock the investments by availing discount and then collect the profits when the prices tend to bounce back.
However, cryptocurrency does not work the same as the stock market. You must be having a question that is pretty much the same. The whole procedure of buying and selling is similar then why investing plans are different? It is because when you put your money and buy stocks, you can get the privilege of seeing a tracking record long enough that you find out what profit is expected at what time. With cryptocurrency, is relatively new and does not have much data, and no one can be sure of what the future will be like.
Here are some key points that we want you to note before you take any steps. It will ease out your stress of whether to invest now when prices are lower or to wait until the recovery of prices starts to happen.
Your approach to investment
It is your choice what you want. You could either go for buying and staying for the long term, or you could go with day trading. No wonder it is risky, but who knows what is in it for you. Higher the risk, the higher the return. But it is a tricky question because no one can assure you that long term investment in cryptocurrency would be in your favor. If you think that cryptocurrency has the potential that it will rise again, you should buy it now.
Where to invest?
If you have already made your mind that you want to see what the future holds for you and want to take the risk of long-term investment, let me explain a little bit more to you. Cryptocurrencies are not equal, and there are differences among them. Some have a higher risk than others. So, you must know which one to buy. For the longest record to track, the oldest and largest currency is Bitcoin and Ethereum. However, this newly introduced coin named Dogecoin has no previous record, and that is why more prone to risky cryptocurrency.
Why not Dogecoin?
In continuation to our reasons, we have found some analyst teams who have won recognizable awards in the past. According to the list they have prepared for the best stocks to invest in, Dogecoin is not among them, not until now.
Make up your mind first and try to find out about your tolerance towards risk. Only after that, you should start thinking about real investment in cryptocurrency.