Over the years people have been so particular on which cryptocurrencies to buy – and worry about the confusion it brings. Certainly, there is confusion- especially when you are looking at over 1,602 cryptocurrencies in the market; it is difficult and a headache for most investors, newbies and interested people to choose which one to buy.
There is something I want you to take a look at – and it is the hype that is in connection with cryptocurrencies, Bitcoin so that people fail to identify the real deal behind it. People feel trapped always. Bitcoin is just a vehicle to the whole cryptocurrency market, and it is just the beginning. The technology called blockchain is what is driving this industry – and the earlier we get in touch with it, the better. It will help in the choice of cryptocurrencies you buy for the long-term with huge gains as far as the technology is concerned.
During the end of 2017 and early 2018, a big trap in cryptocurrencies occurred when many people – mainly new people with new money – were buying at exceedingly high prices, especially when Bitcoin was trading between US$17,000 – US$19,000. This was a hype for the fear of missing out. This is a trap that makes people lose money. Imagine you bought during this hype of bitcoin when it was US$17,000 or US$19,000. The big question is: did you consider before buying? Did you understand what you were buying?
It is funny to see how people regret buying at those prices with little or no knowledge in the whole process. Most people even don’t know what a wallet is, and how to do basic transactions with these cryptocurrencies.
Another trap that befalls people is the ICO trap. I call it the Initial Coin Offering greed. We normally hear the saying, “this is the next Bitcoin, and this is going to make you a fortune”. Fine, if you are highly lucky you can: but that is not usuallty the case. Like any other venture, you need to know why you are buying and how long you intend to be in the business. Can you handle losses very well? The good thing about cryptocurrencies is the ability to still hold on to your asset amidst the price fall. Can you stand it?
Not all cryptocurrencies can do the Bitcoin price of US$20,000. People fail to understand this and are caught holding cryptocurrencies which will never even do US$1. How high or low the price of a cryptocurrency can reach is determine on its total supply and the maximum cap in terms of US$ it can accommodate. A low supply with a high US$ cap means higher price and vice versa. Notwithstanding, you need to have more of it. Anyone who was holding a 1000 Bitcoins or Ethereum or Litecoin before 2017 is doing great now. Understanding what you are buying can get you lots of it.
The cryptocurrency you buy determines what you can make out of it. We don’t buy for buying’s sake. We consider the use cases, the teams involved, the advisors, the product and the partnerships involved, too. Mainly, the market will also have its share of it out of the marketing the team does as well.
This is a great place to make some great gains and I am always available to help.
See you at the top, cheers!!!