When the anonymous Satoshi Nakamoto introduced Bitcoin, the first cryptocurrency, many were not keen to realize the potential bore by the new invention. Bitcoin then paved the way for hundreds of other cryptocurrencies, setting investors, observers, and governments into a buzz of activities that either endorsed or quashed the digital currencies.
Virtual currencies are progressively growing stronger, with some renown institutions such as Microsoft accepting payment in the form Bitcoins. Startups are also experimenting the blockchain technology through various ICOs (Initial Coin Offerings) to finance their ideas, with the most successful startups so far being founded on Ethereum’s blockchain.
The cryptocurrency marketplace is universally accessible
The most notable fact about cryptocurrencies is that they are borderless. Anyone from any part of the world with access to an internet connection can buy, sell, or trade cryptocurrencies from exchange platforms that cover his or her given country. This makes the virtual currencies a number one choice for people who would want to tuck away their wealth from political instabilities faced in their countries which can depreciate the value of their investments over time.
Crypto trade is the most volatile type of business to engage in
No one can dispute the fact that many have made a fortune out of the crypto market including renown celebrities such as the Winklevoss twins who sued Mark Zuckerberg over the Facebook idea. Nevertheless, cryptocurrencies are such a volatile kind of investment. A good example is how Bitcoin grew in value hitting an all-time high of $ 17,900 by the close of 15th December 2017; nearly 50 days later, the price of the pioneer cryptocurrency had dropped by over 50%, plummeting to $6,200 by close of 5th February 2018. The currency has since consistently recovered from the surge.
Education is key to navigate the crypto market
Whether you are an individual trader envisioning to participate in short or long term trading actively, or a group of inventors looking forward to successfully implementing your projects through ICOs, education is the most vital organ to navigate the crypto market easily. Hiring the consultancy services of reputable platforms such as Arcane Bear should the first step to take in enriching your understanding of cryptocurrency trade.
Beware of scammers
Just like most other industries are marred by scammers, the virtual currency marketspace is no exemption. You need to be careful with whom you engage in a trade, and take the various KYC (Know Your Customer) precautions. This is because transactions carried out on the blockchain are somewhat irreversible. Lost funds are, therefore, a lost cause.
You might be your worst enemy when it comes to cryptocurrency trading
Finally, apart from scammers posing you the threat of parting with your coins without fulfilling the end of their bargain, laxity on your part as an investor might also play against your own good. For example, misplacing your password and recovery phases means losing your money for good. On a different note, listening to the ‘market noise’ as a result of panic from a few investors might sometimes run you into a loss. In a nutshell, the crypto marketspace is such a dynamic work; you have to study it for the odds to work in favor of your investments.