Contrary to what many people think, the burst of the Bitcoin bubble is one of the best possible outcomes for cryptocurrency and their future application.
It doesn’t even mean Bitcoin, but rather a new chapter for digital money and a new outlook on how we deal with it.
If you are an entrepreneur looking for a way into this field, now may be a great time to start making moves.
Before you take the plunge, there are a few things you need to be aware of and we have listed some of the most important ones below.
Will There Be Another Bitcoin Bubble?
Probably. That is the nature of bubbles, they come and go, but more often than not, they leave the underlying industry ready for new highs.
Remember Dotcom Bubble? It ruined many investors, but dotcom companies today are more powerful than ever.
The same is happening with Bitcoin today. The crash devastated some greedy people looking for a quick cash grab, but as you are reading this, one Bitcoin is worth more than $5,000, with an upward movement. Things are far from bleak media is trying to make it look.
Who Uses Cryptocurrency Apart from Criminals and Terrorist?
Around 90% of all dollar bills in circulation test positive for cocaine. Does that mean we should give them up because they are being used by drug addicts and drug cartels?
There will always be shady people benefiting from civilization achievements and that has never deterred the rest of the humanity from benefiting from them as well.
New technologies like cryptocurrency are always embraced first by opportunists and people looking for new ways to improve their criminal enterprises before becoming mainstream and digital coins are well on the way of becoming mainstream.
Who Created Bitcoin?
We don’t know. He, she, or they go by the pseudonym Satoshi Nakamoto. In the original statement announcing the creation of Bitcoin, Nakamoto stated that he has developed “a peer-to-peer electronic cash system “, so the idea was not to create a digital currency at all, but rather make online payments easier.
There are many more interesting facts about cryptocurrency available, so you might want to read up on them in order to have a better grasp on the whole matter.
Is This Safe To Use?
No, not really. That being said, there are some inherent risks when dealing with cryptocurrencies that you need to pay attention to. We all know the story about the guy who threw away a hard drive with millions of dollars’ worth of Bitcoins on it.
If you lose your digital wallet, that is it, you can say goodbye to your coins. But if you take normal precautions, there is nothing stopping you from trading Bitcoin or using to pay for things online.
How Many Types Are There?
A lot. In August of 2018, there were more than 1,600 of them and the number continues to grow. After the success of Bitcoin, everyone and their grandma rushed to create their own digital currency.
Even some countries have their own. Apart from the Bitcoin, other popular cryptocurrencies are Ethereum, Ripple, Litecoin, Dash, Monero, and others.
Recognizing which one to mine or into which to invest is an art form, so do your due diligence before committing your resources.
Where to Buy Cryptocurrency?
The most secure way is to make an account on one of the cryptocurrency exchanges. There are several parameters you should consider before making a choice, like the volume of trade, online ratings, fees that they charge and finally, security.
As the number of coins grows, so does the number of exchanges, which can be confusing for novice traders. Perhaps the best strategy is to stick with some of the more established names, at least until you are more knowledgeable about the whole cryptocurrency world.
Cryptocurrencies are still a new thing and a very bright one at that, so they attract a lot of attention. People who have never invested a single dollar into anything are rushing to get into them, seeing their opportunity to make some big money.
Needless to say, a lot of them end up losing their starting capital, simply because they don’t know anything about investing and that is the best advice anyone can give you.
Treat cryptocurrency just like you would any other investment. Set your goals, devise a way to achieve them, but always have an exit strategy on your mind. The cryptocurrency market is still too volatile to be without one.