Bitcoin and other cryptocurrencies are no longer something discussed by the nerdiest of tech enthusiasts, in fact they’ve become so mainstream that most people are at least aware of the existence of crypto, and beyond that, there’s been a massive influx of investments as everybody scrambles to get a piece of the pie. There’s a certain fear of missing out that has been pushing the markets, but on top of that, there’s some very compelling and interesting technology at play.
With central banks themselves starting to invest in crypto, that’s a huge sign that there’s something going on here, something more than just hype.
If you’re thinking of throwing your hat into the ring and investing, or trading, crypto coins, there are some things you need to know first.
It’s Volatile
Nobody knows for sure what the future holds, even the most optimistic of Bitcoin evangelists are just speculating. Sure, people can see the technology, understand it, and understand the massive potential and it can seem like a sure thing, but there are always risks, and you should never invest more than you can afford to safety lose.
When the price of BTC and other cryptocurrencies rises rapidly, it makes a lot of headlines and gets a lot of coverage. When it slows down a bit, some of the people who bought in high start to panic, and sell, and then more and more people start to sell, some of them selling at a massive profit, but others taking very painful losses. If you believe in the long term viability of crypto, don’t let the day to day waves knock you overboard.
Alt-Coins
Along with Bitcoin, there are a number of other alternative coins that serve very unique and niche functions. The biggest players are Bitcoin and Etherium, and there are countless other coins as well. There are coins for keeping track of contracts, coins for buying cloud storage, even coins for buying cellphone minutes around the world.
There are also scams out there, coins that come along with the sole intention of creating a lot of hype, inflating the price, and then the team behind it just sells out and bails on the project.
Alt Coins also look a lot less expensive than Bitcoin on paper, making them feel like they’re a better value for certain new investors. The fact is, bitcoins are divided into a smaller denomination known as a Satoshi, named after the mysterious inventor and creator of Bitcoins.
These are very unchartered waters, so you’ve got to be careful, both when it comes to buying, but also when it comes to protecting your coins, which leads us to our final point for now..
Security
We’ve all heard stories of some of the notorious Bitcoin hacks that have cost people unthinkable amounts of money, especially with the soaring value of crypto in the past couple of years. We’ve seen various exchanges close down unexpectedly, or get hacked, and a big theme in 2018 and onwards will be security, in particular more convenient ways for individual to protect their own investments instead of relying on 3rd parties as much.
It’s frightening to the average user that losing their wallet means they lose all of their coins, but we’re hoping that 2018 sees more improvements in terms of security. Right now, there are plenty of great ways to protect your coins, but they all require that extra level of tech-savvy that is constantly tugging at crypto’s leg, trying to slow down the explosive growth.
