Investing in cryptocurrency

Investing in cryptocurrency

A lot of investors are currently sceptical about investing in cryptocurrencies presently. The reason for this is not far fetched, the sharp variation in the prices of cryptos especially Bitcoin should worry any smart investor. Money was created out of the necessity to have a generally accepted means of exchange of value, cryptos are created to make the exchange and storage of value easy. But the fight between money and cryptos has moved from the ease of sending and receiving payment to cryptos trying to survive and money trying not to go into extinction. The question remains will paper notes really go into extinction and give room for the new era of exchange?

What is the future of cryptocurrency investment

There is no straight answer to this question. The value of cryptocurrencies especially bitcoin was very high at a time and has since dropped in value. however, this does not mean it is not worth investing in. The financial market is very tricky and amazing things happen. The market is like a pendulum. Whether or not a trader will make a profit is often not determined by the financial instrument traded but the ability to predict currently what will happen to that financial instrument in the next hours, days, weeks, months or years. Some incredible traders are not interested in what will happen in the future to a traded instrument but the short-run profitability they can make with it. For instance, you can not refuse to trade in dollars because you predict that the economy of the USA will crash in the next couple of years. It is good that you can predict accurately what will happen to the future of the USA economy since you are interested in trading its currency. But, what should be more important to you as a trader should be to know if dollars will rise or fall in a couple of hours or days, dues to a certain factor. Knowing the future of a traded instrument is great it means you will make a great fortune in the future peradventure the instrument increase in worth as you have rightly predicted and also help you avoid instruments that will bring about heavy losses. But the ability to rightly predict what will immediately happen to an instrument determines if its worth trading or not. In a nutshell, investing in cryptocurrencies is worth it provided that you can predict what will happen to it now, even if it will crash later, you would have made a lot of profit. It doesn’t matter if cryptocurrencies will go out of existence tomorrow, you can still trade them today and make profits.

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