Cryptocurrencies. [Photo/img.com]
Everyone seems to think cryptocurrencies are the future.
The massive boom in the price of bitcoin over the last couple of years has attracted hundreds and thousands of new users towards the cryptocurrency markets.In fact, according to a recent survey conducted by Blockchain Capital, 30 percent of those aged between 19 and 34 years old would rather invest Sh100,000 in bitcoin than the same amount in government bonds or stocks.
If you are considering this as an investment opportunity, it is essential that you do so from a point of good knowledge, and ensure that ultimately your money remains safe.
Do your homework here is a lot of hype, rumors, success stories and tales of horrible failures when it comes to digital currencies.
You have heard it all, but before venturing into any investment, it is important to take some time to truly understand the market, so you can be sure you know exactly what you are getting into and are not caught off guard.
It is a riskThe numbers can seem luring, and lucrative.
The value of what was a couple of thousands of shillings has shot up to over Sh721,000.
This is a massive return with the assumption that everything goes according to plan.
However, as we saw the slump with bitcoin towards the end of last year and beginning of this year, there is a major risk with cryptocurrencies.
Don’t the panic
This form of investment is not for the faint-hearted.
It is one driven heavily by emotions, due to its tremendous volatility.
You in one week see the value of a currency shoot up over 50 percent and only to drop more than 80 percent the following week.
Be safe online because cryptocurrencies are not regulated, newbies tend to get taken advantage of.
Beware of scammers online, and do all possible to ensure your crypto remains safe.
Be sure to authenticate any brokers online, or any trading platform online.
Buy low, sell high is the classic investment advice that applies even in cryptocurrencies.
Do keep tabs and watch the market dip and rise, study the market and make educated predictions to make better decisions.