It is quite understandable to want to invest in cryptocurrencies. This is a booming market that is only beginning. It is wrong to think that it is already too late to join this market, whose size still represents only a very small part of world trade. If the fear of having missed the boat is what keeps you from taking action, know that this is a bad reason (others on the other hand, have a lot more weight and can dissuade you from invest in cryptocurrency).
If tata Colette and your mother-in-law try to dissuade you and keep telling you that the Bitcoin is dead, BFM TV does not talk about it anymore, give yourself time to do your research to give your free will the right to decide for itself.
There are today about 2000 cryptocurrencies. A very large number are ERC-20 tokens based on the Ethereum blockchain, one of the only blockchains of operational smart contracts. We also know that a large part of these cryptocurrencies are scams (scams) doomed to disappear.
However, it is likely that new cryptocurrencies (Electrum Bitcoin Private) will continue to appear to continue to support market development: Ethereum is currently working on its scalability issues to support a larger number of applications, and many competing projects quite Seriously suggest the proliferation of dPAs in very many sectors of activity of the real economy.
Beyond this purely pragmatic and pecuniary aspect, investing in cryptocurrency is investing in a new vision of the future : do you want to give more space to the giants of the centralized web by buying shares at Facebook or Google, or build the foundations of a fully liberal decentralized economy?
If the end of the hype of cryptos (which already existed well before the big press does all this noise on Bitcoin in 2017) is not a legitimate reason to dissuade you from investing in cryptocurrencies, however, we can only be too careful about the risks that such an investment entails.
Cryptocurrencies (Electrum Bitcoin Private) have fallen into the hands of man and are currently plagued by the most virulent speculative behavior.
This speculation around cryptocurrency has also earned them a requalification of the AMF, which prefers the name of cryptoactives (this name also highlights the fact that a large number of cryptocurrencies do not fulfill the function of an intermediary trade, and look more like a financial security than a currency).
Cryptos are among the riskiest in the financial sphere. These assets are both:
- Very volatile, because the market is still not very mature and extremely reactive;
- Very uncertain, most of them based on unfinished products, some not even having a beta to present to their investors.
If any investment is a bet on the future, know that in the case of cryptocurrency, it is a very risky bet, which you will have to assume alone in case of disappointment.
Which investor are you?
Before investing in cryptocurrencies, it is therefore essential to know your investor profile . If you do not feel able to manage the risk, it is better to turn to safer investments, such as real estate or life insurance.
If, on the other hand, you feel capable of managing the risk just make sure you really are. You are often told that you should invest only money that you can afford to lose But for the most stubborn, the formula is not strong enough.
So we can rephrase it to help you know whether or not you are made to invest in cryptocurrency: assume that all the money you place in cryptocurrency is lost forever . Because basically, there are a number of chances for them to be. Realizing a surplus value can only be excellent news.