The cryptocurrency market has taken the world by storm over the past few years with coins such as Bitcoin, Ether, Dogecoin, Shiba Inu and others. Cryptocurrency has, in all fairness, set off a new era in how business transactions take place on a global scale – popular people like Elon Musk backed them. However, cryptocurrencies are volatile in nature and are subject to market risk. For example, bitcoin, the world’s largest cryptocurrency, hit a record last year touching $69,000, falling below the $40,000 mark within just three months. Therefore cryptocurrencies are labeled as risky assets, and investors should be aware that there are volatility associated with investing in them.
Having said that, people who are interested in investing in bitcoin or cryptocurrencies in general can keep a few basics in mind while engaging in its trading. According to Kumar Gaurav, founder and CEO of crypto managing platform, Casa, one of the most important things is to understand how much you invest in crypto. “You must understand that cryptocurrency is extremely volatile. The market is always open and prices fluctuate based on global demand and supply factors. Cryptocurrency as an asset is slightly riskier than other investment assets.”
Speaking on similar notes, Darshan Bathija, co-founder and CEO of Wold and a member of the Blockchain and Crypto Assets Council (BACC), offered a solution to make bitcoin a bit risk-free. He said, “Cryptocurrency is full of volatility and speculation. If you want to invest in bitcoin, don’t chase small profits, or get discouraged by small losses. If you want bitcoin to be a great long-term asset, So more importantly, if you can afford the occasional short-term downside. If you don’t want to deal with volatility, the solution is to put your bitcoins in a fixed deposit.”
Meanwhile, Gaurav highlighted the importance of choosing the right cryptocurrency project to invest in. “There are over 11,000 crypto projects that are now listed on CoinMarketCap. Out of 11,000 tokens, only a few of them are worth investing in. It’s up to each investor to understand the project, research the team and then invest in the project. It is important to consider the coin, the platform on which it trades and know the underlying technology.”
Coinsbit India co-founder and CEO Ketan Surana, who is also a member of BACC, said in this regard that if one is interested in bitcoin, one should know the basics. “Must make sure to learn the basics of bitcoin – how it is mined; the reason; why people put so much trust in this asset class. They are limited to 21 million, and the last bitcoin will come in the year 2140, with its TokenMonics and its connected halt event.”
Echoing the sentiments, Bathija said, “Always learn before investing money. With crypto, the learning curve is steep but it is extremely important. Learn about transactions, custody, networks and wallets. These are bitcoin investments.” That’s why we’re working on a learning product integrated into our app to educate users before they buy cryptocurrencies.”
That being said, Gaurav said that one should not fall for the hype that is often associated with a certain cryptocurrency. “It often happens that a coin rises early and then suddenly loses profit. You must learn how to be patient and not fall for the hype. Check whether the asset is rising on its own or riding a bubble. There are situations when an influencer can move the market,” he said.
“If there is anything certain about the cryptocurrency industry, it is volatility. Keep this in mind when investing. It is not that your investment will always go up, many times the asset will see a decline. That is likely when entering the industry. Keep that in mind,” he added.
The experts also emphasized the importance of finding a secure crypto wallet, as the asset is prone to fraud. “Always make sure you buy bitcoin from a reputable crypto-asset exchange company so that your funds whether fiat or cryptoasset are always safe and can be deposited; withdrawn or converted seamlessly into another asset,” Ketan Surana said.
“Some of the best options are wallets that are also linked to exchanges, allowing you to store and trade your cryptocurrency assets from a single location,” Gaurav said.
read all breaking news, today’s fresh news And coronavirus news Here.
,