How to NOT Panic During a Crypto Dip
It is certainly no secret that the crypto market is extremely volatile. This has deterred many people from investing in crypto altogether. In fact, many world class investors such as Warren Buffet, have refused to invest in crypto whatsoever. Almost every week there are major dips within the crypto market, only for prices to rebound better than ever. This is a major problem, which could prevent crypto from truly becoming the world’s new medium of exchange. With such a high level of uncertainty, why would anyone risk their money on crypto to begin with?
Understanding the technology behind crypto is critical to making smarter investment decisions. Become a blockchain ninja today!
Why Do People Invest?
Perhaps it is social media, or successful entrepreneurs like Elon Musk and Jack Dorsey, that publicly endorse investing in crypto. While at the same time, billionaire investors such as Charlie Munger publicly dismantle crypto. Claiming that investing in crypto is like buying ‘digital gold’. With so much controversy, investing in crypto has gained a lot of publicity. Furthermore, the Covid-19 pandemic caused many people to search for a new way to protect their money. Leading many people to the mysterious world of cryptocurrency. This resulted in the birth of an entirely new industry.
Perhaps the most appealing aspect of crypto, is the fact that many people have become very wealthy, very quickly. Unlike the stock market, crypto markets trade 24 hours a day, 7 days a week. This means you can literally become an ‘overnight success’ in the world of crypto. This is something that undoubtedly makes crypto especially attractive to impatient investors. But with so much potential for success, the potential to fail is even greater.
Crypto is Misunderstood
Crypto is such a new field, that many people have not had time to learn about how it works. This adds to the confusion even further, with many new crypto investors turning to Reddit for advice. Most people are simply fascinated by crypto for the wrong reasons. It should not be the potential to profit that makes crypto appealing, but rather the ways in which blockchain technology is being applied. Within the next 5–10 years, it is likely we will see blockchain technology influence every industry in ways we cannot yet imagine. As far as investing in crypto goes, just remember one piece of advice. Don’t invest any money that you cannot afford to lose!
One More Thing
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