Antonio Manaytay – Fourth Estate Contributor
Cambridge, United Kingdom (4E) – Has the future arrived? Yes, it has arrived when Bitcoin barged into the financial system in 2009 through the back door – no government or central bank regulating it – challenging your traditional concept about money. Interestingly, it existed only in your computer screens but it has commanded a $38 billion market and still counting.
Bitcoin as a currency was acknowledged as the best performer for two years, 2015 and 2016. This year alone, the digital money reached a new high of $3,000 before it settled to $2,327, which fall was shared by another sibling, Ethereum.
One good thing about cryptocurrency is that no single body or authority controls it, which is very attractive for liberals. The bad side, however, is that no two digital money followers could agree how much actual money they have. A warning must be stressed here: although many people have made their fortune in mining cryptocurrency, a good number also have lost good money.
You must be blinded by all the bright prospects and the good things painted about cryptocurrency. It is in the name: digital money, which means it could crash anytime just like any other financial systems in the world.
The correct attitude you must have when foraying into the maze of cryptocurrency is the one with an open mind. This is not to say that cryptocurrency is not sustainable – although it is a possibility. To be on the safe side, think of it as speculations rather than an investment when buying digital money because you cannot keep them in your vault forever like the way you did with your gold-backed paper bills and coins.
Bear always in mind the cryptocurrency’s price is as good only as the appetite for it lasts. Like the conventional financial market, the price of your digital money depends largely on the mood among speculators. Everyone in the digital money market is just waiting for the right time to strike a fortune and get out of the system, which could spell a difference between a bearish or bullish market.
It is better for you to keep these three facts when you are into cryptocurrency speculation.
1. Being Paranoid Is Good When It Comes To Security
You were not born yesterday not to know that cyber thief populates almost all conceivable nooks of the internet. With the popularity of cryptocurrency, it is not farfetched to be paranoid about the security of your digital money.
Keep your digital money in a safe place like WarpWallet and CoinBase. You must choose cryptocurrency transactions that are backed by trusted brands around.
As a rule, keep the following in mind: password to your account must be considered strong, double authentication is a must, don’t be fooled by downloading screensavers, and be as reasonably paranoid as you can be.
Above all, be careful in choosing new cryptocurrency to speculate by knowing more about it.
2. Be Prepared To Loss As You Gain
When into cryptocurrency speculation, remember that you are a trader, not a pirate. This means that you are ready to lose as you want to gain. There are always two sides of the coin. And it is good for you to keep a healthy outlook about trading: win some, lost some.
One good relief for cryptocurrency speculators is the closure of the notorious Mt. Gox. It was indeed a relief. It is a good time again to buy new cryptocurrency.
Keep in mind, however, that digital money market was originally designed for small numbers for easy trading among players. With the proliferation of new cryptocurrency, it is better to keep the ones you are interested in to remain that way – small.
3. Informed Caution Is A Rule
You could be a winner if you cash in on the bullish digital money market in a way that helps stabilize it. Do not act like an eagle-eyed trader who attacks the prey in an instant and leave. It will not help you and your fellow believers of the system in the long run.
Other things you should keep in mind include the following: keep your job, keep your money close to your chest, never bet your fund for retirement into it, and do not hesitate to leave when things get bleak.
No matter how good the claims about Bitcoin, it is still governed by the traditional market forces. All cryptocurrency is subject to the market ups and downs. It can be made sustainable but no gain is permanent.
It is worth your time to foray into cryptocurrency speculations as long as you are aware of the tricky path you are treading. The value of your digital money is assured when more and more people want to use it in trading: buying commodities like software, paying for services rendered, or doing the same thing as you do.
The more people stay in the system, the more sustainable the system would be. The pattern goes like this: bubbles when many people are in it, and bust when people start packing up for good.
To be involved in cryptocurrency speculation is not a get-rich-quick scheme. It is not. If you think this way, then it is better for you not to go into it because you are only going to mess other people’s money and destroy the system.
To stay safe as you speculate, be reasonable as you invest. Do not put all your money in one transaction while keeping your hard-earned savings out from the system. Temptations are high to put all your money in one transaction especially when the prospects of gain are very high. But no, it is better to be safe than be sorry.
Keep a healthy outlook while into cryptocurrency speculation. Always think that you in it as a trader and not as a gambler.
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