It Requires Courage to Deal with Cryptocurrency Investments
By Space Coast Daily // April 11, 2022
Ever since it was launched in 2009, Bitcoin has only been growing in popularity. Over the years, numerous digital currencies joined it. The numbers prompt potential investors to venture into a risk-filled financial venture. However, do they have the requisite courage to handle the no-guarantee-of-success investments, without flinching? For more information click here.
Myths that Lure Potential Investors
Certain beliefs, or rather, myths about digital currencies, tend to attract potential investors.
1. Digital Currencies are real money.
This myth may be attributable to the fact that cryptocurrencies are useful for making payments. Many fail to realize that they are merely alternative modes of payment. They are not replacements for debit/credit cards, currency notes, and checks. In fact, real currencies and digital currencies co-exist.
Fortunately, the myth is dying. People have begun to note that transactions on blockchains take time to go through, and invite charges. This does not happen with fiat currencies. Then again, there is the volatility of crypto marketplaces, making prices of coins/tokens swing wildly.
2. Digital Currencies are excellent for investment.
Miners and computer programs control the supply of varied cryptocurrencies. There is a market cap set on each one. Therefore, they are not going to last forever. Thus, it would be good to invest heavily and reap rich rewards.
However, investors are realizing that digital currencies possess value, only if people believe that they are great for investments. If this mindset changed, the concerned coin’s value would reduce.
3. Meme Coins are taking over Bitcoin.
There is an ongoing debate about the sustenance of Bitcoin’s value. With numerous cryptocurrencies giving it a competition, many investors are wondering if Bitcoin has become ‘ancient’!
At the same time, there is no denying that meme coins, such as Dogecoin, Shiba Inu, etc., are gaining in popularity. Of course, they owe their enhanced reputation to the tweets of Elon Musk!
Nonetheless, no coin can take over Bitcoin in value or fame! True, newer cryptocurrencies promise greater anonymity, speedier transactions, extremely advanced technical features, etc. Regardless, it remains the ‘gold’ of the digital currency world.
4. Digital Currencies May Take Over Paper Currencies
Potential investors feel that they had better become used to cryptocurrencies, since the dollar reign may soon end.
What they forget is that the U.S. Government controls the U.S. dollar. There is centralized control. Digital currencies function on a decentralized platform. There is no real authority in charge of them. They continue to exist, due to the faith expressed in them by their owners. Even Stablecoins need governmental support.
5. Digital currencies are trending, and will soon fade away.
Due to this belief, potential investors wish to make hay while the sun shines! However, cryptocurrencies have sustained for a long time, and are here to stay. In fact, they are giving so much competition to paper currencies, that several central banks across the globe are striving to create their own digital coins. Thus, there are revolutionary changes in the offing,
It Requires Courage to Go On
The disabusing of commonly-held myths is not enough. Every investor requires guts to carry on with cryptocurrency dealings. Compared to the vast populace involved in such dealings, a very small percentage becomes millionaires. Therefore, success required plenty of plodding and courage.
For instance, capital is required for initiating trading. In other words, the investor must have savings in hand. It is to be noted that there is no guarantee of success or failure. Therefore, borrowed money, in combination with losses, can have a severely detrimental effect on the investor’s mindset or life. Furthermore, losses are generally irrecoverable. Therefore, it would be advisable to begin trading with minimal amounts.
Potential investors are generally without a great trading strategy in hand. They need to receive education from a professional. They need to put effort and time into learning and practicing. If the strategy fails, or if cybercriminals enter the picture, then all is lost.
Making cryptocurrency trading a source of livelihood would be a terrible mistake! It can only be a side hustle or a hobby. Potential investors must view it as a source of passive income.
Thus, crypto investments require the ability to bear risks, without getting emotionally upset. The mind must be strong enough to try, and try again!