Anyone who bought Bitcoin when promoters said it would hit $100,000 by the end of the year were badly burned. Nevertheless, there is a future for cryptocurrencies and the task at hand is choosing crypto investments that will prosper in the new crypto era.
https://youtu.be/MFJ1S_EcpB4
2. Where is the cryptocurrency world headed?
Bitcoin and others are down significantly this
year. However, practical uses of
cryptocurrencies with NFTs, DeFi, the
Metaverse, and smart contracts are entering the
realm of reality. Cryptocurrencies have been
shown not to be hedges against inflation or
stores of value as the stock market falls and
inflation rages.
3. Anyone who bought Bitcoin when promoters said
it would hit $100,000 by the end of the year was
badly burned. Nevertheless, there is a future
for cryptocurrencies and the task at hand is
choosing crypto investments that will prosper
in the new crypto era.
5. Moving away from speculation in the crypto
world and into long term investments there are
a few questions to ask yourself. What sort of
risk tolerance do you have? In that regard, how
much can you afford to invest in a potentially
volatile investment? Then ask yourself why it is
that you are buying a cryptocurrency. The
answer should be that you believe you can
make money by picking the right
cryptocurrency because it is positioned to do
well over the long term.
6. Then ask yourself how you are going to go about
investing in terms of amounts invested and
frequency of investments as well as keeping
track of your keys so that you don’t lose
everything due to forgetfulness. Once you have
thought this through, which cryptocurrency do
you choose? There are thousands to choose
from.
8. When Bitcoin was invented, it was meant to be a
means of exchange in the digital world, free of
government and regulatory oversight. The
huge increases in value of the cryptocurrency
led to rampant speculation as well as taxation
of capital gains and attention from regulators.
Going forward Bitcoin and others will assume
their places as a means of exchange in the
digital world with decentralized finance with
things like smart contracts, non-fungible
tokens, and activities in the Metaverse.
11. Cryptocurrencies may be a brave new world but
the general rules of investing apply as much to
Bitcoin and others as to stocks, real estate, or
investing in a business. Investopedia discusses
investment strategies. Read what they say for
a good starting point. No matter if you are
willing to pursue an aggressive and risky
strategy or a conservative and safer strategy,
knowing your investment is crucial. Warren
Buffett is a famous investor who assesses
intrinsic value of stocks before investing.
12. With this approach the investor investigates the
likely return on investment in the coming
years, uses that to determine a fair price for the
investment, and only invests when profits are
likely for years and years. Buffett only invests
in companies when he fully understands what
they do, how what they do makes money, and
how their business plan will continue to make
money for years and years.
13. When looking at cryptocurrencies that are tied
into NFTs, DeFi, or the Metaverse it is a good
idea to adopt the same approach and invest
where profits are likely now and forever.
15. The majority of investors have “day jobs.” They
want to put their money to work for a rainy
day, a secure retirement, and to get rich. A
practical approach to investing is called dollar
cost averaging.
16. Every paycheck, month, quarter, or year invest
the same dollar amount. When stocks or crypto
are high in price you will not be buying too
much and when prices are low you will be
buying more. Start early and continue to
process for years with a good investment and
you will be on your way to financial security.
17. For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.
