Are you looking for new opportunities to grow your wealth? If you’re still fixated on traditional investment vehicles such as stocks, bonds and real estate, you may be leaving plenty of money on the table. Investing in digital coins is the hottest trend right now. Bitcoin, the most popular of all cryptocurrencies, has increased its value by nearly tenfold since the beginning of the year. This is virtually unheard of in the world of stocks, but many digital coins have enjoyed this same level of success so far in 2017.
What is Cryptocurrency?
The easiest way to understand how cryptocurrency works is by thinking of it as a form of digital cash. You can convert your fiat (US dollars, for example) to cryptocurrency and then use it for sending payments. What makes cryptocurrency so attractive is that it runs on a decentralized platform. There’s no middleman, central banks or any third-party to worry about. Ultimately, cryptocurrency advocates are hoping that it will eventually replace fiat in the future.
Why Invest in Digital Coins?
Bitcoin and other digital coins have exploded in popularity this 2017. This is thanks to the increasing number of people who are putting their money in cryptocurrency. Also, more and more business establishments are starting to accept digital coins as a form of payment. Cryptocurrency is still relatively young, and many analysts think that its value will keep rising, despite already increasing by tenfold in one year alone.
Just imagine if you invested $1,000 worth of bitcoin back in January. Today, it would be worth around $8,000. And if you’re a more aggressive investor, you can try trading digital coins to grow your money.
Getting Started in Cryptocurrency Trading
Aside from the consistent increase in the value of bitcoin and altcoins, another reason why investors feel compelled to trade digital coins is that of the extreme volatility of the market. It’s not uncommon for one coin to increase its value by 50% in one day. There are even cases in which the value increases by 200% to 300%. The thought of doubling or tripling your money overnight is just too enthralling for investors to resist.
Remember, though, that it goes both ways. It shouldn’t come as a surprise when the value of a coin drops by a large percentage as well. Still, many investors choose to take the risk. This kind of volatility isn’t seen in any other market, so people are quick to grab the opportunity hoping that it holds the key to their financial freedom.
The basics of investing still apply to the cryptocurrency market. You have the option of holding the coins you like for the long-term. If you choose, you can start cryptocurrency trading and get the chance to exponentially grow your initial investment. Both the risks and rewards are high, so it ultimately lies on you to decide what investment strategy to use. Your next order of business should be to learn as much as you can about cryptocurrency and how it can be just what you need to diversify your portfolio.