Crypto investing: Don’t fall prey to wolves

THERE is a fine line between investing and trading.

Cryptocurrency investing is not trading, nor is it associated with trading.

That is where the misconception and confusion come in.

With the changing business landscape, it seems as though the best way to create wealth in today’s era is to invest in disruptive innovative projects or businesses that have the potential to yield multiple returns as they reach maturity.

Even though these types of investments often generate gigantic gains for investors, they leave loopholes that result in people who are looking for a “get rich quick” scheme being scammed.

With that said, is there a specific time to buy crypto?

No, not really. One needs to research prior to investing because it is all a gamble.

Cryptocurrencies represent one of the best investment opportunities that the world has ever seen in centuries.

Over the last 10 years, Bitcoin alone has presented an average of 10 000 percent gigantic returns that no one has seen in traditional investing.

However, these investment opportunities have come with their own risks because not every cryptocurrency is a good investment.

Some cryptocurrency projects have raised significant amounts of money, but are yet to deliver on their promises, while others have gone completely bust.

Investing requires one to educate themselves because investing pertains to one building wealth over time, unlike trading that requires constantly buying and selling assets on a market.

In order to trade carefully, one needs to understand their end goal and objectives. You need to spend what you are willing to lose when investing or trading because the market can never guarantee any returns.

There is no such thing as investing the right way. Investing requires one to have a thick skin because you are bound to lose money along the way. Nothing worth doing comes without risks. You just need to be clear what type of risks you are willing to take for certain rewards. — smetechguru.co.za.