Cryptocurrencies are digital currencies created with the aim of freeing themselves from the power of banks and states. Their value is currently rising sharply, and many investors now trust them.
Is it too late or too risky to invest in cryptocurrencies in March 2021? This month, Bitcoin has surpassed the $50,000 mark, thereby confirming the growing interest of investors in cryptocurrencies. Given its current price, there is no doubt that it is still time to invest in cryptocurrencies. However, as with any investment, there is an element of risk that one must be aware of to invest confidently.
The 2 reasons to continue investing in cryptocurrencies in March 2021:
Are you thinking that Bitcoin has reached too high a value for you to start trading? In March 2021, Bitcoin reached a value of more than $50,000. This impressive price increase might indeed be a reason to question the opportunity to invest, especially for small investors. However, it is never too late to start, and this for two reasons:
– Bitcoin is divisible
– There are other more affordable cryptocurrencies
1. Bitcoin is divisible
Bitcoin currently possesses an extremely high value, which seems to compel small investors to stay away from this currency market. This is not true!
Indeed, like any currency, Bitcoin is divisible, which means you can buy a portion of Bitcoin, called Sats (equivalent to cents). However, it is possible that a Sat is still too high for you or that you believe the potential gain might not be interesting enough with Bitcoin. If that’s the case, you can look towards other cryptocurrencies.
2. There are different cryptocurrencies
The number of cryptocurrencies continues to grow, and new ones are constantly being created. It may therefore be interesting to invest in emerging cryptocurrencies rather than established and overly-cited ones. Therefore, do not overlook alternative currencies like Ethereum, Ripple, etc.
The 2 things to identify when trading:
To make the right investment, one must be visionary and be able to identify cryptocurrencies with the greatest potential for growth that are not yet in the spotlight.
1. A cryptocurrency with room for growth
Trading relies on speculation. Therefore, it is necessary to analyze prices to identify cryptocurrencies that will maximize gains. Instead of Bitcoin, it might be interesting for traders who are not risk-averse to turn towards up-and-coming cryptocurrencies and research which will ultimately offer maximal profitability.
2. A currency that is not making headlines
The most advantageous cryptocurrencies for trading are not necessarily those making headlines. Indeed, many investors suggest focusing primarily on cryptocurrencies that are not currently front-page news. If you’re only interested in Bitcoin, it would be better to wait for a quiet period.
So, it is still possible to invest in cryptocurrencies, provided you act cautiously to manage risk.
The risks inherent to virtual currencies:
Like traditional stock market speculation, cryptocurrency trading involves a risk due to price volatility. Additionally, its departure from classic structures leaves it unregulated, and its digital nature exposes it to hacking.
1. Prices are volatile
Cryptocurrencies, like stock shares, are subject to price variations and might see their value drop, sometimes dramatically.
2. Cryptocurrencies are not regulated
Cryptocurrencies operate outside the banking and governmental sphere and are thus not subject to any regulation. This type of investment is, therefore, not guaranteed in the event of a problem.
3. Hacking and scams
Cryptocurrencies are virtual and hence exposed to the threats of hacking or internet-related scams.
The 3 ways to manage risk:
1. Diversify investments
To manage risks, it is important to trade reasonably and especially to diversify investments. Do not bet everything on a single cryptocurrency!
2. Secure your assets
To guard against risks linked to the digital nature of cryptocurrencies, it can be helpful to obtain a virtual safe and use secure trading platforms such as [immediate-edge.io](https://immediate-edge.io/fr/) that offer warranties.
3. Be patient
Cryptocurrency prices evolve at varying speeds and values. To avoid taking unreasonable risks, one must be patient and capable of waiting for price increases.
In summary, it is not too late to invest in cryptocurrencies, and, as with any speculation, there is a degree of risk that must be managed to avoid jeopardizing your investments.
