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Why Not Invest in Cryptocurrencies ,Let Your Money Work for You

by Estalontech 4 months ago in cryptocurrency
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Why invest in cryptocurrencies: Taking the right stance

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Before we talk about why you should invest in cryptocurrencies, you need to adopt the right mindset first and foremost. What does it mean to have the right mindset?

Having the right mindset means being open-minded, thinking positively and not whining or complaining after you make a decision and being accountable for the decisions you make.

Whining and complaining will get you nowhere. The market does not care about your complaints because the market will always be the market. In recent months, cryptocurrencies have become a global phenomenon for many and have surprised the world.

Even though not everyone understands the world of cryptocurrencies and how exactly the system works, banks, governments and companies are aware of the importance of cryptocurrencies because the market capitalization of cryptocurrencies is very volatile and the value of a crypto coin can reach thousands of dollars.

Therefore, do consider not to ignore the current market events when there are countless opportunities that you can take advantage of.

To start with the right mindset, you need to be excited first! If you know how dynamic the world of cryptocurrencies is, you would love to get started right away.

How can you invest in something you have no interest in at all?

Lack of passion or Venturing into investing without that bit of sense of excitement or eagerness will affect the money you have earned. You will only feel a lack of fulfillment and worse, it will be as if you are being forced into something you do not like.

There are two important principles that will help you develop an investor’s mindset:

(I) Focus on opportunities, not problems.

(II) Take action and stick with it, do not be driven by fear

Let us focus on the first principle, opportunities rather than problems.

Many investors can think of 100 problems, but not a single opportunity.

For example, “it’s almost impossible to understand the whole cryptocurrency system unless You started with Crypto following satoshi since day 1 ” and “cryptocurrency values are very volatile and alway remember one might lose all my money”, or simply “I do not have time to invest”.

We know where this is going. It’s true that sometimes there are so many obstacles that it becomes difficult for us to identify opportunities. However, do not let that stop you from exploring the rich cryptocurrency market.

If you knew about the countless opportunities, you would never complain and be pessimistic about the disadvantages because you would probably overcome them.

The second principle is: take action!

A great mindset would be meaningless without action. Fear will not take you far, and fear will always prevent you from taking a leap of faith. You need to start now. So be determined, believe in what you are doing, and change your life!

What is an investment?

The word investment simply means investing money for future profits. Your future profits can be in the form of assets or stocks and also cryptocurrencies that you purchase with the intention of earning passive income. The value of your assets may increase in the future. Once you make a conscious decision to invest, you are no longer working for money. “ You are actually making the money work for you.” ..That’s the Motto here

For those who choose not to invest or who do not have the awareness to do so, their monthly daily-work cycle would probably look like this.

You are a full-time employee who works the hours assigned to you by your supervisor. Sometimes you have to work overtime to make up for the extra workload.

Then, at the end of the month, you receive a substantial amount as a reward. There’s nothing wrong with that, but do you really want to live a mediocre life and only earn “enough” to make ends meet for the rest of your life?

That’s why you need to come up with a new plan to live the life you want, to create not only financial stability, but also sustainability. Instead of creating duplicates of yourself, which you can not do, you need to find a way to make your money work for you.

Even if you choose to keep your 9–5 job, your money from your investment is also working for you. You will be rewarded by having extra money in your account. This is one of the best ways to maximize your potential and earn more without having to get a raise, work overtime, or even switch from job to job.

Ultimately, investing is the key factor in getting your money to work without compromising your hours!

Why should you invest?

Get clear on why you are investing.

You do not just decide why you want to invest. Well, of course you want more money. Everyone wants that. But what is the point of your investment?

Why are you investing in the first place? You need to be clear about that so you know where you want to go and develop a strategic plan to get there.

Some people want to invest to save.

Many of us invest because we want to attain a certain financial goal. In that goal, investment plays a huge role to help you earn it. Either you want to start your own business, have your preferred lifestyle, buy a luxurious car, own a bungalow even — it all starts with your action to invest. Hence, it is imperative to know why you really want to invest.

Remember; don’t invest solely because of money, it is important to have passion in doing it. So, make sure you get your intentions right and have fun in doing it! Investment would not seem as a chore, or that daunting when you know how to have fun.

What is cryptocurrency?

This is one of the most frequently asked questions out there. What is cryptocurrency?

To put it simply, cryptocurrency is a digital version of money where transactions are done online. A cryptocurrency is a medium of exchange like your normal everyday currency, such as the USD, but for exchanging digital information through a process known as cryptography.

The first successful cryptocurrency was created with the invention of Bitcoin by Satoshi Nakamoto. This was followed by other cryptocurrencies that competed with Bitcoin.

Why invest in cryptocurrencies?

The reason why cryptocurrencies are so in demand right now is because Satoshi Nakamoto successfully found a way to build a decentralized digital cash system. What is a decentralized cash system?

A decentralized system means that the network is run by its users without being controlled by a third party, a central authority, or an intermediary. Neither the central bank nor the government has power over this system.

The problem with a centralized network in a payment system is what is known as “double spending.” Double spending occurs when an entity spends the same amount twice. For example, when you store online, you incur unnecessary and expensive transaction fees. Usually, this is handled by a central server that keeps track of your account balance.

Apart from the fact that cryptocurrencies are very secure and are handled by a decentralized network, there are other features that make cryptocurrencies the most talked about topic in town. They are now seen as an emerging form of investment.

What can cryptocurrencies be used for?

Cryptocurrencies can be used for various purposes and the best part is that all transactions are done online! There are different transactions that can be done when using cryptocurrencies:,we just named three here, as our objective is not to write this article too lengthy ,as many are monitoring the marketing for this week ,to catch up swing happening this few days before Fed’s secondary meeting on further regulation

1. bitcoin trading.

Bitcoin trading can be very profitable for both professionals and beginners. It is a new market where arbitrage and margin trading are widely used. The high volatility of the currency has also helped new investors enter the trading market.

2. Personal spending

You can buy almost anything with Bitcoin! From buying a car to traveling around the world with some specific traders like Telsa who might advance procurement of their products with also other cryptocurrency including bitcoins . In every niche of trade , buying and selling with digital currency is very necessary in near future

3) Crowd funding.

Cryptocurrencies also give you the opportunity to give back to society. And how? Through crowdfunding. You can become part of a success story by donating to a crypto crowdfunding project.

The types of cryptocurrencies

There are over 1000 cryptocurrencies and more , but we will only discuss the few currencies on the market.

In this report, we will only cover two of the cryptocurrencies — Bitcoin and Ethereum.

3–1 — Bitcoin

This is the first cryptocurrency ever invented and remains by far the most sought-after cryptocurrency to this day.

Bitcoin is known as the digital gold standard in the cryptocurrency network. As explained in the previous module, Bitcoin pioneered the blockchain technology that made digital money possible.

It is the first decentralized peer-to-peer network that is run by its users without the need for a central authority or middleman, which means that there are no unnecessary costs associated with digital money transactions.

Over the years of its existence, the value of Bitcoin has fluctuated tremendously, from zero to over $42,500 per Bitcoin to date.

A major advantage over other cryptocurrencies is that Bitcoins cannot be counterfeited or inflated.

The reason for this is that there are only 21 million Bitcoins generated for mining, no more and no less.

Therefore, it is predicted that by the year 2140, all Bitcoins will have already been mined.

Thanks to blockchain technology, you have ultimate control over your money and transactions without having to go to a third party like a bank or Paypal.

Bitcoin transactions cannot be reversed either.

Therefore, you should only deal with trusted parties as Bitcoin is also used as a tool for cybercrimes like dark net markets or ransomware. Next is another widely used cryptocurrency on the market.

3–2 — Ethereum

Created by Vitalik Buterin, this currency has secured the second place in the hierarchy of cryptocurrencies.

Launched in 2015, this digital currency is predicted to surpass Bitcoin and could be the cryptocurrency of the future. Ethereum is currently worth $3,226–00 to date afeter recent dip and is on its recovery path for January 2022

Is Ethereum similar to bitcoin?

In some ways it is, but not really. Like Bitcoin, Ethereum is part of a blockchain network.

The main difference between the two currencies is that the Bitcoin blockchain focuses on tracking ownership of the digital currency, while the Ethereum blockchain focuses on running the programming code or network.

Instead of having to create an entirely new blockchain for each new application, Ethereum allows thousands of different applications to be developed on a single platform.

In the Ethereum blockchain, miners work to earn Ether. Ether is a crypto token that supports the operation of the network.

Another benefit of the Ethereum blockchain is its ability to decentralize all centralized services.

Thus, Ethereum is able to decentralize services such as loans from banks, online transactions with Paypal, voting systems, and more.

Ethereum can also be used to build a decentralized autonomous organization (DAO) ,powered by programming code on a collection of smart contracts written on the Ethereum blockchain.

What are the most obvious advantages of Ethereum?

First, a third party cannot make changes to the data. The system is also tamper-proof and corruption-proof.

This is because Ethereum is based on a network formed around consensus, making censorship impossible.

Second, just like Bitcoin, Ethereum is backed by secure cryptography. Therefore, its applications are well protected against any form of hacking.

Why buy cryptocurrency?

As a digital asset that serves users online, cryptocurrency has many attractive benefits.

Some of them are due to the blockchain technology mentioned earlier.

It is a tightly monitored process with encrypted transactions and control that makes this online money a thing of the future.

There are many advantages of cryptocurrency, but for this review we will only talk about 2.

No third party interference

The first advantage of Cryptocurrency is the well-known “no third party involvement”.

There is always a pattern when you use traditional money to buy a new property, start your own business or buy a new car.

One way or another, the process requires the involvement of a third party. We are talking lawyers, owners, and some other external factors like delays, documentation, and additional fees.

This generally consumes unnecessary time, money, and energy, causing you to give up.

A good example of this scenario would be that you are buying a new home. You need to pay the financial advisor who generally advises your financial statement to make sure you have a stable income.

For some properties, you will have to pay a booking fee to “close” on the home of your choice and many other additional costs. In short, there are many third parties involved and you will be charged even before you own the property.

But this is not the case with cryptocurrency. As mentioned earlier, the blockchain system is similar to a database of proprietary rights.

The contract can be designed and enforced to exclude the third party involvement mentioned earlier. In addition, the contract can be customized to complete a specific transaction at a specific time at a fraction of the cost.

Yes, you can exclude third party involvement, in fact, you do not even need it.

In short, cryptocurrency puts you in control of your own money.

This is what we call a “decentralized” system, meaning that there is no “central or federal government” to regulate it for you.

Your transaction is virtually immune to any interference from your government and its clear manipulation.

So it is possible to pay and receive money anywhere in the world at any time.

This transaction is done with minimal processing fees, so users do not have to pay additional fees from banks or other financial institutions.

Less risk than traditional currencies.

Another outstanding advantage of cryptocurrency is its lower risk than traditional currencies.

In this day and age, most people rarely carry cash. Instead, they have a number of credit cards, debit cards, and other payment cards available to them as a means of payment.

There’s nothing wrong with that, unless the connection to the store’s server is interrupted or the machine is out of order and you, who do not have cash, are standing in line.

Lower risk than traditional currencies

Another outstanding advantage of cryptocurrency is its lower risk than traditional currencies.

In this day and age, most people rarely carry cash. Instead, they have a number of credit cards, debit cards, and other payment cards available as means of payment.

There’s nothing wrong with that, unless the connection to the store’s server is interrupted or the machine is out of order and you, who do not have cash, are standing in line.

The problem with these cards is that you give the recipient access to your entire credit line every time you make a purchase. Regardless of how small the amount of the transaction, the fact that you are giving someone your card to gain access to your account is already a form of ‘breach’.

Most of these ‘intrusions’ are nowadays considered safe through various security measures such as ‘PIN enabled’ or ‘Pay wave’ methods.

Then, the store initiates the payment by debiting the requested amount from your account using the information provided on your card.

Cryptocurrencies do not work this way. Instead of a “draw” mechanism, the amount to be paid or received is “pushed” to another cryptocurrency holder without requiring any additional information.

Payments are possible without having your personal information associated with the transaction. Your account can be secured and encrypted to ensure the safety of your money.

By giving users control over their transactions, the security of Bitcoin, Ethereum, or other cryptocurrencies is ensured for the network.

From the above , you probably already have an idea of how cryptocurrencies work and why they are currently trending. The cryptocurrency market is constantly fluctuating and almost every day new cryptocurrencies appear and some even die.

Some investors get lucky and others lose their money.

Yes, the cryptocurrency market is unpredictable and carries a lot of risk for its investors. But as predicted by experts, cryptocurrencies are on the rise and already have a known impact on the financial world. Institutional investors are starting to buy cryptocurrencies. Banks and governments are also starting to realize the potential of cryptocurrencies.

There are already many people buying Bitcoin as a hedge against the devaluation of fiat currencies.

Especially in Asia, the Bitcoin market is flourishing. More and more companies have come across the effectiveness of Ethereum as a smart contract or token. This shows how blockchain technology is slowly taking its place in businesses because of its security networks.

Cryptocurrencies are definitely an investment option to keep an eye on. Their use and acceptance is undoubtedly increasing, and one day it could prove to be the currency of the future!

The above report was last presented during launch of the book title :” Bitcoin Investment KnowHow Made Easy” by Hillary scholl , we wish to post again on Medium as the article gave an overview brief insight in the investment know how and will be serve a good guidance for some novice investor , Setting up an account with an exchange is very easy these day , but If one is considering entering the Bitcoin bubble, most experts suggest the ‘now rather than later’ approach. Any type of digital currency or stock market trading can be volatile. You just need to be aware of the risks and you must be willing to accept them.

Feeling Confused?

Not to worry you are not alone. One of the biggest issues with any digital currency is not knowing how to get started. We hope this will help you understand the latest status of working with this popular currency

#Disclaimer Note : This publication is not intended for use as a source of any financial , money making legal, medical or accounting advice. The information contained in this guide may be subject to laws in the United States and other jurisdictions. We suggest carefully reading the necessary terms of the services/products used before applying it to any activity which is, or may be, regulated. We do not assume any responsibility for what you choose to do with this information. This article is not meant for financial advice , Use with your own judgment.

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About the author

Estalontech

Estalontech is an Indie publisher with over 400 Book titles on Amazon KDP.Being a Publisher , it is normal for us to co author some of our publications with brainstorm on interesting contents which we will like to share on this paltform

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