Why You Shouldn’t Put All Your Investments Into Cryptocurrency

You shouldn’t put all your investments into cryptocurrency because there is no guarantee that the price will go up. However, investment is a great way of making money without working every day from 9 to 5.

Why cryptocurrencies are a popular investment

I could have written here, that it’s because cryptocurrency is decentralized, anonymous, immune to the inflation and many other wonderful things. But the true reason why investing in cryptocurrency has become so popular is the rapid growth in the price last year. Only a very small group of enthusiasts invests in cryptocurrency because they believe it is the future of the money. Most of us just want a quick profit.

All this crypto madness last year showed us that if it looks too good to be true, then most likely it is. Many people were sure that Bitcoin investments are a win-win: the price can’t go down, just up-up-up and to the Moon. Yet all those people were proven otherwise.

But it doesn’t mean that cryptocurrency is a bubble and you don’t have to buy it. Cryptocurrency’s crazy going up was provoked by huge masses of people who started to chaotically buy coins. And, of course, when so many energy is flowing into the market, the outflow is natural. If so much money would be invested in any other asset, the result would be the same. The situation on the cryptocurrency market now is more normal than what was happening in 2017.

Why cryptocurrency is not enough

First—cryptocurrency is the most volatile asset ever, and you may fall asleep really excited that your Bitcoin investment will bring tomorrow even higher profits, and in the morning, after checking the rates, may be nervously drinking coffee and thinking what to do now, when the coin you invested all your savings in has dropped half a price.

Second—all altcoins are dependent on Bitcoin. Bitcoin is going up, they are going up, Bitcoin is falling, they are falling as well. And Bitcoin trend is unpredictable. You invest in promising coin, but as soon as Bitcoin price starts to plunge, your coin is going down too. Doesn’t matter how carefully you have chosen the coin and how hard the team is working on its development—it all is tied to Bitcoin.

However, Bitcoin is not the only asset you can invest in. People got so crazy about cryptocurrency that the have forgotten about other ways to invest.

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To learn how to invest in cryptocurrency and not get a heart attack - read “Why You Shouldn’t Put All Your Investments Into Cryptocurrency” on Bonpay Blog.