The fundamental question that worries both beginners and professionals is “What cryptocurrency to invest in and what are the risks of losing all savings.” Today we will talk about risks and how to minimize them.
What cryptocurrency is better to invest in and is it worth doing?
Every day the number of people learning about what cryptocurrency is and ready to get additional income is skyrocketing. We can find examples when people invested several hundred dollars in digital assets, and after a couple of years, they became millionaires.
On the other hand, we all heard about the fact that cryptocurrency is a highly volatile asset due to which the price can jump, rise sharply high, and also fall rapidly. Well, how to make money if the chance to earn is equivalent to the possibility of losing everything?
We will talk in more detail about how to invest in cryptocurrency correctly, what risks are and how to avoid them to increase the chances to make money on cryptocurrency.
Who will win
Unfortunately, there is simply no way to give a clear answer which cryptocurrency to invest in. Digital asset trends change daily. This is because of several reasons:
- the emergence of new digital coins;
- changes in supply and demand indicators;
- changes in the legislative regulation of the turnover of cryptocurrencies;
- hard forks (updates) of existing cryptocurrency systems.
Various information sources predict the future of digital coins and try to identify the most promising cryptocurrencies for investment. In many ways, their forecasts coincide, and among the leaders are Bitcoin, Ethereum, Litecoin, Ripple. All these coins have been on cryptocurrency stocks for several years, and many have already got their income and even withdrawn money.
Here are some advice on investing in a new cryptocurrency.
The first and obvious option to make money on a new token, for example, Fuji, is by buying FJT coins at a low price to further sell them at a high price — crypto trading. You can buy cryptocurrency on a pre-sale at a reduced price and sell it on the exchange. You can register on the exchange and work independently, or you can invest through a broker.
It is advisable to undergo training to understand how the exchange platform works, to learn the secrets of trading FJT cryptocurrency to significantly reduce the risks of losses.
You can independently find all the necessary information about Fuji token on Twitter https://twitter.com/fjtfuji or Telegram https://t.me/fuji_company channel. It would be better to talk about risks related to cryptocurrency.
Investing in cryptocurrency today — risks and prospects
Cryptocurrency is a highly volatile asset. Its price can change dramatically, both rise and fall. The interest of users supports solely the value of the vast majority of digital currencies. If users will lose the interest in this asset, then it will completely devalue. But until that happens, it has advantages over fiat as decentralization, anonymity, and low fees. Therefore, interest in these assets does not fade away, and the risks remain. Let’s study the major risks associated with cryptocurrency.
Theft or loss by negligence
If an attacker gains access to the investor’s private secret key, he can steal absolutely the entire contents of the crypto wallet. This can be dealt with by storing private keys in a so-called “cold wallet”. But there were cases when users simply forgot or lost access to wallets, and could not get their crypto assets back. The same commonplace risk is when the hard disk of the computer breaks down and the file with the secret keys is deleted.
Virtual Currency Fraud
Since the invention of the first Bitcoin cryptocurrency, its adoption has grown exponentially. This currency is used all over the world and even new crypto assets are striving to gain such popularity among users. Because of this, the number of scammers who want to make money on this is also increasing.
Potential investors should be wary when someone promises them guaranteed high returns. Phishing is also a popular method of scamming with virtual currency today. This is perhaps one of the most widespread methods of getting the personal information of users by hackers. Fraudsters often use e-mail, where, under various pretexts, they ask gullible users to follow any links or enter their confidential data. When they get your data, they hack into your wallets and steal cryptocurrency.
Risky Value (VAR)
Fluctuations in the value of cryptocurrencies are generally almost unpredictable in the short term, and this adds to their riskiness. Financial professionals can relatively accurately predict the value of the euro, dollar, and other real currencies or stock quotes. But no one can accurately predict what the value of a crypto asset will be tomorrow. Different calculation methods give different results, but predicting the VAR for cryptocurrencies is quite difficult.
The Bottom Line
Investing in cryptocurrency, be it the famous Bitcoin or the completely new Fuji cryptocurrency, is a type of earnings that requires knowledge and experience. You can earn passive income with cryptocurrency by investing in mining equipment, or support a startup on the Fuji platform while receiving passive income from the growth of the FJT coin.
Unfortunately, it is impossible to say unequivocally that these investments do not carry risks and you will not lose your money because trends in the cryptocurrency market change daily. When choosing a cryptocurrency for investment, rely on the current state of affairs. Then the chance to make a profitable investment will increase significantly, and the risks of losing crypto assets will decrease.