To buy or not to buy?
Crypto currency “To buy or not to buy” that is the question on the lips of anyone who believes they have the ability to make a quick buck trading cryptocurrency. If you have tinkered in Forex in the past you will probably be better placed to understand how things don’t just fluctuate but literally slam into reverse before your very eyes. The safety net with Forex is that generally, not always I hasten to add, the fluctuations are fairly small. In cryptocurrency as is plainly seen over the past 3 months the fluctuations can be massive.
It is here the temptation becomes great. If back in 2009 you’d got yourself a bitcoin or two for the poultry sum of 12p a coin, yes you are currently a millionaire or more. Bitcoin reached the dizzy height of over €16,000 in December 2017 and is currently trading at about €11k. Ethereum has tripled in price in the same time, currently offering at just over €1,000 a coin. So while it seems they are stable, at least the main ones like ripple, litecoin, ethereal, bitcoin, cash etc, there are new kids on the block that are trying to raise capital and hoping to get in on this revolutionary new tech. There are 1400 currently active crypto currencies out there and new ones pop up all the time, they are fairly simple to create, at least that’s what they say although I would suggest yours may not sell so well you’d need to brainbox your way through some serious programming though.
Trading is in itself simple you need to register on a DCE – Digital Currency Exchange, Coinbase is one of the well known and fairly straight forward to use. Once in and running you just need to swap your cash into digital currency and play the game win or lose. I would warn you of a couple of things. Firstly use money you can absolutely lose because it is a fact most people don’t make a fortune, you may get lucky. Secondly make sure you keep your password safe in fact don’t leave it on your computer if you lose that password or someone gets it and hacks/changes it, your money is gone within seconds. Finally if ever you lose the password there is no way to get it back or reset it. The whole idea behind blockchain is that is secure so secure that the ledgers cannot be changed by anyone unless you have the password. This is the USP it makes fraud almost impossible because of how the blockchain works. It is also a sad fact that not following these simple rules has led to people losing their money when changing computers, not backing up data or whatever and you will never, repeat never get it back.
Other than that do what you need to do and keep an eye on it. If there is any doubt than swap it back into hard cash in your bank until your doubt is gone. Of course it is up to you, after all it’s your money. For more advice on Fintech read our information page here Acquarius Fintech. Or drop us an email here.