Many people and businesses use cryptocurrencies today to make transactions and as an investment. Cryptocurrencies are known to be a much more secure way of making transactions, and are commonly a fool-proof way to prevent counterfeit currency. Companies such as McDonald’s, Expedia, Overstock, and Microsoft already accept cryptocurrencies as a form of payment, among many other large companies.
Like any trend in technology, the cryptocurrency market is constantly changing and developing. New types of blockchain are appearing every year, while the well-known “originals” — bitcoin, litecoin, etc. — continue to be monitored closely. The question for many seasoned investors and those new to the scene is: which cryptocurrency is the right one to buy? Is the value going to drop or skyrocket? Is this market going to stay alive?
Unfortunately, there’s no perfect answer to any of those questions.
Such is the situation with any investment, however. There’s no guarantee that any company you invest in today will be here tomorrow. Giants like Toys R Us have gone under, Macy’s is shutting down stores, and plenty of others that people saw as “too big to fail” have indeed failed. In reality, there isn’t one company that is completely infallible. The economy is made up of many interconnected pieces, and a domino effect is always possible (though a major one isn’t extremely likely).
With that in mind, the thought of investing in cryptocurrency shouldn’t seem so unstable or risky. Any investment is a risk. Still, there is a multitude of options within this market so it’s difficult to wade through and know which one(s) to invest in.
One study shows that many U.S. states and cities vary quite a bit when it comes to their cryptocurrency preferences. Just like in any investment market, some investors want to back the tried and true option, while others want to get in on the ground floor of the “next big thing.” Interestingly, many are looking for information on newer, smaller coins, like TRON or Tether.
As companies start to pay more attention towards cryptocurrencies and how to manage them, then it should be safe to assume that the greater society will shift towards cryptocurrencies in the future even more. Forbes predicts that these currencies will become more mainstream, as the popularity of digital wallets has increased in the past few years. Something like Venmo probably seemed very farfetched when it was first pitched, but now it’s used by around 40 million people.
If you decide to invest, do it carefully. As with any investment decision, purchasing cryptocurrency should be done after research and with caution. Don’t make an investment because it seems like “the thing to do” — be intentional with where you put your money, and what you expect to happen to it. Markets are always up and down. Be aware that you probably won’t make millions in a week — pay attention to the long-term trend of your investments, and make decisions from there.