Recently we have witnessed an unprecedented boom in the crypto market. The prices were skyrocketing and it attracted a lot of attention. There was a noticeable increase of interest among people who did not show any crypto enthusiasm before and now they express a desire to invest in Bitcoin or any other cryptocurrency. However, it is understandable. It seems that if you enter the Crypto World now, you can suddenly make a fortune. On the other hand, some people still have doubts about cryptocurrency investment. Probably the most significant one is the lack of understanding if it is too late to invest in crypto or not.
Usually experts in crypto investments advise avoiding making impulsive purchases. The fact that this topic is highly popular now is not enough for investing in cryptocurrency. However, if you feel interested in this subject, ready to spend some time looking for the information and put your extra savings at risk, there are no reasons to postpone any longer.
There are a couple of things that should be taken into consideration before investing. First of all, cryptocurrency is volatile. This means that prices go up and down fast and for various reasons. This concerns all the coins, no matter how long they exist. The other thing about prices is that it is almost impossible to predict them or find the best crypto to invest in now. All we can do is to follow the current trends.
The next important thing is to choose the project for investments. Nowadays there is a number of opportunities. There are coins and tokens. Coins (like Bitcoin or Ethereum) have their own blockchain and can be used on different services as payment. Tokens (Eg.: Tether, Uniswap) are built on another blockchain and used for various purposes within one platform or app (for example, for voting).
Some cryptocurrencies can serve as an alternative to money. Others have more unconventional ideas standing behind them. For example, NFTs or DeFi projects.
Even though NFTs (non-fungible tokens) are tokens too, these are unique. So they cannot be substituted with one another. They can be used for verification or purchased as a collectible (Eg.: Crypto Kitties).
DeFi or Decentralized Finance is also an interesting phenomenon of the Crypto World. It provides an alternative financial system for people who do not have access to banks but have an internet connection. The idea of eliminating banks as the third party became very trendy during the pandemic of 2020. DeFi gained huge popularity in 2020. Qiao Wang, the crypto trader and analyst, called DeFi tokens “the investment opportunity of the decade.” According to him, DeFi projects should be the number one investment choice today, just like Bitcoin should have been in 2013 or Ethereum in 2015.
New projects appear almost every day. Undoubtedly, it is very easy to invest in a newborn project. If you manage to get crypto before the hype, you can break a big score in the future. At the same time, this implies higher risks. Not all these projects are going to become successful. On the other hand, some of them like Bitcoin can become very rewarding in spite of all the bad prognoses. If the BTC price goes up, you can hear critics saying that it is just a bubble. When it goes down, you can hear a lot of ‘it is going to crash’ kind of forecasts. Nonetheless, as we can see, it keeps growing. But at the same time it is crucial to keep in mind that it is not a common rule in the Crypto World. Not all projects follow Bitcoin footsteps. Thus, it is only logical that most people prefer to invest in well-known and working projects.
In the crypto market as well as in the regular market there are analytical instruments that are helpful when it comes to making decisions. But as we said before, the crypto market is volatile. Sometimes unforeseen factors appear and influence the situation. For example, this is exactly what happened with DOGE, when Elon Musk suddenly showed his support to the coin. Luckily to DOGE owners the price soared. However, this was the factor that could not have been predicted.
To sum up, it is really never too late to invest in crypto. The biggest problem with crypto investments is to decide which cryptocurrency to choose. At this point, no one can give any reasonable advice, because these decisions are unique for each investor.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.