When Bitcoin was first launched in 2009, not a lot of people accepted the coin or the cryptocurrency market. Only cryptography fans sent it to each other (and that was just a hobby). In 2010, the first bitcoin transaction happened. 10,000 BTC was used to purchase two boxes of pizza.
Eleven years later, that amount of Bitcoin is now worth over $600 million. If only Laszlo Hanyecz had held off on his hunger, his net worth would be up by hundreds of dollars. Laszlo’s story should be a call to action for people to buy XRP and other crypto tokens. However, the majority of Americans (over 60%) do not have any cryptocurrency investment.
Most of these people without crypto investment are considered as being crypto-curious. This means that they want to have an understanding of cryptocurrency before they invest their hard-earned money.
Why Are People Investing In Cryptocurrency?
According to a report from Gemini, the percentage of Americans who have investments in cryptocurrency is only about 14%. Another 63% of the population are crypto-curious, while the rest, 23%, are not interested. So, what makes the difference between each of these categories of people? Why are some people investing in cryptocurrency and making so much from it?
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Potential for Long-term Growth
If everyone in 2010 could take a peek into the future, many people would have bought Bitcoin. Since it is impossible to rewind time, people are now seizing present opportunities to secure their future. The potential for crypto tokens to increase after a long time is the most viable reason for cryptocurrency investments. People can invest a small amount of money and get massive ROI, especially on volatile tokens.
This potential for long-term growth means that people do not have to wait till the value of a coin like Ethereum or XRP is low. You can invest at any time and still make a profit. The flip side to this is that investors have to remain interested in that coin for its value to keep increasing. Sadly, there is no tool to measure if people will still be interested for a long time; hence, there is no guarantee.
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Quick Increase
Everyone wants to achieve quick success, and cryptocurrency offers people that opportunity. The value of crypto tokens tends to increase exponentially in a short time. Because of this, many people want to take advantage of this increase and expand their finances. Although making money this way can be risky, it is one of the most common reasons people invest in cryptocurrency.
To make money in a short time from cryptocurrency requires precision. You need to understand the rise and fall in the market. Adept understanding of how the market works will help you make better decisions.
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Investment Excitement
Cryptocurrency offers the opportunity for people to grow their wealth, and this is enough reason for anyone to be happy. The joy that comes from seeing your money grow is why people invest in cryptocurrency.
How Can Cryptocurrency Be Profitable?
There are several ways to earn from cryptocurrency. The most common way is to buy and keep it for a long time. However, you can also trade one token for another token or a currency. In addition, you can also participate in online tasks or games that reward you with cryptocurrency.
You can work for a cryptocurrency company or one that pays in cryptocurrency. You can earn from creating cryptocurrency content or managing crypto communities. The prospects are endless; arbitrage and faucets are other viable alternatives. Lastly, you can also trade cryptocurrencies.
How to Start Investing In Cryptocurrency
The cryptocurrency world is advancing every day. Tokens are increasing in value, but it is never too late to start investing. If you want to start investing in cryptocurrency, here are a few tips that will help you;
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Invest only a percentage of your earnings, and it should be what you don’t mind losing.
There are several cryptocurrency tokens in the cryptocurrency market today. Only a handful of them has the potential for long-term growth. As much as you can earn, you can also lose your cryptocurrency investment.
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Have a separate emergency fund
People often panic-sell when the Ethereum price or the pice of another big coinis crashing. They don’t want to lose their investment, so they sell at a loss. Having an emergency fund allows you to handle such things without dipping into your investment.
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Do research and market analysis before investing in any token
Your research will allow you to find tokens that have good potential and make profits from your investment.
The decision to invest in cryptocurrency is an individual choice. If you are crypto-curious, ensure that you do your research before investing in any token. Doing your research is like making hay while the sun shines. If you do this, you will make gains while the coins rise.