Initial Thoughts Of A Newbie To Invest In Cryptocurrency
If you hear about cryptocurrency for the first time, you might hear negative news about it like it is criminals' money, it's a way of doing bad things and so on. Centralized media spreads things in such a way people start thinking in a negative way.
[Source](https://pixabay.com/photos/cryptocurrency-business-finance-3085139/)Maybe you see cryptocurrency price is going high very fast. You see your friends making a lot of money quickly investing in cryptocurrency. Then you start thinking it is a way to make money quickly. So you invest in cryptocurrency. Maybe you make some money selling cryptos when the price is high. You want to make more money, so you invest in cryptos more.
When the price starts going down, you feel bad. And you begin losing money because you get panic and withdraw your money when the price is low. From outside, it seems like that as a newbie.
When you learn about the technology behind the cryptocurrency, you realize that this is the future. And it is not a way to make some quick money. To do better in the future, you have to think long term, otherwise, you might make some money, but you will lose more.
Not only cryptocurrency, we see similar things on the stock market. Many people who do not know what they are doing start investing in the stock of different companies. And think the price would go up and they can earn money quickly. It creates the bubble and it usually bursts at some points.
[Source](https://pixabay.com/photos/marketing-graph-screen-exchange-4596071/)Whether you invest in the stock market or cryptocurrency, you have to know why it is going to be valuable in the future. What's going on behind the scene. To invest in a certain company's share, you need to know about the company, its progress, business model, capital structure, the possibility of growth, and so on. After doing your research and analysis, you can come to a conclusion.
When you invest in a particular cryptocurrency, you need to do the similar things. You just see the price goes up, it does not mean it would be a good investment. It can collapse at any time. You have to know what it offers, its application, community and user base. Without doing your own research, if you invest in something, you are taking risk that you are not aware of.
So what you do think about this? Please feel free to share your thoughts in the comment section. Thank you so much for reading this post.
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