Cryptocurrencies have been receiving quite a bad write up so far in 2019, with prices at considerable lows in comparison to their positions coming into 2018. Similarly, many of those who are now making large returns in crypto invested years ago, before the boom in popularity, so does this mean it is now no longer worth any new investors making their way into the space? In fact, 2019 still presents a great time to take your first steps and get involved in the market. The technologies that form the foundations of cryptocurrencies are ever-growing in prominence through their new applications and whilst the market does fluctuate, like any other financial market, making an investment with long-term outlooks makes for a profitable investment.
Increased information and accessibility
One reason to make the leap into the cryptocurrency market is the ever-increasing wealth of information that is at your disposal to make the most informed decisions you can. When the first decentralised, and now most widely recognised, cryptocurrency, bitcoin, was created in 2009, far less information about the market and alternative coins existed due to the relative obscurity of this market. As more and more people have chosen to invest, making both gains and losses, we have begun to learn more about the workings of the market. Due to the unregulated of nature of the space, it is not possible to entirely predict market fluctuations, but the experiences of previous traders are widely documented online and can provide a good starting place if you want to take your first steps. Because market information and the experiences of others are becoming more widely-known, the space is becoming more accessible to those wanting to scratch the surface of the area. Similarly, individuals with first hand experience may also be able to provide personal advice, and organisations exist that can actively manage your investment for you if you would prefer a less-hands on approach and to utilise the expertise of those well-versed in the markets, but always remember to only invest within your means.
The possibilities of blockchain
Whilst investing in cryptocurrencies is still a viable option for the future, investing in blockchain, the underlying technologies associated with cryptocurrencies, may prove to be a just as profitable investment. Whilst blockchain was initially created to combat the “double spending” that can occur with digital currencies, it’s potential applications are seemingly endless. Start-ups are emerging in the UK, US and all over Europe, among other areas of the globe, that are utilising blockchain to get ahead in their respective fields. Banking is not the only sector blockchain is being used it, the technology is appearing in education, charity and healthcare to simplify and advance processes. Not only is investing in cryptocurrencies a viable option, investing in their underlying technologies is also a profitable choice as these are pushing into wide-variety of industries with technology set to benefit the future generations.
What about the long term?
It is widely documented that cryptocurrencies are volatile and unpredictable – with many outsiders using this as the prime reason to deter you from investing. It is undeniable that volatility exists as the market has fluctuated considerably over the past year, but this should not be your main reason for not investing. If you look at the market with a fine tooth comb each day, you will worry at every small market drop, and may even panic sell at a lower price. In reality, the more beneficial action here would be to take a step back and hold until the price recovers, or goes even higher, or to consult a trusted advisor and consider the strength of other coins as many are ‘pegged’ to the price of bitcoin. Today, a more beneficial crypto investment could be to consider investing in a smaller altcoin that has the possibility of rising as this could bring about more gains that one of the bigger coins such as Bitcoin, Ethereum and Ripple which trade for a much higher price. With blockchain technologies taking hold in established industries, these too pose a great investment for those looking in the long term.
~Novel Serialisation: Heavens Fire~
Despite the recent low market prices, an investment in cryptocurrency is still one that should be high on your list. The volume of information and experience available to you at the touch of a button can guide you through your first steps and help to ensure you make the right decisions for your proposed investment. Always consider the long-term benefits of an investment in cryptocurrencies and do not get too bogged down in the day to day fluctuations, this doesn’t always accurately reflect what is happening in the wider picture. The bubble surrounding cryptocurrency and blockchain definitely doesn’t seem to be bursting so why not take the leap into this space today!
By Reece Hobson, Group Sales Manager at Quantatex
About the author
Reece has successfully led a number of teams in financial services for the past 5 years. Those teams have involved account management, relationship management and compliance. As Group Sales Manager, his main responsibility is to ensure a high quality of service is delivered to Quantatex’s clients.
Quantatex is a new to market, actively managed alternative investment account which allows investors to begin capitalising on opportunities in the blockchain space quickly, simply and efficiently, without needing to spend time developing their own understanding of this often complex area of trading. The team comprises skilled traders and qualified analysts, who collectively have over 50 years of experience in financial markets and bring to bear techniques and strategies, developed over years in the equity, FX and commodity markets. For more information visit www.quantatex.com
