Are cryptocurrencies no longer popular or interesting?

Are cryptocurrencies no longer popular or interesting?

September 9, 2022
3 months ago

Are cryptocurrencies no longer popular or interesting?

It only takes a glance at any newspaper, digital or paper, or surfing the Internet for a while to see that cryptocurrencies are still attracting quite a lot of attention. Unfortunately, the news tends to occur when something negative happens, which generates a permanent sense of distrust for those who are new to this sector. But are these assets no longer interesting? Here is a brief analysis so that you can have a more informed opinion and decide your future as an investor.

Moon's collapse: what has happened to cryptocurrencies?

One such news story took place recently, the cryptocurrency Luna plummeted 96.6% in a single day, breaking all records and putting the spotlight on the danger of investing in cryptocurrencies.

This currency had good expectations, but since the beginning of the war in Ukraine, its final fall began to take shape. Luna is a stablecoin cryptocurrency, i.e. stable. What does this mean? It has parity with another fiat currency, which in this case is the dollar.

In the case of Luna, the parity was maintained algorithmically, a complex mathematical system that balanced the price of the currency against the dollar. However, a certain mistrust was generated towards Luna, which led the algorithmic system to try to compensate for this deviation. But the fuse had already been lit, and those who had money invested in Luna began to dispose of those coins, causing a veritable hecatomb.

Luna lost almost all of its value and many people saw their savings disappear. Now, at best, the situation is still very difficult for these investors. However, there are lessons to be learned from everything. Investing in cryptocurrencies is always risky, but it is still an interesting exercise that can yield good returns.

The problem is that there is a lot of negative information when there is some kind of catastrophe with cryptocurrencies.

Most recently, there has been a 20% drop in the value of Bitcoin, the virtual currency par excellence. All this discourages many investors like you, who want to put in place the mechanisms to get some returns. Don't hesitate, cryptocurrencies are a good instrument in which to invest.

Risks of investing in crypto-currencies

Not that there is a distinct risk in cryptocurrencies, making an investment in commodities or in the foreign exchange market can also involve some risk.

Mainly, and to make it clear to you, the risks of investing in cryptocurrencies are based on 3 premises. The first of these is well known to everyone, we are talking about volatility.

The general fluctuations of cryptocurrencies are usually one of the drawbacks when it comes to investing. Although Luna's case is extreme, we have never seen anything like it before, it is true that virtual currencies are not usually as stable as other types of assets.

On the other hand, it is interesting to bear in mind that one of the risks associated with investing in cryptocurrencies is the lack of knowledge about them. Anyone who invests a large amount of money in cryptocurrencies without having the slightest knowledge of how they work is paving the way for a major setback.

Last but not least, there is a risk associated with investing in cryptocurrencies that you should not overlook: scams.

Many sites promise very high returns for a relatively small investment. That's enough to make you think, they can take your money and disappear.

There are also many online business opportunities where you have to put your cryptocurrency investment into some kind of fund or exchange and then disappear. You should always be very careful in this regard and trust fully verified exchanges and shy away from promises of high returns.

Are they a good asset to invest in?

If you want a quick answer to the question of whether cryptocurrencies are a good asset to invest in, the answer is yes. To do so, we must always do so under the best conditions and bearing in mind that they are emerging assets that still have a long way to go.

Thanks to cryptocurrencies, many people have started a path in the world of investment, as it is possible to start with very little money. You don't need to risk your savings in order to get an idea of what these assets are like. Obviously, we must avoid the mistake of introducing large amounts because some kind of guru has said so.

We never tire of repeating that education is the only way to ensure that your investments, whether in virtual currencies or any other type of asset, are safe.

Moreover, it is not advisable to focus only on one type of asset, but to try to diversify your portfolio as much as possible. If you are going to focus on the world of cryptocurrencies, you can make investments in some of them, but bearing in mind that most of these virtual currencies take Bitcoin as a reference.

It is also worth investigating other types of markets such as foreign exchange or commodities, so you can compare one with the other and go for a learning experience that can always come in handy.

So, cryptocurrencies are a good asset to invest in as long as you have a solid background and do not try to make a quick profit in a very short time.

This can happen because they are very volatile currencies, and therein lies both their danger and their magic, you can make a lot of money in a very short time if you make the investment at the right time.

But you can also lose it, so caution will always be your best weapon so that you can take small steps in a really exciting world. Cryptocurrencies have a lot to say in the future and can change the way we relate to money.

If you are thinking about investing in cryptocurrencies, we recommend you join NAGA, which offers a NAGA account. DEMO account with $10,000 so you can test yourself before using real money. In addition, you can earn money by helping others earn money, by sharing your trades, or by copying the trades of more experienced traders. Discover the benefits of social trading. Trader Channel.

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