Crypto gurus are going to hate me. Some are probably going to swear at me for writing this article on why I chose to shy away from Cryptocurrencies when it's quite literally one of the fastest ways to make money online today.
I agree that Cryptocurrencies are one of the most effective ways to make money online, given that they are growing exponentially in popularity. These digital assets have all performed well on the whole, with Bitcoin and Ethereum leading the charge. This concept of cryptocurrencies is at the forefront of most financial technologies today and has kicked up a huge load of hype, drawing both professional and retail investors into the game. Even amateur investors jumped onto the bandwagon, hoping to make a share of the pie. This method, among the many ways to make money online, shot to fame to become the most sought-after way to make money online, especially among younger generations. Billions of dollars poured into the arena as a result. Many made extraordinary gains overnight and became instant millionaires even before they were ready to become one.
So what're cryptocurrencies trading and how does it work?
A cryptocurrency is a form of electronic money that does not rely on banks to verify transactions. It is a system that enables anybody from just about anywhere to get into cryptocurrencies, trade, and make money. Blockchain technology is the technology powering cryptocurrencies. It is a shared, absolute ledger that facilitates the process of recording transactions and tracking assets in a business network.
Lost me? I'm not surprised.
But how can you make money from something when you can't understand the basics of that technology? How can this end up being one of the top ways to make money online? Amazingly (and alarmingly), that is possible. And that, my friend, is exactly why I'm shying away from this concept and moving to other ways to make money online.
Reason 1: Wild fluctuations in prices
When the prices of cryptocurrencies go up, they can take a parabolic trajectory upwards, and that's how some people can make obscenely huge amounts of money in very short periods. Many of them were just there on the bandwagon at the right time. I guess the element of Luck was there with those guys when they learned about this as one of the fastest ways of making money online. When the market entered a stage of euphoria, that's when everyone loses their minds - it's fuelled by emotions, not logic. The higher the prices go, the more people tend to rush in, partly due to FOMO (fear of missing out). Seriously when prices are high, the worst thing you can do is to pump in your money in the hope that it goes even higher. Then some analyst shows up and makes some predictions that it'll go even higher like it's a phenomenon that has never been observed in the last hundred years. Then more people jumped in with their monies and the euphoria grew into absolute jubilation.
Then shit happens, and the trend reverses. There's a saying in trading - the bulls take the stairs, but the bears go through the window. It's the same for cryptocurrencies too. For those people who sunk in enough cash when the market was at an all-time high, I have them in my prayers. I hope they would make it out of the mess in one piece. It's going to be easier said than done since we're talking about TRILLIONS of dollars being wiped off the market within an even shorter time frame compared to the uptrend. Lots of retail investors find themselves ripped into shreds before they even knew what happened.
If you're going to put your money into Crypto, you need a very comprehensive plan, and you need to have a strong heart. Among the many ways to make money online, this is one of the riskiest ways because you can lose a lot in a very short time. If you need any kind of information on this article related topic click here: crypto to crypto exchange