When everyone around talks about the desire or need to invest in cryptocurrency, in fact, the moment has long been lost. For this reason, investing right now is a rather dubious undertaking. Especially against the background of the fact that bad times have come in the crypto industry today. For example, UK Financial Supervision Authority Restricts Binance. What are some additional reasons why investing today is a dubious idea?
Cryptocurrency price
Firstly, if we talk about the price of a cryptocurrency (Bitcoin, for example), then it can freely cost 50t euros today, just like 1 euro. There is no relationship between the price of Bitcoin and its practical component. Its value today is determined solely by the rush demand due to the desire of investors to find high-yielding assets.
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Secondly, today cryptocurrencies do not yet have any practical component. As a means of payment, this is an expensive, long and inconvenient instrument, not to mention the fact that it is accepted in few places. About the high cost, in general, look at how much it costs today to process a transaction in Bitcoins. You can enter a query into google: cost transaction processing with bitcoin and get the following answer:
They are talking about $60 per transaction. In other sources I found $ 9 per piece, but in any case, today it has become a very expensive means of payment. Thus, the argument about a free, cheap and convenient way to pay with Bitcoin falls off.
An exception regarding the practical use is perhaps NFT tokens / technology, which have found their application in verifying digital content and the ability to resell it with the transfer of authorship, but there is no connection with Bitcoin.
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If you want more arguments why Bitcoin is no longer a revolutionary technology, then read my previous Article about bitcoin. There are still many questions about technology, exchanges and so on. So I'll get to the point.
Investment Recommendations
If you still really want to get into the crypto industry and start investing? I would then recommend that you select exceptionally worthwhile projects and micro-invest every week. Yes, you won't make millions, but you won't lose all your money either. Micro-investing works great on Revolut, you can set up automatic payments in Bitcoin, Ethereum, Tezos every week. You will be able to invest in small parts and buy an asset at different points in time at different prices. Thus, getting the best average price for your position, which means you significantly reduce the risk of losing money or sinking.
Despite the hellish volatility in the aforementioned currencies, I managed to make some money at first. The amounts were quite modest. After a rapid fall, I continued this tactic and it feels like it will work very well.
Among the projects that I continue to micro-invest in on Kraken are the following items: Polkadot, Kusama, Mina, Ethereum, Bitcoin, Lumen, The Graph, Uniswap, Cardano. NB! In fact, these projects - coins can be very bad :), but in any case, this is all that we have managed to dig up in this garbage bag so far. Plus, as you can see, I threw some more coins on Staking, but it’s probably worth writing a separate article about it.
Write in the comments what you use and how you invest in cryptocurrency during this turbulent time. I also recommend that you take a look at our articleabout how to start investing.