Reading Time: 6 minutes

Is Another Bitcoin Crash Coming?

Wait! Don’t freak out… yet. The past few years have had Bitcoin and other cryptocurrencies thrown against the rocks, sometimes taking critical hits and other times flying high. In the realm of social media, people can influence markets, prices, stocks, and more – just ask Elon Musk, potentially the biggest free advert any meme, currency, or digital currency could ask for.

Articles like these are often formulated to make Bitcoin investors sweat, force them to rethink their position and investments, and more commonly, click on the article. Unfortunately, that’s not my writing style. If you’re going to click on this article, it’s to find value in the information presented. I’m going to bring you up to date – relevant information on the cryptocurrency markets, how a Bitcoin crash COULD happen and how the world will react if it does.

I’ll cover topics like El Salvador, Shiba Inu and how the cryptocurrency market was in 2021. Information sourced from outside 2022 is only historical; please note this is NOT investment advice. I’m going to bolden a sentence later in the article. When you read it, you’ll know why we’ve put this disclaimer here. From Wall Street to BitPrime, here’s my take on if another Bitcoin crash is coming.

Firstly, before we dive into the well-informed research, let’s have a look at what Google has to offer us if we were to google this question:

is another bitcoin crash coming?

It’s the easiest research you could ever get, right? Google has algorithms that promote relevant, helpful articles like these, but all it does is nurture financial fear, relying on that solely to report such a dense topic, often in 500 words or less.

 

How Could a Bitcoin Crash Happen

The main reason questions like these are asked is that people are always scared their investments won’t pay off, and fair enough, you take a financial risk for every investment you make. Speculating on possible returns can be intimidating unless you do enough research; the Google search above doesn’t represent sufficient research. So, why are people speculating a crash? Forecasts can create different results, but if we are to look at the price of Bitcoin as seen below:

bitcoin crashes

During a 12-month period, that price has increased by 24%. How does this create panic? Well, if you look at the distribution from March 2021, it sat around $90,000 in November 2021, but from there, it takes a hefty drop. Factors contributing to this are mainly China’s government crackdown, unpredictable tweets and other external interventions.

September brought a $10,000 sting by El Salvador adopting it as legal tender. You can see that twice in 2021 – almost all crypto gains were lost, however like every economic recession – a boom was to follow, and that principle rings true again. Crypto traders have continually fought back against the dips. There is no solid evidence that crypto will just fall off the side of a cliff one day.

Crashes happen in every market – but the considerable speculation that it will cause “The Mother Of All Crashes” (Michael Burry) isn’t warranted until a more in-depth analysis is done at a later date. There is far too much speculation over too few facts.

 

Reasons Bitcoin can Crash in 2022

A big reason I would say that Bitcoin could crash is ironically one of the main reasons it’s been so successful – Government Intervention (or lack thereof). The most notable attack on Bitcoin was by the Chinese Government, which essentially banned crypto mining in June 2021. Therefore the Chinese crypto miners had to migrate to other networks, which saw the decline in network hash rates. Many people speculated this to mean the beginning of a more significant crypto crash.

Shiba Inu is up next – and for this, we’re going to use some stock market terminology, the ‘greater fool’ theory, which essentially means that one can make money by buying overvalued assets and selling them for a profit later on. That illusion has been broken with Shiba Inu – after Elon blew them out of the water with one singular tweet. Nearly one year on their market cap has dropped 59% from 39 million to 12.5 million. You can see that many forecasters and predictors are trying to build a bridge between Shiba Inu and Bitcoin – using the former as an example to ‘warn’ prospective investors or current ones.

The next term I will use is economically inclined, but bear with me: first-mover advantage, something Bitcoin has that almost any other crypto doesn’t (except for Ethereum). Because they occupy the largest market share in the crypto market, Bitcoin can dictate price and indirectly affect other cryptocurrencies. This means that when you compare Bitcoin to Shiba Inu, it is unfair to draw comparisons when one is well-established and the other a ‘meme’ currency that has already wiped three fifths off their market cap in six months.

 

Who Will Benefit if Bitcoin Crashes?

This is definitely one of my favourite questions because who’s winning and who’s losing if it happens? There are two main answers you’ll find when looking for the beneficiaries of a Bitcoin crash.

  1. People who short before Bitcoin crashes and buy the dip will make existential wealth.
  2. Those who predicted the crash will be labelled heroes.

Neither satisfies me enough; we have seen crypto take some decent concussions recently but bounce back impressively. So, long-term investors with a buy-and-hold strategy aren’t too worried about dips because they are playing the long game. Everyone knows crypto can be volatile; that’s why it’s so popular. People have earned monumental gains from it. Investors shouldn’t act rashly in accordance to dips, don’t switch up your strategy because of one article or one dip. I spoke in my other article on Risk, Research and Relevance:

Risk

Risk means don’t invest more money in investments than you can afford to lose! Due to its high volatility, be well informed before making final decisions.

Research 

Know what you’re buying into before biting at the bait! You should know the company/developers before you buy because you’re putting your trust in them when investing in something.

Relevance

Relevance is the information you are seeking. It’s vital to ensure that you’re reading verified, timely information to infer your decisions when browsing the latest news.

Top Tips

This can be important because dips are going to happen, and if you’re stressing out watching your crypto every day – you may just have too much riding on it. Volatility can be challenging for individual investors because an investment is more than just an asset to you. It’s fixed parts of your income committed to hopefully making some money back. There is no doubt that fluctuations will continue to happen with the onslaught of COVID-19 and the slow introduction to more government intervention (especially from the United States).

“We just bought the dip” – The President of El Salvador Tweeted, yes, the leader of a country tweeted that. And buy the dip they did, 410 Bitcoin for USD 15 Million (worth $23 million now), so firstly they became the first country to adopt it as a legal tender, and now they’ve put 15 million dollars into it. Other governments are working on regulations, while El Salvador is getting it as mainstream as possible in the country.

Elon Musk – need I say any more? He has become a sort of Crypto Daimyo. He has long been involved with crypto and is partially responsible for the success of meme coins like Shiba Inu and Dogecoin, and also the downfall of others. He has drawn widespread criticism for his involvement in crypto and adding to the market’s volatility. His company Tesla bought 1.5 Billion dollars worth of Bitcoin in 2021. It saw the price increase by 20% – the ‘Musk Effect’ has become a great asset to start up cryptos that happen to make it big based on a breed of dog or a meme he finds funny. Scary Stuff!

 

Predictions for Crypto

Bitcoin price predictions have flooded almost every platform – there’s nothing humans enjoy more than insurance, security etc. If someone can offer us a Plan B, we blindly tend to take it. This can be dangerous because if you are receiving public information, you can guarantee that many other people are getting the same knowledge, which decreases your possible capitalisation (You found it!).

The crypto market has outlasted all speculation so far, so to warrant any real worry would be disingenuous. Despite all price changes and volatility, Bitcoin is still worth double what it was a few years ago. I wouldn’t be surprised if we see Bitcoin tank and then boom up to $100,000. It is just designed to bounce back. Most predictions vary; surprised? There is currently almost 19 million bitcoin in circulation, with minting stopping at 21 million. The fixed supply with increased demand is what will push Bitcoin’s value through the roof as we move through this year.

One estimate has Bitcoin at 12.5 Million by 2031! That’s if we make it that far! Crypto is continuing to become more mainstream to its benefit. Bear in mind, when you read any predictions, they are analysed of about a 10-year data log of previous increases and dips and forecasted from that – very rarely can one accurately predict proper price points without ending the sentence with “I think”. So that’s the rundown from me. Now you’ve read this article and put your mind at ease, what’s the next step?

It’s time to think about applying for a BitPrime account – we make crypto investments affordable, simple and always ensure your best needs are met. If you’re just getting started, I recommend reading this article covering how it works, or if you’re more curious, try Cryptocurrency: Why to consider it now and how to get started safely. It’s a great time to be in digital assets and an even better time to be a BitPrime customer. Our website has everything you need and more to get you started and on your way to success, and if you feel like reading more, check out our blog. That’s where you’ll find me; I hope to see you there.


About the author:

Austin Watene is a writer who has collaborated with a multitude of different partners in Business, Social Media and News Companies. He produces quality content in which he aims to resonate with viewers, or at least raise their eyebrows to the new opportunities of tomorrow.

Disclaimer:

The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.

 

Last updated: 17/02/2022

Reading Time: 6 minutes

Global Cryptocurrency Adoption

The 2021 Geography of Cryptocurrency Report
The 2021 Geography of Cryptocurrency Report. Analysis of Geographic Trends in Cryptocurrency Adoption and Usage. Click the image for the full report.

There has been a wave gradually building for a very long time, and it’s beginning to reach the shoreline as 2021 sets on us all. It’s the global adoption of cryptocurrency, and it’s going to sweep us all away as time goes on. As we continue to evolve, we find new ways to make things more efficient, more attainable and less time consuming than previous editions of society. Enter: Cryptocurrency. The revolution that has been highlighted in its largest capacity ever, in 2021. But how did the world around us react to this new revolution? Click the above image for a PDF copy of the full report by Chainalysis, or read our summary below.

 

Global Cryptocurrency Adoption Summary 2021

We’ve all heard people say, “it’s just a fad” and cast shadows on cryptocurrency,” but the number you’re about to see next shuns all grievances aside. Blockchain data platform, Chainalysis, reported in “The 2021 Geography of Cryptocurrency Report” that global cryptocurrency adoption was up 881% in 2021. Impressive right? It’s essential to recognise where this comes from and which countries take the business and crypto world by surprise as they cash in on this ongoing phenomenon.

global cryptocurrency adoption index

This is the foundation of the content covered in this article; it is important to look at the ranks to follow as we go.

 

Who’s Leading the Way?

The top of the list surprised me, but after researching, it became clear:

country rankings for crypto adoption

Vietnam takes the cake, and yes, we’re all perplexed by it, but the Director of Research, Kim Grauer, had this to say:

“We heard from experts that people in Vietnam have a history of gambling, and the young, tech-savvy people don’t have much to do with their funds in terms of investing in a traditional ETF, both of which drive crypto adoption.”

The explanation is simple but explains so much as to why they are the highest-ranking country on the index. The Vietnamese are known gamblers, which reflects that but as their market emerges into a new light, there’s no hiding the fact that cryptocurrency is a volatile asset, so you can see how they work to the mutual benefit of each other. Risk and Reward is one of the oldest standing traditions that continue to ring true. Even if you may not be a gambler, if you have $5000 to invest, this market has proven itself to be rewarding!

Following are India and Pakistan with 0.37 and 0.36 respectively; you’ll notice that the top 3 all tend to be developing countries, so to see them stomp out the likes of the USA and Ukraine is surprising. From reading the report, the most common answer is that everyone has money, everyone spends money, but if you don’t spend more than you earn, you’re greeted with this small pocket of gold called savings. With savings, you can choose to either spend it now, spend it with next week’s pay or save it. If you save it, you’ll find your pocket of gold grows. As it grows, you essentially invest in yourself and end up with a decent amount of money. But being in a developing country doesn’t present you with many investment opportunities, and the only “markets” are fish markets – not a great investment! This is where cryptocurrency enters a league of its own. That is why you’ll see much faster pace investments from third world countries.

Now obviously, not everyone is buying crypto with every spare cent they have, but with low interest rates and most likely no feasible investment opportunities, it’s the way to go for many people. Due to crypto fulfilling all the characteristics of money and holding its value (can’t be easily stolen, which is important especially in remote parts), it makes it the perfect choice for anyone looking towards the future.

 

What About New Zealand?

country rankings for crypto adoption NZ crypto adoption

As you can see, we currently sit on 96 out of 154, which isn’t bad, but in regards to how the rest of the world seems to actively promote crypto’s usefulness, we’re not convinced. Perhaps as Australia and other close partners become more open to the idea, we may as well. Because New Zealand tends to be a Price-Taker nation (we react to global markets, we don’t impact them greatly), it isn’t surprising to see we have a cautious approach to anything new that hits our shorelines.

 

Interesting Points

Emerging markets have adopted cryptocurrency and streamlined it directly to their countries. These countries tend to rank high on the index in large part because they have substantial transaction volumes on peer-to-peer (P2P) platforms. The interviews conducted with experts in these countries revealed that many residents use P2P crypto exchanges as their primary on-ramp into cryptocurrency, often because they don’t have access to centralised exchanges. This makes sense when you see where they are in the world; however, best not to count them out too quickly, for this could be a vital step in bringing them into the new world.

 

Why Is The US Not Ranked Higher?

The US and China took a dip in this year’s rankings, with China going from 4th to 13th and the US going from 6th to 8th. Why? Partly due to their rankings in P2P trade volume weighted for internet-using population declining dramatically from 2020-2021. This is just because the rest of the world started to catch up on them, but they still take a hit even in regards to world totals. This has been put down to increasing professionalisation and institutionalisation of crypto trading in the United States. China’s case may be related to ongoing government crackdowns on cryptocurrency trading. Two crypto powerhouses slowly being brought back to the global median isn’t necessarily a bad thing and isn’t a cause for worry at all.

 

How Crypto Is Being Adopted Over Time?

crypto adoption over time

Arguably, the most comforting thing you’ll find in this article is the rise of cryptocurrency and what that means heading into 2022.

Chainalysis’s research suggests that the reasons for this increased adoption differ around the world; this makes sense due to every country reacting in its own way. In emerging markets like Vietnam, Pakistan etc., many people have turned to cryptocurrency to preserve their savings in the face of currency devaluation and to tackle other financial walls discussed earlier. In North America, Western Europe, and Eastern Asia, their adoption of crypto has been primarily driven by institutional investment over the last year.

Institutional investment has been tremendous, as businessmen, politicians, and investors turned from accusing crypto users of being fraudulent criminals to eventually siding with them and investing as well. Forbes reported an estimated 17 billion dollars worth of capital in 2021 alone. The market will only grow; crypto has outlived all sceptics and even converted them in most instances.

 

How Will Crypto Be Adopted In The Future?

This is a pretty vital point to consider, especially since in a year from now, I’ll be writing the same article summarising this year (hopefully, it’s a bit nicer to us). Growing transaction volumes in already adopted countries will continue to rise, and it’s my most fervent belief that emerging markets will stake their place in history during 2022, taking crypto to places we haven’t seen before. What we must remember is that the future is not certain. As some governments attempt to disrupt the crypto network, we must implement new ways to combat them.

 

2021 Wrapped

As the sun sets on the rather vicious year we’ve had, depending on circumstances, your feelings may vary. In terms of cryptocurrency, it has been a roller coaster, but we’ve ended high. We’re seeing more high-profile transactions taking place every day; emerging markets in developing countries are disrupting the market and staking their claim on the pot of digital gold. Humans are so inventive in the way they adapt and overcome; we have seen cryptocurrency be used in so many different forms and, in some cases, legal tender and added to balance sheets by high profile companies. China plummeted BTC prices with bands, but the ever-resilient cryptocurrency rose to its former glory six months later and continues to increase.

At BitPrime, we’ve always been open to the future – it’s kind of our thing. Cryptocurrency is surging in all its forms and forcing global markets to confront it – from rags to riches for some, from riches to rags for others. The reality is, as the world dives into cryptocurrency, as Vietnam continues to boom in its surgency of crypto trading, as Ukraine mines more than ever before, we are stepping forward. The best thing about this year in cryptocurrency is that the world is starting to step forward together.

 


About the author:

Austin Watene is a writer who has collaborated with a multitude of different partners in Business, Social Media and News Companies. He produces quality content in which he aims to resonate with viewers, or at least raise their eyebrows to the new opportunities of tomorrow.

Disclaimer:

The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.

Last updated: 21/01/2022

Reading Time: 9 minutes

Cryptocurrency: Why Consider it Now and How to Get Started Safely?

What is Cryptocurrency and How Does it Work?

There is no doubt that by now, you’ve heard the term ‘cryptocurrency’. To deny its existence would be almost impossible; it’s everywhere and anywhere, that’s what makes it so attractive. Join me as we dive into crypto – from Satoshi Nakamoto’s brainchild Bitcoin to how Bitcoin and other crypto is mined and why these digital assets may just set you up for a lifetime or more! Watch how blockchain technology is used and how transactions take place within the realm of the internet while ensuring all security and privacy is met.

This term ‘Cryptocurrency’ – let’s break it down. Crypto is derived from words like cryptogram, cryptography etc. and stands for hidden or concealed. Currency, as we know, is a unit of measure for money, and we all like money, don’t we? I’m sure we’ve all interacted with some cryptography, whether it be bank accounts, toy safes or even piggy banks! So, what are you waiting for? Jokes aside, cryptocurrency is defined as “a collection of binary data designed to work as a medium of exchange”. The main point of cryptocurrency is to take power away from banks and governments and place it in the hands of those owning it. This decentralised model makes for limited to little government intervention; less government, fewer problems, right?

Scytale-Encryption-Explained
Scytale encryption was one of the earlier technologies that led to modern-day cryptography.

Let’s look into this digital currency revolution and see what goes on before and after investing.

 

How do Miners Create Coins and Confirm Transactions?

The primary way people get cryptocurrency without buying it is by mining it; I will elaborate on this term next. Mining, as we know, is the collection of minerals and resources like coal, metals etc., and this transferral of the term towards cryptocurrency resonates similarly. Crypto miners are people running computers to solve complicated equations; bitcoin or other crypto is awarded to the first to solve it for their efforts. Mining is a highly active, competitive sport – a modern-day gold rush with the dream of riches on the line. Who wouldn’t want a piece of that pie? Millions of people are setting up mining ‘rigs’ to increase their chances of success, but how do they do this? Well, with a lot of expensive equipment! The main tools used are ASICS or GPU’s. Prices vary from “starter” packs for NZD 3,999 to NZD 45,9999 for the more well acquainted (and those with more disposable income fit for investment).

So, once you’ve mined your new crypto, you must wonder, how do I verify this transaction? What proof is there that you have completed the job and been paid etc. I’m going to introduce this idea of the blockchain, and here’s how it works:

How-blockchain-works

How Does Cryptocurrency Have Any Monetary Value?

Thanks to Euromoney’s graphic above, we see a simplified version of how transactions enter the blockchain. This blockchain technology is revolutionary in the way we deal with data transactions. So now you know the journey from the first time you request the transaction for your hard work to the time you’re sitting pretty in Hawaii drinking mimosas – if only it were that easy! If you already have ample money for equipment, it is, but getting started in mining is usually extremely tough. So, let’s go back to that holiday; how does this cryptocurrency turn into “real” money? Does it hold “real” value?

The simple answer is yes; here’s why. For something to be considered “money”, it must fit specific criteria: durability, portability, divisibility, uniformity, limited supply (questionable for fiat!), and acceptability. Crypto absolutely fits all of these and breaks through market barriers, government restraints and cross-border restrictions.

When I initially learned about crypto, my professor gave me this table. I think when you’re new to crypto and considering investing in it, it’s vital to understand.

Table showing how gold, fiat and cryptocurrency fulfill traditional traits of currency mand why you should consider cryptocurrency

The table includes three currency types; gold, fiat (NZD, USD etc.) and cryptocurrency. Crypto has more traits of money than fiat! Plus, it’s independent of state control (excluding CBDCs), quickly exchanged and as secure as it’s programmed to be. Can you understand why and how crypto has become the newest investment craze?

How Do Cryptocurrencies Have Value

Choosing Which Cryptocurrency to Buy

If you’ve followed the news lately, you cannot avoid cryptocurrencies, especially the famous ones like Bitcoin and Ethereum. So, you’ve decided to buy crypto – you’re probably going to end up Googling “How do I choose what cryptocurrency to buy?”.

It can be hard now to find the “right” one, especially with how many different cryptos are on the market now. It’s vital to ensure you are investing in one that will (hopefully) yield proper returns for you, both in the short term and long term.

So, we started with Bitcoin – the longest-running cryptocurrency and arguably the most well-known and reliable. It’s almost a free advertisement, isn’t it; existing simply within word of mouth, needing no advertising. How do you actually get any once you have your crypto wallet set up and are ready to dive into digital currency? What things should you consider before investing?

The model I created and use follows this format; Risk, Research and Relevance.

Risk

Risk means don’t invest more money in investments than you can afford to lose! Due to its high volatility, cryptocurrency is considered high-risk, so be well informed before making final decisions.

Research

Know what you’re buying into before biting at the bait! You should know the company/developers before you buy because when investing in something, you’re putting your trust in them.

Relevance

Relevance is the information you are seeking. It’s vital to ensure that you’re reading verified, timely information from which to infer your decisions when browsing the news.

BitPrime Golden Rule

Consider Top Cryptos by Market Cap

So, what are the top cryptocurrencies on the market? Well, the first one may seem clear due to the nature of this article – Bitcoin! Of course, it is; with a current Market Cap of NZD 1,361,468,676,358 (at time of writing), Bitcoin is essentially electronic gold!

The 1848 gold rush led to a considerable decrease in the gold supply due to the environment having a finite amount. This analogy will make sense further; stay with me. Because only limited gold was available, its price shot through the roof! Or, as economists know it, the law of Supply and Demand: as supply decreases, the price goes up, and vice versa (ceteris paribus if you really know your stuff!).

Bitcoin is like a modern-day resurgence of the gold rush. Because there’s a limited supply (21 million), the price of Bitcoin continues to increase, with minor deviations from predictions with external and internal entities.

Following Bitcoin is Ethereum, having a market cap of NZD 699,238,695,762. You can see this is roughly half Bitcoin’s market cap which may seem “small”, but remember, the richest man in the world is only worth USD 278 Billion (sorry, Elon!). So, although figures seem comparatively small, they’re astronomical in scopes of actual money. Ethereum has become increasingly popular due to the recent rise of NFT’s (non-fungible tokens), creating a space for people to sell artwork as unique digital property.

 

Bitcoin vs Altcoins vs Stablecoins and Tracking Performance

An aptly named phrase becoming more mainstream is Altcoins. Basically, any coin that isn’t Bitcoin (makes sense considering the market caps we discussed earlier). Another phrase is Stablecoins, cryptocurrencies whose value is fixed to something tangible, e.g. USD. This works similarly to countries fixing their currency to others to avoid importing/exporting disruptions (the most common fix is to USD). Then there’s Bitcoin – the powerhouse. So, in the grand scheme of things, which is best? Well, put simply, it comes down to your risk management and comfortability within the market.

Investing in any altcoins could yield an explosive return or a dismal failure, which is what makes them attractive in the market (and to your crypto wallet, if profits roll on). However, with Bitcoin, their assets are discovered, meaning if you think you’re in the door quickly, John from next door is already inside. Investors will tend to put more money into Bitcoin and Ethereum than other Altcoins.

Stablecoins appeal to many with the facade of moving money in and out of the market – yet no new crypto has shown spendable characteristics. These crypto assets will continue to expand into the future. The possibility for expansion and adaptation into every market is inevitable.

Now, if I decide to buy Bitcoin, how do I track its performance to ensure I know whether to sell or buy more? Many apps provide some management; Coinstats is a crypto tracker designed to analyse 100+ cryptocurrencies and provide essential market data.

Relevant and timely information is dire concerning your profits; you must be on the top of your game as much as possible! The best research you could do is your own; if it’s already published, it’s already old.

 

How can I Buy, Sell and Trade Crypto Safely?

Out of all the questions, this is undoubtedly the most important. One bitcoin sells for ~NZD 74,000; if you don’t buy, sell or trade safely, you’re in trouble, and so is your $74,000! Firstly, identify where you’re getting your crypto from if you aren’t mining. There are two main places: a retailer/broker or an exchange.

Retailers and brokers offer the most suitable environment for beginner-intermediate users or professionals/institutions short of time – a fiat-crypto or crypto-fiat transaction occurs between the two parties. A broker is essentially the middle man between you and the buyer/seller, whereas you deal directly with a retailer like BitPrime, who have their own crypto supplies.

With exchanges, you’re dealing with all other buyers/sellers listing on the said exchange. Pricing follows current market spot prices with multiple options to set the price you want to enter or exit. Exchanges are definitely for more experienced investors or those who have the time to learn how trading exchanges work!

image of financial charts to illustrate Switching crypto exchanges
Image symbolising various aspects of charts and indicators common to cryptocurrency exchanges.

 

Cryptocurrency Wallets

A crypto wallet may sound self-explanatory, but educating yourself sufficiently is essential. Crypto wallets come in two forms, hot or cold. Both store your cryptographic keys used to unlock your coins stored on the blockchain.

Cold wallets refer to those that are primarily offline until you’re sending crypto from them and include paper or hardware wallets. Hot wallets refer to those that maintain an active internet connection, including software and exchange wallets. Both have pros and cons, and the one you choose depends on your needs. Our beginner’s guide to crypto wallets covers all of this in great detail.

There are many safeguards you can put in place to ensure your crypto doesn’t get stolen! The single most important is ensuring you create a backup and write this down to store in multiple, safe locations. This action can be the difference between a lifetime of riches or regret and searching through landfills.

 

Cryptocurrency Scams

Avoiding scams can be tricky! Scammers keep up with technology and hype, hiding in the darkest corners of society, waiting for you to make one mistake, click one dodgy link, one fake ad, one anything! You must be diligent and self-aware! Only log into accounts on secure networks and not when biting into your next Big Mac or snacking on the Colonel’s best while using public WIFI. Open networks allow for infiltration; even though you’ve been waiting in the drive-through for so long, resist the temptation! Your future self will thank you.

Remember, if something seems too good to be true, it probably is! Don’t believe someone who cold calls you or starts up a random instant messaging chat promising to have the latest, greatest trading platform that guarantees you returns of 150% in two days – it’s utter rubbish! No one can guarantee returns. Not even Satoshi themself could!

Familiarise yourself with the latest scams, learn the signs to be wary of and what to do if you’ve been an unfortunate victim in our detailed Scam Guide.

 

Is Now a Good Time to Consider Cryptocurrency?

As the old saying goes, “the best time to plant a tree was 20 years ago; the next best time is now”. Crypto is evolving rapidly, and you can’t deny its effect on society; it’s not too late to consider cryptocurrency as part of your portfolio diversification. It’s important to remember that crypto assets are your best bet at finding common returns; as an investor, you’re seeing everyone else buy-in and win big. With a bit of due diligence and some thorough research, you’re on your way.

By becoming a crypto investor, you can watch the stock market and cryptocurrency market boom, and for once, you’ll be profiting too! Crypto isn’t a fad, and the market capitalisation reflects that strongly. Still, if you have doubts, it’s essential to seek professional investment advice or talk to someone who has invested. But remember, an intelligent business person doesn’t give away all their secrets!

The only way to forge your crypto dynasty is through your own research, as long and tedious as it may be.

When buying crypto, it’s crucial to look at trends – look at months where they do well and months they don’t. Often, if you can match a historical news story, you can see the market reflect the coverage.

In general, due to the volatile nature of cryptocurrency, it can be hard to know exactly when the best time to buy and sell is. A study conducted by The Motley Fool stated, “looking at data from October and November, the very best time of day to purchase these popular cryptocurrencies generally was in the morning, and the earlier, the better.” However, it is important to note this doesn’t predict future markets!

 

Conclusion

My final thoughts on cryptocurrency are this: we live in a world full of surprises, whether good or bad, we still have to deal with them. Cryptocurrency is tomorrow, and we’re experiencing this euphoria of the future sweeping in on us, and it’s your turn to take its hand.

Only you can decide how much you want to retire with! Jokes aside, some investors track their performance with journals; this can be a vital way to monitor your profit/loss without getting caught up in the dollar amount too much.

Crypto isn’t a fad; it isn’t a scam; it’s a digital asset. We are moving from fiat currency to cryptocurrency, and that’s something to be excited about. It’s definitely not too late to consider cryptocurrency!

Here at BitPrime, we pride ourselves on you, our customers. We’ll always work our hardest to ensure your needs are at the forefront of our decision making, but the rest is up to you! Only you can avoid scammers and protect your wallet! Buy a well-respected hardware wallet as soon as possible, don’t let yourself become one of the tragic stories we hear on TV!

Refer to other blog articles for more information, or reach out to our staff if you have any questions.


About the author:

Austin Watene is a writer who has collaborated with a multitude of different partners in Business, Social Media and News Companies. He produces quality content in which he aims to resonate with viewers, or at least raise their eyebrows to the new opportunities of tomorrow.

Disclaimer:

The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.

 

Last updated: 28/12/2021

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