Can Buying Crypto Really Help You Get Rich Quick?

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Crypto is building up to be the next great revolution in the worlds of finance and tech. Indeed, the promise of a global currency can potentially streamline a lot of financial procedures and transactions all over the world. These prospects should be reason enough to invest in these coins.

However, the news that circulates these days typically revolve around cryptocurrency adopters becoming millionaires overnight. People worldwide are investing in what they believe to be the currencies of the future, with certain communities placing their bets on their coins of choice. Those who believe in financial privacy, for example, are keeping their XMR Wallet full of Monero as the coin grows in prominence.

While millions around the globe are attempting to catch the highs of the crypto market, this raises the question of whether such wealth is truly viable. With this in mind, the possibility of becoming rich from investing in crypto comes down to these primary considerations:

Making the Right Investment at the Right Time

Finance has not changed much in the past century as evidenced by the slow, archaic systems still utilized by banks. Due to this, tech enthusiasts strongly believe in investing in cryptocurrency as early as possible, before these coins eventually skyrocket in value.

The prospect of huge potential profits lies in the assumption that cryptocurrency will behave similarly to past revolutions in finance and tech. For example, the advent of dot-coms and smartphones had investors scrambling towards Silicon Valley stocks. Today, it’s clear that websites and smart technologies have truly changed the way that we live forever, and the value of stocks tied to these innovations have risen drastically since they were first offered.

However, one cannot necessarily make the same case for cryptocurrencies, as these coins aren’t necessarily products or stocks in the way we understand them today. Instead, they represent what the founders of these coins believe to be the future of finance. That said, these grand visions of what crypto can be don’t necessarily translate into concrete monetary value. Rather, cryptocurrencies should be viewed more as speculative investments, more than anything else.

Researching the Market and the Coins

In some ways, it may be better to view cryptocurrencies in the same way as most other modern assets like the stock market. Of course, there’s a fundamental difference between these two entities. However, some believe that the same approach to investing in stocks can be applied to cryptocurrencies. Should a person decide to pursue crypto investments, they must do heavy research and persistently keep up to date on trends that affect a coin’s market price.

One must also consider how crypto is a much more volatile market than the traditional stock market, even if both do have fluctuating values. The events and factors that influence the price of a stock are more predictable since they are often—though not always—isolated to the industry in which the stock belongs. Innovations in the world of electric cars, for example, would increase the stock price of certain vehicle companies that are known to be working on their own versions of these futuristic vehicles.

In the case of crypto, there really is no simple way to track the plethora of things that can influence the price of a coin. Whether it’s source code improvements, celebrity endorsements, or financial controversies, there’s no telling what may provoke the value of crypto to rise or fall. While it’s still a good idea to research, it’s still a challenge to pinpoint and predict changes in a coin’s value on a day-to-day basis.

Determining What Defines Wealth When Applied to Crypto

If they play their cards right, an investor can catch the high of a particular crypto, consequently making a handsome fortune from their choice of coin. However, the bigger issue posed by skeptics are the practical applications of digital currencies—that is, how and where these digital coins can be realistically spent.

Additionally, investors tend to immediately exchange their coins for fiat currencies before the next big dip in market value. Because of this, vendors in any industry are hesitant to accept crypto transactions until the values of these coins stabilize. For this reason, crypto remains an investment—wealth on paper—rather than a surplus of usable funds.

Accepting That Luck Is a Crucial Factor in One’s Success

There’s a clear difference between a possibility and an inevitability. While it’s true that investing in cryptocurrencies can make an investor rich, there’s no way to guarantee that it will. As a relatively new asset in the realm of finance, cryptocurrency still has a long way to go in terms of finding widespread usage. As such, it’s difficult for anyone to be certain of what the value of their crypto investments will look like in the near and far future.

But what of the people who have been featured on online forums, blogs, and articles because of the wealth they’ve accrued from investing in cryptocurrencies? Do these success stories guarantee other people’s success in crypto?

While smart trading and investment strategies can certainly increase your chances of succeeding in the crypto market, remember that, as with any investment, there’s still an element of luck involved. In short, you must be willing to take on the risks related to digital currencies if you want the chance to earn potentially lucrative returns.

This doesn’t mean that you should blindly place your money in various digital coins and leave it all up to fate. Rather, it’s up to you to mitigate these risks by doing your research and determining how much you’re willing to bet on these virtual currencies. Only then can you make informed decisions that can result in promising—though unguaranteed—returns.

Overall, investing in crypto is worth it if you believe in its potential to change the landscape of finance as we know it. However,  going into it only in the hopes of getting rich easily may not be the best course of action to take. As with other investments, it still requires hard work and resilience, and is certainly not for the faint of heart.

Should you still be interested in trying your hand at crypto investments, most experts recommend placing only 5 percent of your total portfolio into digital coins, whenever possible. In short, it’s best to invest in a cryptocurrency if you believe in their developers’ vision for global finance. In turn, it may be more realistic to treat the potential returns as a bonus rather than a feature.


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