Long-term cryptocurrency investment: Everything you need to know
Long-term Cryptocurrency Investment is
relatively simple and can be quite profitable. However, it is important to know
about this market before investing in it.
Cryptoactives have been able to radically change one essential technology that is used in all civilized societies: money. As the great investor and founding partner of eBay, Chris Dixon once said:
“Three eras of
currency: Commodity based, politically based, and math based.”
In other words:
cryptocurrencies are a completely virtual
form of money. They are neither issued nor depend on the actions of a
central bank or a government institution. They are only ruled by preprogrammed
algorithms. This, in addition to the anonymity, speed and security they
provide, explains why crypto has been well valued in recent years.
emerged only a decade ago. In the past couple of years, there has been a boom
in the market, which has led to the appearance of thousands of additional
cryptocurrencies. Each of them is powered by a different concept, architecture
Where the industry
stands now is just the beginning. Each coin has its own user community, group
of investors and roadmap. Although there are important upward and downward
trends that are felt across the entire market, each cryptocurrency has its own
long-term valuation and devaluation logic.
What this means is that each coin has its own unique profit opportunities. In this article, the Cripto InterCambio blog will explain why.
can rise or fall depending on the socioeconomic context of a given moment, just
like any stock. These are the external
factors, which influence market highs and lows.
For example, were stricter Cryptocurrency Regulation in China to be announced, it could cause masses of investors to sell their crypto. This, in turn, would cause lower prices. On the other hand, if Xi Jinping makes a positive comment on blockchain technologies, then the market might go up.
In addition, there is a price manipulation phenomenon in this market, which can create sudden movements in a few minutes.
It is important to
note that news and price manipulation tend to influence the market in the short term. The huge swings in Bitcoin
and other cryptocurrencies’ prices are related to this type of phenomenon.
In the medium and
long term, the main factor in price variation is the technological adoption factor.
For example, when
it comes to Bitcoin:
In 2009, the year BTC was launched, a single
coin was worth less than $0.01.
In 2013, the price exceeded $100 per unit.
In 2017, the price skyrocketed from $1,000 to
● Since then, its
value has never returned to such high levels. In 2018, it plunged to the $3,200
mark. Currently, it is above $9,000 per unit.
In other words:
although there have been abrupt and drastic variations, BTC has never again
descended to the level of where it started out, at just a few cents. In fact,
it has remained highly valued, if we consider its initial cost.
Basically, this is
due to the adoption of this technology. Many people store their money in
Bitcoin, and large investors believe that its value will further increase in
the future. Its price has never returned
to its initial level.
Long-term cryptocurrency investment: Important tips
The fact that BTC’s
price has never returned to its initial level is not exclusive to this crypto.
This is the rule for all big cryptocurrencies, those in the top 100 in terms of
All the big names like Ethereum, Dash, XRP, Monero – the so-called altcoins– have never returned to their initial prices.
To put it bluntly: Long-term Cryptocurrency Investment is worth
it if you believe in the adoption of this technology. When big investors
put money in a company they know they are investing in the value that the
company can bring to the market.
are some useful tips when deciding on Long-term Cryptocurrency Investments.
Search about a
One of the most
interesting things in the crypto market is the ease of investment. Unlike stock
exchanges – reserved for large or very rich brokers – with cryptocurrencies any
individual can buy crypto and wait for it to go down or up.
Therefore, it is
essential to do your own research on the subject. In addition to meeting the
project developers, it is essential to understand how any cryptocurrency aims
to provide value in the present and in the future.
cryptocurrencies have to compete not only with other cryptocurrencies but also
with fiat money. Here are some key questions:
Are transactions cheap?
Are transfers fast?
Are transactions anonymous?
Does it drive its own exclusive applications?
● Does it have the
backing of established organizations?
All of this must be taken into account when choosing the ideal currency to invest in.
Losses are part of
investing in any market, including crypto. However, diversifying can reduce the
uncertainty of investing and hedge the risks. After all, losses can be
compensated by exponential gains.
There are a number of good projects in this space that stand to earn value in the long term. It is also possible to alternate investments in consolidated currencies with lower risks, and in others with potential in the coming years.
Cryptocurrencies and long-term gains
Eddy Elfenbein, the owner of one of the biggest Wall Street and investment sites, once said:
and ignore fads. Focus on value. Never panic.”
This is key advice
for those who are looking to invest long term. Your chances of success are
stacked in your favor if the cryptocurrency in which you have invested is a
consistent and innovative project and is constantly updated according to new
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