Everybody is talking about it , people are making money from it, everywhere you go people are telling you to invest, so does that mean you should jump head first right into the world of cryptocurrency.

Here are 5 points you need to realise and think about before you put any of your hard earned money to cryptocurrency

1) The markets are highly volatile

Yes people are getting rich from crypto and yes there is the ability to 10x if not more your initial investment (if you know what you are doing). This is due to its volatility and massive up swings but cryptocurrency just like any other market is not a constant line up as many believe that volatility can go against you and just as you can make these gains you can also make just as big losses.

Right now the market is a sea of red with bitcoin falling over 50% and all over alt coins following its lead.

If you had invested in early December when the markets were at a high and everyone was jumping you could very well be looking at around a 70% loss on your investment as we speak.

2) Bitcoin and other alt coins were not meant to be a form of investment

Bitcoin was created as an alternative to fiat money/currency, it is the first decentralised currency.

One of the biggest problems at the moment is it is being used as a form of investment or a way to make money and it is not being used in the way as intended.

This can cause an inflated price, people are thinking of bitcoin and relating it to a fiat monetary value, which to me goes against the core purpose of bitcoin and some people are entering the market not even knowing what bitcoin is, was meant to be or does.

Because of this there coins/tokens and utility’s being released onto the markets to feed these individuals, scam coins and investment platforms there are only there themselves to take your money and the get out before you even know what has happened

If you are thinking of bitcoin and cryptocurrency as a quick buck or a way to make fiat money and nothing else then you are entering for all the wrong reasons and this in our opinion is the quickest way to get burnt

3) Bitcoin and other alt coins are businesses or technologies and serve a purpose, or at least should do!

Each cryptocurrency is a business or serves a purpose or is there as an alternative to current failed systems.

They are technologies and ideas with the backing of teams of great people some of which could revolutionise and change the way things operate.

If you want to invest in cryptocurrency you need to ask yourself which ones are you going to invest in and why?

Why would you invest in anything? Because you believe in it and believe it has the potential to do great things and to go places.

Before investing in bitcoin or any altcoin you need to do your homework.

You need to study it to find out what it is all about and if you believe in it enough to put your hard earned fiat currency into it.

If this seems like to much work or is not why you want to get into cryptocurrency then you are probably entering for all the wrong reasons.

4) Investing in cryptocurrency is confusing and expensive

We and many others try to make it easy to understand and digest because this whole market space is confusing. The technologies them self’s can be confusing at first and some people just cant get their heads around it because it is different to anything that exists currently.

Just to enter the market you need to invest money (in which ever currency you use) into an exchange. From there exchange it for bitcoin at the market price. If you want to hold it as bitcoin you need to then transfer it to a wallet of which their are many types. If you want to exchange to other altcoins you then need to transfer your bitcoin to different exchanges that deal in the required currency or currencies. Then try to get it at the best price.

When you have your currency this then needs to be stored in an appropriate wallet that holds that currency.

Worst of all at all of these steps you are getting hit for fees which can be quite high and over the full transaction are chipping away at your investment

5) It is a decentralised market there is no one to complain to!

The whole system is not only confusing at first but it dosnt work the way you need or want it to and if something goes wrong you have no come back

Ok so what do we mean?

If you are intending or trying to be a trader as in you want to buy a selection of cryptocurrency and get in when the price is low and sell when the price is high at the peak times for these activities exchanges have been know to stop working, buy orders and sell orders go down, certain currency transfers are stopped or the chain is so congested that transaction times can take days or even weeks and the currency price is fluctuating while your investment is in limbo.

It has even been know that transactions can disappear you could type a digit wrong and send someone else your transfer by mistake or wallets or exchanges can even be hacked or stop trading

Due to the fact that this is a decentralised market and you are in control of your money/cryptocurrency (which is the whole point) there is no one to complain to, transactions for the most part cant be reversed and as these markets are not regulated there is no watch body looking over it.

Even at times when the exchanges are at fault trying to communicate with them or even have your say can be non-exsistant and extremely frustrating.

Here at coin crypto coin we are believe in bitcoin and other certain altcoins, and can see a better future using these technologies.

Nothing in this blog is written to put you of just to make you stop and think to make a better and more form decision if cryptocurrency is right for you before you dive in!