Still new to cryptocurrencies but has your curiosity caught on? The world of crypto is vast and full of terminology and practices that can be a challenge for newcomers to the growing industry of crypto investing.
But while that may be the case, it doesn’t mean it’s impossible to jump in, or succeed in doing so.The extensive research required to invest responsibly and are willing to ask yourself a few key questions, no problem.
This brief guide will walk you through the three key questions you must answer before embarking on your investment adventure.
Are you prepared to risk financial loss?
One of the most important things to know about cryptocurrencies is that they are highly volatile investments. An otherwise promising currency could fall dramatically in a matter of days, losing a large percentage of its previous value. Or an obscure underdog could rise and make investors rich in the blink of an eye.
Of course, as with any investment, you have to spot some patterns and anticipate them. But to do this you have to really know yourself, and that doesn’t guarantee anything.
Before committing money, ask if you are ready for the risk. If so, the number one recommendation is to always do your own research and stay up to date on trends and fluctuations. CryptocurrencyOf course, we recommend only investing an amount that you can afford to lose.
Are you good at remembering passwords?
For newbies, this question may sound like a bad joke, but we promise to be very serious.
Unfortunately, lost passwords are responsible for the financial loss of a surprising number of cryptocurrency investors. A billionaire who sells cryptocurrency is unable to access and cash out his fortune because of a ridiculously small mistake. Turn on the password to your crypto wallet.
For example, it is estimated that around 3.7 million Bitcoins (BTC) could be lost forever because their owners lost their wallet passwords. For many, the ‘stranded’ crypto wallet is simply a lost cause, for one reason: there is no intermediary in the crypto world, such as a bank, to resend or reset passwords.
While this remains a hard truth for most “inaccessible wallets”, some lucky users have seen it in recent years. Hackers successfully compromised and controlled cryptocurrency walletsHowever, they are very few and not always successful.
How environmentally conscious are you?
Given how integrated computers are integrated into our lives, it’s easy to forget the impact they have on the environment.
But no matter how much you want to forget, the amount of power required to run your computer inevitably leads to an increased carbon footprint. Also, cryptocurrency mining requires a huge number of powerful computers and a huge amount of electricity. The case is comparable to what some countries use.
Therefore, it became clear that buying and selling cryptocurrencies is “not very good” for the environment. This is why some big companies have yet to invest in cryptocurrencies. Environmentally conscious investors feel that more needs to be done to make cryptocurrency mining even greener.
Some companies, like Tesla, have even stopped considering paying in Bitcoin, even though Bitcoin owners had previously voiced their support for Bitcoin. I bought bitcoin and have not sold it.)
Despite these concerns, the use of green energy for cryptocurrency mining is increasing as miners turn to renewable resources. Also worth noting is More energy efficient forms of mining available – These cryptocurrencies do not require that much energy to secure the network.
Therefore, one of the key considerations when choosing a cryptocurrency to invest in is the environmental impact.
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