If you don't live in a bubble, you will have probably noticed that for the past few months Bitcoin, and the Cryptocurrencies in general, are increasingly in the news. It must be said that since the beginning of the year, the progress of these electronic currencies has sometimes been incredible. For example, in one year, Bitcoin has progressed by more than 1%, Litecoin by more than 200% and Ethereum by more than 2%.
But these are just a few examples of relatively visible cryptocurrencies. Because regularly, in the wake of the success of Bitcoin, new currencies are created. To date, there are more than 1 cryptocurrencies… If Bitcoin, which I have already spoken several times on this blog, has already had its moments of glory, there are other currencies that are trying to follow in its footsteps.
But if you want to try the adventure of cryptocurrencies, the challenge is becoming more and more complicated in this changing environment with no precise framework! For my part, I tried my hand at trading cryptocurrencies... just to not die an idiot! So I decided in September to invest €60, not one more, in 3 different currencies (3×€20) just to diversify. My goal is not to get rich (or to lose money) but to stay close enough to the subject so as not to be disconnected.
And in this highly speculative field, I think, as a good father, that it is important to focus on diversification. I stopped at 3 different currencies, because the transaction fees are high (count €1.50 on the platform I use). But this diversification is fundamental for two complementary reasons:
- basic principle when managing your money: don't put all your eggs in one basket!
- avoid staying on a mainstream currency. Bitcoin still has a long way to go, but the exponential gains are already over! By betting part of your money on more confidential and more recent currencies, the potential for gain is multiplied (just like the risk of course). But suddenly, by taking bets on less prominent cryptocurrencies it offers possibilities of significant gains (like in the early days of Bitcoin).
In short, at this stage of the development of cryptocurrencies, it is time to take a look at alternative currencies (for example, you can buy dogecoins) while keeping in mind the highly speculative and therefore risky nature of these currencies that are not based on any economic criteria. To learn a little more about the different cryptocurrencies available, you can find a lot of information on specialized sites like Datacoinz.
Finally, to conclude, if you choose to have fun with cryptocurrencies, keep in mind that these currencies are very risky and do not rely on any guarantee organization. In other words, you can lose everything overnight and without any recourse... so, be careful!
