Back in 2017 there were some very smart people who invested in a number of cryptocurrency coins, who ended up making a serious amount of money. There were also some who held on for too long, and when prices plummeted in 2018, they lost a lot of money too. At the end of last year however, experts like Robert Testagrossa were predicting that crypto would start its resurgence and they were absolutely right.
These days you can’t go anywhere without hearing about the benefits of cryptocurrencies like Bitcoin, but why is it that so many people are starting to invest their money in something that was once considered to be plastic money? Let’s take a look.
Fear of Missing Out
The largest group of those who are investing are the FOMO group, those who have watched the prices of Bitcoin and Ethereum go through the roof, and who want a slice of the action. Now in many cases these people are simply jumping onto the trend. There is however a large portion of this group who are jumping onto the trend with a large amount of knowledge of crypto and in particular alt coins.
Those Who Are Convinced
One of the most encouraging signs for crypto is that so many of the naysayers from previous years are no recognizing that this is a market which is very much here to stay. In fact we only have to look at the number of large corporations and financial institutions who are now backing the likes of crypto, buying up Bitcoin and even allowing their customers to store their crypto with them. This sway in confidence and this renewed hope for crypto is also giving big investors the impetus to spend some of their own money on the digital currency.
Those Taking a Risk
The group who must be careful with what they are doing are those who are taking a risk on things that they have not properly researched or understood about the crypto world. The perfect example of this can be found in Doge coin, a coin which was literally created as a joke, and which is based on the meme of a dog. Thanks to the likes of Reddit and Twitter, many people have jumped on this and are looking to drive the price up. Many who think that they are making money however, will be shocked when that price dumps as fast as it pumped. These are the people who are taking big risks with their cash and simply jumping onto a trend.
If you are interested in buying crypto then this is a good idea, just be sure that you have properly researched any coin which you are going to buy, and that you have the financial security to do so. Assuming you have done all of this, and that you are one of these first two categories, you could do very well from this kind of investment.