Since the market of Cryptocurrency is not a very old one, it is justified that people are quite skeptical about the whole system. Some people have not even heard about Cryptocurrency, while others have only recently heard about it.
Investors who deal in Cryptocurrency might know that it should not be a surprise if they lose a million dollars within the span of a day. The frequently fluctuating market of Cryptocurrency makes it possible for someone to quickly either gain or lose money. This is why it is important that you know the dynamics of the Cryptocurrency market before you invest in it. Here is a list that will tell you about the things you do not yet know about Cryptocurrency, which you should definitely know:
- Using bitcoins is not cheap
Bitcoins, which are a type of Cryptocurrency, became popular because it did not require a lot of transaction fees. If calculated on an average, then the transaction fee used to be even lesser than $0.10. This was true until recently when Cryptocurrency gained a bit of exposure and the fee has hiked since then. From being at $5.00, Cryptocurrency transactions have even seen the cap of $34 in December.
- You can invest for both short and long terms
The chances of making huge profits and losing a lot of money are both higher in the Cryptocurrency market. So, the risks are always present and you have to be able to take those risks. Irrespective of whether you are a short-term investor or a long-term trader, there are high chances in both cases of you making profits.
- You should be aware of the right time to sell
Knowing about when to sell your Cryptocurrency makes a lot of difference in your credits. This is because the losses are much higher than the percentage of the falling of stocks, when it comes to the Cryptocurrency market.
- Bitcoin is not the only Cryptocurrency
Since Bitcoin is the earliest Cryptocurrency and created quite a furor in the market when it was released, people think that Bitcoin is the only kind of Cryptocurrency. However, in a short span of time, a lot of other currencies have made their way successfully into the Cryptocurrency market. As per the records, we can find 1,573 different Cryptocurrencies. And even newer ones are being manufactured simultaneously.
Although, not all of the Cryptocurrencies can be a competition to the powerful Bitcoin, yet there are some really good competitors. For example, currencies like Ethereum and Ripple are competing for the position of being the most popular Crytocurrency.
- Not all of the Bitcoins that were mined have been used
A lot of Bitcoins were mined. The number can be estimated to about a number of 17 million. Out of this whole quantity, only a percentage of 36 have been used. The others have not been used yet and there are higher chances that a lot of them will never be. A lot of discrepancies and mistakes are the reason behind this.
Now that you know about some key information related to Cryptocurrency, we hope that you will know better and be able to invest better.