Getting Used to Volatility When Investing in Cryptocurrencies

February 8, 2018 by Adrian Thorpe

There are a lot of things that you are going to have to master as someone who wants to or is about to or who is already investing in cryptocurrencies, and one thing that is going to hit you in the face so to speak as soon as you do start buying any selling any cryptocurrency is volatility.

The value of Bitcoin, Ethereum, Ripple or for that matter any cryptocurrency, coin or token you will come across is going to bounce around every minute of the day, and as such the only way that you are ever going to make a profit from investing in cryptocurrencies is by buying low and then selling high.

That is something that is usually down to luck and luck alone rather than good judgement and skill, and as such try and avoid taking advise from any so called experts you may come across on websites such a YouTube.

Whilst there are some excellent commentators on YouTube who do understand and will explain to you in full the risks associated with investing in cryptocurrencies, there are plenty of people to there and on that website that are only trying to get you to sign up and buy into a cryptocurrency through their links and banners so that they get a cut of your invested amount!

Therefore if you want to invest in cryptocurrencies of any type then you need to separate the nonsense from the hard facts and spend hours doing your research!

What Are The Least Volatile Cryptocurrencies?

If there was only a way to invest in a low volatility cryptocurrency that also returned some good payouts due to a sustained increase in their values, then every cryptocurrency trader would be happy.

The point I am trying to make is that there is not one single cryptocurrency that could ever be described having a low risk or low level of volatility.

In several years time perhaps the cryptocurrency environment may or will become much more established and reliable, but until that day arrives, if it ever does, there is always going to be huge fluctuation in regards to the value of all cryptocurrencies.

If you are not prepared to live with and take the risks associated with any cryptocurrencies then you are certainly never going to be cut out to be a good investor in them.

What you should ideally be looking out for however is possibly an ICO but one that is being launched by a company that has a solid pedigree, but being able to do so is going to take a lot of time, effort and research on your behalf.

I have seen way too many get risky types of schemes online that are associated with investing in cryptocurrencies, and if you do not pay special attention to every aspect of any ICO you may be thinking of investing in then all of your invested funds are going to be at risk, so always research any ICO or any type of cryptocurrency investment you are thinking of placing.

Am I Cut Out to Be a Cryptocurrency Investor?

Make no mistake about it, if you do decide to start investing in absolutely any cryptocurrencies you are going to have some sleepless nights! For there is no getting away from the simple fact that the cryptocurrency trading and investing environment is one of the most volatile and risky ones you can ever invest your money in!

Therefore, if you only have a small amount of cash available to invest, then you really should think long and hard as to whether you will be better off placing those funds in a simple savings account, for you do run the very real risk of losing them all when investing in any cryptocurrency.

However, having said that if you do not mind the levels of risks always associated with cryptocurrencies, and you are prepared to lose those funds of even see them massively increase in value with some luck in trading, then you will find trading and investing in any cryptocurrency or digital asset an exciting environment.

If there is any advise I would give to someone who has made up there mind to place a few investments in digital currencies it is to spread your investments around, and never place too high an investment on just one single cryptocurrency, for there is a much higher level of risk associated with doing just that, rather than spreading your funds around.