Act fast, learn faster! Cryptocurrency investment will soon become a lot easier
Not everyone jumped at cryptocurrencies the moment the concept burst onto the scene. The fact is, there are early adopters and then there’s that second wave of people stalwartly bringing up the rear.
For many in this second category, the incentive to dabble in crypto has finally become just too strong to ignore. However, knowing you want to take that leap and knowing how to avoid falling flat on your face when you land are two entirely separate things. Fortunately, new ideas and approaches are being developed which make that leap a little less formidable. So why are the non-early adopters finally taking a leap and what is waiting for them when they land?
It’s easy! Until it isn’t
The first lure of cryptocurrency investment is that it seems so easy. In a recent report by blockchain platform “Waves” it was estimated that 77% of investors are likely to increase their exposure to cryptocurrencies in 2018. Most of these new investors will base their investment decisions on superficial data sources: cryptocurrency exchanges, ICO listings or even social media platforms like Facebook. The entry points are easy to find and the top layer of information paints an appealing and accessible picture.
Then reality hits. Before long, it dawns on the budding crypto investor that making good decisions isn’t simple at all, but fraught with factors to consider. Being good at leveraging cryptocurrency requires an understanding of a diverse jumble of overlapping technological and financial concepts. It begins with trying to figure out which currency to buy and only expands in complexity as investors tackle how to buy it and which platform to use. Not to mention how to transition into exchanging across multiple cryptocurrencies or investing in an ICO.
New companies are emerging whose vision is to bridge that knowledge-gap. Take Future1Coin as an example. Their intention is to offer a platform where real-time data is not just made available, but carefully curated by authentic experts in the field. Future1Coin will create a system whereby experts are financially incentivized to uncover high value financial intelligence to guide members’ investment decisions. These innovations will create an enabling environment for good decision-making. They’ll also offer the potential to ease the “analysis paralysis” most new crypto investors face at some point in their journey.
The lack of regulation gives you more control – and more responsibilities
Another clear enticement for moving into cryptocurrency is that it’s just a psychologically appealing concept. There’s a maverick vibe to it. The draw of cryptocurrency isn’t just that it’s a new currency. It’s attached to a much bigger and more grandiose idea that a fintech revolution is going on which “sticks it to the man”. Many novice cryptocurrency investors take that first leap because it’s a way of reclaiming financial control back from governments and big, centralized financial institutions.
The catch is an inevitable outcome of what makes it appealing. A lack of regulation means more risk. On the one hand, investors in this unregulated currency utopia have unprecedented control over their money. On the other hand, investors have unprecedented responsibilities for not being scammed out of their money. To put it bluntly, it’s possible to get badly burnt.
Future1Coin is working to develop solid answers to this problem. First up, they’re building platform which permits investors to use Escrow accounts when backing ICO listings. This introduces a second layer which assures an investor that their funds won’t simply vanish. Future1Coin is also developing a good governance authentication process for ICOs. In this way, they’re working to create an environment which can radically enhance investor confidence.
Buying cryptocurrency can be a solid investment. But it isn’t an investment strategy
Then you have the appealing notion for potential new investors that diversifying into cryptocurrency investment is a solid approach to developing a risk averse personal investment strategy. There’s a compelling thread of analysis which suggests that, unlike the conventional stock market, political unrest and instability is good for cryptocurrency. There’s evidence, for example, that recent unrest in Asia was part of the Bitcoin price surge.
The sting in the tail of this idea, though, is the realization that merely buying into crypto isn’t itself a winning financial strategy. You can make good and bad investments with crypto, just as you can with any other form of financial speculation.
The emerging solution we’re seeing is that cryptocurrency investment strategy marketplaces will emerge. Future1Coin is building a platform where novice traders can rent effective crypto investment strategies from a pool of accredited expert traders. In this way, people who are still developing their understanding will have the opportunity to build a successful and dynamic approach to investment.
Cryptocurrencies are receiving unprecedented levels of attention from new investors. More than 200 ICOs raised in excess of $3billion in 2017 and continued growth is expected. Future1Coin looks set to offer new investors a wealth of tools to lay their money down safely and effectively.