Is it worth investing in cryptocurrency now

Investors need to overcome emotional bias and act rationally during a downtrend to maximize future returns. Use promocode TNM51 at www. Bitcoin has done it again! In spite of a general expectation of a strong start to , the cryptocurrency market is now deep in red compared to its all-time-highs in November.

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Content:

• Investors feel they 'missed the boat' on cryptocurrency
• Bitcoin's in a slump — here's why Warren Buffett has hated it all along
• 15 Cheap And Potential Cryptocurrencies To Invest In 2021
• I've just started investing in cryptocurrency. Here's what I've learned
• What is cryptocurrency, is it worth still investing in and what are the risks involved?
• Here's how much money you'd have if you invested $1,000 in 4 of the top cryptocurrencies this year

WATCH RELATED VIDEO: 5 Top Crypto to Buy NOW in 2022 (Massive Potential!)

Investors feel they 'missed the boat' on cryptocurrency

Online trading apps are drawing in novice investors willing to risk everything on volatile stocks. It started in November , around the time of the US presidential election.

She started reading about cryptocurrencies online, and the more she read, the more ads for trading platforms she was served on her social media feeds. Unlike listed stocks, bitcoin can be traded 24 hours a day.

Flushed with success, she pulled her money out of bitcoin, downloaded the brokerage app Trading , and started investing in other cryptocurrencies and stocks: Ripple, a cryptocurrency and platform; companies that invest in the legal cannabis industry; psilocybin research brands; Beyond Meat, makers of plant-based meat substitutes; BioNTech, a German biotechnology company; businesses developing gene-editing technology and psychedelic medicine; and gold and silver.

She joined an investing group on the ultra-private messenger app Discord. By now, her entire news feed was about cryptocurrencies and stocks. Pretty quickly, everything began to fall apart. First Ripple crashed , then in February Noor got into the GameStop mania too late, and lost even more money. Part of the problem was that Noor is not a natural investor.

The bigger issue was that she had no idea what she was doing. She bought stock depending on internet hype, or how she was feeling on the day. Does she view this as speculation, or investing?

I mean, if I can get some back, maybe I can find a good place to get out. She sounds desperate, at once self-aware and blindingly deluded. She sounds, in other words, like a roulette player on a losing streak. T his is the year ordinary people discovered financial markets. And at the vanguard of this new, online-centred investment community are young people, women and minority groups. A recent Financial Conduct Authority-commissioned report found that women, the unders, and people from a black, Asian and minority ethnic background are driving this DIY movement, investing in high-risk products such as cryptocurrencies, foreign exchange forex trading, and contracts for difference CFD , a type of investing where individuals bet on whether a security will go up or down between the opening and closing trades of the day.

Contracts for difference are banned under US securities law. Noor blundered into CFD trading, as she blundered into everything else. These new investors, the report found, used social media for tips, were overconfident, invested for short-term thrills rather than long-term gain, and often did not understand the hazards. But much of this investing is ill-informed. What blockchain is it built on? What is its use case? Blake started investing in bitcoin and the cryptocurrency ethereum in January.

I put my life savings in. He insists that he knows what he is doing, and picks his investments carefully. W here do these young people go when they want advice on their investments?

Social media , of course. Virtually none of these communities or content creators adheres to FCA guidance around the giving of financial advice. Aged 20, the University of Nottingham student has , followers on TikTok , where he shares videos about entrepreneurship , affiliate marketing and investing.

Banks is always careful to emphasise in his videos that he is not a qualified financial adviser, and urges people to do their research before investing. So lockdown accelerated people starting side-hustles, because they were bored. Plus, crypto has been booming. People are seeing crazy returns. He is scathing about the bad actors that proliferate in this space. Meanwhile, many of the self-styled gurus make their money by selling courses, rather than investing in the market.

The year-old trader from Boston, Massachusetts, declines to give me his real name. However, he does not have any qualifications to give financial advice, having studied marketing at college. It takes a lot of skills. A lthough it may seem counterintuitive, what is driving so many young people to embrace the volatility of the cryptocurrency and stock markets is the same force that makes their lives feel uncontrollable and chaotic.

When your future feels inherently uncertain and unpredictable, with global financial systems rigged against you, and stability, homeownership and the promise of upwards social mobility a gift only earlier generations had within their reach, why not embrace risk? The competition is out there.

Everyone has a degree, so degrees are meaningless. There is another factor underpinning this speculative interest in cryptocurrency markets. We live in a society where monetary recompense has become increasingly disconnected from our labour.

People from black, Asian and minority backgrounds the people most likely to invest in risky financial products on average earn less than their white peers , are less likely to own their homes, and are more likely to get into debt.

Meanwhile, social media has swung the doors open on the lifestyles of the super rich. Although he is critical of some aspects of this get-rich movement, Banks in general approves of it. Fomo is built into the very structure of the investing apps, which provide forums where users can swap stock tips. On eToro, stocks flash green and red like the lights of a Christmas tree, depending on how they are performing, as they would in a physical stock exchange.

This fuels riskier, emotion-driven investment decisions. The gamification of the major investing apps and platforms also drives gambling-like behaviour. Robinhood , one of the most popular trading apps, is currently facing a lawsuit in Massachusetts.

The securities regulator alleges that the platform encourages inexperienced traders to make risky purchases by gamifying the experience, sending customers emoji-filled messages that influence them to buy shares, as well as highlighting trending products in a way that encourages a Fomo mindset. Blake has seen his friends get sucked into day trading, a high-risk form of investing where people try to make money by buying and selling a financial instrument as its price varies multiple times during a day, hoping to make a minuscule profit on each trade.

Tony Marini is a therapist at Castle Craig addiction rehabilitation centre in Peeblesshire, Scotland. Three years ago, the clinic began accepting people with cryptocurrency addictions: since then, Marini has treated about 30 clients, mostly young men, for addiction to cryptocurrency trading in particular.

But you never hear when people start losing money, because of the guilt and the shame. They cannot not have their phones in front of them.

The volatility of cryptocurrencies fuels addictive behaviour in a way that regular stock market trading does not. They start lying. They stop paying household bills. They get feelings of guilt, shame, or resentment. They start blaming other people, or panicking. I think about Noor often in the weeks after we speak. She managed to find her way out of her hole by investing in gold, silver and pharmaceuticals, and cutting out of the cryptocurrency market entirely.

She is sanguine about the white-knuckle experience. The interest rates are super-hidden, and if you keep the notifications on, you are basically their slave. In other words, she has become an investor, not a speculator. But the worst thing I ever did was listen to other people who claimed they cracked it. For every Noor, quitting the goldrush in favour of slower and steadier gains, there are countless young people hoping to cut out of the rat race, dreary job and millstone student debt by getting rich on the stock market.

The roulette wheel spins, the notifications ping, the clock ticks past amateur hour, and the retail investors rush in. Reuse this content.

Bitcoin's in a slump — here's why Warren Buffett has hated it all along

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15 Cheap And Potential Cryptocurrencies To Invest In 2021

The cryptocurrency industry is growing at a rapid pace with Bitcoin, Dogecoin, Ethereum being the hot buzzwords driving the crypto frenzy these days. Even though the crypto industry is only a decade old, novice investors are drawn to it as they see a quick way to earn profits. Unlike the stock market, the crypto market does not have any regulation, as a result of which, its value swings up and backs down every day. Cryptocurrencies are digital assets— that you can use as investments and even for online purchases. It is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. And unlike the Indian Rupee, there is no central authority that maintains the value of a cryptocurrency. Further, each coin of cryptocurrency consists of a unique line of program or code. Cryptocurrencies are not backed by a central authority such as a government. Instead, they run across a chain of computers. It is exchanged from peer-to-peer on the web without a middleman.

I've just started investing in cryptocurrency. Here's what I've learned

One of the top questions people usually ask is whether or not Cryptocurrency is indeed a good investment. The answer to this question is quite tricky because it could be a good investment, or it could not. Cryptocurrency can either get you filthy rich or you could also end up losing your money. Just like any other investment, crypto assets come with lots of risks, but also plenty of potential rewards. However, without a doubt, Cryptocurrency is a great investment, especially if you want to acquire direct exposure to the demand for digital currency.

What is cryptocurrency, is it worth still investing in and what are the risks involved?

These scam coins are getting crazy. Times Internet Limited. All rights reserved. For reprint rights. Times Syndication Service. Madana Prathap.

Here's how much money you'd have if you invested $1,000 in 4 of the top cryptocurrencies this year

Even as there is no complete legal backing for cryptocurrencies, including Bitcoin, in India, they are gaining popularity in the country. Through a circular in , the RBI had advised all the entities regulated by it not to deal with virtual currencies or provide services for facilitating any person or entity in dealing with settling them. Since then, cryptocurrency has been one of the most talked-about investment options. But there are fears that the government may legally ban the virtual currencies being traded right now. Officially, the government does not consider cryptocurrencies as legal tender. The Finance Minister, however, said that the Government would explore the use of blockchain technology proactively for ushering in a digital economy.

CBS Detroit — Dogecoin started as a joke, but it is real money now. At least the meme cryptocurrency is worth real money. Exactly how much real money varies from day to day, or even hour to hour. Trading most days is fairly volatile.

Decided Ethereum is a good investment? You can get ETH on Gemini today! Our team is diligently working to keep up with trends in the crypto markets. Keep up to date on the latest news and up-and-coming coins. Arguably, Ethereum is equally capable as a store of value.

Or maybe the next best cryptocurrency to buy for the future? Or just lost in a world of money pirates, hype trains and weirdly profitable dogs? Allow us to cut through the bullshit and bring you the latest the best crypto to buy right now. First though: context. Millions unemployed, recessions, constant changing of inflation rates and, for those who wanted to add a four-legged furry companion to their family, the prices for designer dogs and some meme coins have hit drastic new heights, all while a new virus gallivants the globe. As stimulus cheques and boredom set in though, much of the world started investing in This has continued into and looks set to continue in

Investors nervous about the stock market might be looking for alternative investments like Bitcoin. Learn about investing in Bitcoin over stocks in a way that may help you decide whether adding the cryptocurrency to your portfolio is the right move for your situation. Investments carry risk. The market could crash for various reasons.