Why not? You have all the conditions to start investing in cryptocurrencies in 2018. There are over 1500 cryptocurrencies out there, and the figure is expanding as more and more ICO projects are on the list.
To support my argument, think about the following:
- This is it — the cryptocurrency market is here to stay forever… or at least as long as the internet will be there. The crypto space has established and consolidated itself in the financial world. There is a whole global infrastructure around it — crypto exchanges, mining firms, ICO projects, financial instruments from reputable institutions, including from Wall Street, hedge funds, venture capital firms, and more. There are special laws aimed at supporting the development of the crypto/blockchain industry (Malta is a good example). Even if the market is not mature enough, it is evolving and will become as important as the Forex or the commodity market.
- The fact that the market is still at its nascent stage represents a good chance for investors to bet on different crypto projects at their early stage.
- At this moment, July 2018, the cryptocurrency market is far away from its record high. Currently, the total market cap is about $280 billion compared to over $800 billion reached at the beginning of this year. For investors, it means there is much room for growth, so you can still enjoy discount prices.
- If retail investors have been responsible for driving the crypto market all these years, now more and more institutional investors are showing interest in it. It means loads of money will be pumped into the market. Adam White, VP of the largest crypto exchange in the US — Coinbase, revealed that “institutional conversations have become more and more profound.”
- The cryptocurrency market goes mainstream, and it is quite possible that it will get a big slice from the Forex space, I mean the fiat currencies. Some experts estimated that 10 of the Forex would go to crypto in the following years. According to CIA Factbook, the value of all fiat currencies in the world is about $80 trillion, while the daily turnover in the Forex market is about $5 trillion. 10 percent of $80 trillion is about $8 trillion, and we know the crypto market is very far from that level.
- Big companies like IBM, giant banks, supply chain providers, and even Facebook and Amazon are leveraging blockchain — the technology that underpins cryptocurrencies. Some of these firms are directly or indirectly dealing with cryptos. For example, IBM partnered with Stellar last year.
As you can see, there are many reasons to think that investing in cryptos can work even today, especially when the market has demonstrated a long bearish trend — it means discount prices for you.
The market has been in a correction for months, so it’s not too late — it’s the right time to enter the market.
Note that I don’t claim that investors can trade cryptos and become millionaires overnight. I just mean that you and everyone else can start investing in cryptos in 2018 — it’s not a problem with that. It’s like asking — should I start investing in Forex/commodities/real estate in 2018? Why not? Go ahead!
The important thing is how you do it — your trading skills and discipline are more important than the assets and market that you go for.
Now, if you ask which crypto-coins you should invest in, it becomes more difficult. The important thing is to know that most of the coins follow the movements of Bitcoin — so it’s important to have it in your portfolio. And another essential thing is to have a diversified portfolio — don’t invest in one or two cryptos!