Is it still worth to invest in Cryptocurrencies late 2017? Let’s quickly run through a couple of questions I get asked the most.
Cryptocurrencies are all the rage now, you can hear people talking about Bitcoin at lunch, in the metro, even at school.
With all the crypto-boom going on right now and Bitcoin moving post the 17.000 mark, I get asked a lot of it is still profitable to invest in cryptocurrencies now or if they are “too late to the game”.
Let’s run through the top questions I get asked all the time.
Disclaimer: I’m not giving investment advise. Do your own research. I’m also not responsible for any lost money on your side. Be aware that investing in Crypto is a highly volatile game and that you are probably going to lose money along the road. Only invest money you are willing to lose.
1. Is it still worth buying Bitcoin now that the price is that high?
Short answer: Yes, eventually.
I wondered that myself back in September when the price of 1 Bitcoin was at around 2300$. I thought, Nah, too high, not worth anymore. Well, as of writing 1 Bitcoin is worth 17,136.05 $. It would have been a worthwhile investment.
You might ask yourself the same question right now. There is no sure answer to what is going to happen. Experts expect 40.000$ in 2018. Others even say 100.000$.
It might as well all go to hell and die. Unlikely, but possible.
The easiest way to get you started is to create a Coinbase account.
Follow my previous guide on how to get started the easy way.
That being said, Bitcoin might be still worthwhile, although the technology is outdated and slow. There are far more advanced currencies out there, Bitcoin wins because it was the first. This will eventually change in the future (I hope).
2. What are altcoins?
Altcoins are essentially every other coin than Bitcoin.
Bitcoin was the first one. You probably already heard of Ethereum and Litecoin in recent news. Those are altcoins.
Well, there are hundreds of altcoins out there and here is where it gets a bit confusing.
There are a lot of scams out there in the Crypto-World. Also, if you think Bitcoin is volatile, wait until you wet your feet in the altcoin game. You can see spikes and dips of 150% and more within just one day.
It’s not for the faint-hearted. The most important thing is, if you decide to invest in altcoins, do your research.
Choose established coins with a promising product in the coming. Also, be very aware of that you might lose all your money.
Investing in Cryptocurrencies is a highly volatile endeavor.
3. Is mining still worth it?
No. Mining is not worth it anymore by any means for a private person, except you plan on investing a couple of 10k’s in mining hardware and have very low power costs.
Mining with your home computer will most likely cause you losing money instead of earning due to high power prices. The days of mining with your gaming rig are over.
There are “Mining-Clouds” now that you can participate in, that is people renting cloud hardware, for example on Amazon AWS and sharing the cost and profit. Although I doubt that this is anywhere near profitable for most.
You can do something useful if you want to and earn a very little amount of money on the side while doing, for example, cancer research. The coin for this is called Gridcoin (GRC) and partners with the long-established BOINC network. So you can let them use your computing power to do research and earn a little money on the side.
But then again, there will be no profits for you that are worth mentioning. Mining is simply not worth it anymore.
4. How do I store my investment safely?
This is a whole topic by itself. Cryptocurrencies are stored in so-called wallets. A wallet can be a completely offline device or it can be online or even hybrid.
Each currency has its own wallet. So I can’t talk about each currency and recommend how to store it, but we can generalize it a bit.
There is also the possibility to leave your investment on the Exchange (Coinbase, Bittrex, Binance…) But this is generally not recommended for larger sums, as you probably heard of Exchanges getting hacked before, although I consider Coinbase and Bittrex a pretty safe, that is if you enable 2 factor authentication with your mobile phone (ALWAYS do this!).
If your investment is larger than 1 week’s worth of salary, you should invest in a hardware wallet like the Ledger Nano S. This is a very safe way to store your crypto offline and I highly recommend it. It’s easy to use and reliable.
If you need to store Ethereum or any EC2 token, Myetherwallet is the way to go.
Always make sure you have multiple backups if you use USB Sticks to store your wallets on! Best is have 3 and store them in different physical locations.
5. So, where should I invest in?
This is entirely up to you. As I said, I don’t give investment advise, you have to do your own research and believe in the product yourself.
As of writing this article in December 2017, there are a couple of coins that are worth looking at, again, this is not a recommendation, just a guideline and starting point:
No particular order
- Bitcoin Cash
- OmiseGO (OMG)
- Ripple (XRP)
- XMR (Monero)
- Litecoin (LTC)
- Request Network (REQ)
- VeChain (VEN)
- VertCoin (VTC)
Many people recommend still investing your majority in Bitcoin and Ethereum, as they probably are here to stay.
6. Wrapping up
I can’t stress this enough, only invest money you are willing to lose. Be careful, do your research and you might get lucky.
The time is definitely not over or you are too late. I, and many others are expecting the year 2018 to be the year of Cryptocurrencies.
Many promising companies are releasing a product in 2018. Bitcoin itself will be around, but it will be traded as a Digital Gold instead of being a real valuable payment method, there are far better and more advanced technologies out there that will revolutionize the way we use money in the future.
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