There are many different types of investors out there. You may be the type of investor that keeps close track of even the smallest movements in the market and attempts to squeeze out a profit from the ever-changing prices. Or you may be the type of investor that is interested in the long term – the type of people that make investments and hold them for years.
It is important to note that these two types of investors have very different goals, and very different ways of achieving these goals. People who are trying to make a profit from the market’s movements are always looking for something lucrative. They want something that may become the next big thing. They love investments that are risky but have a lot of potential.
The past few months have been some of the best for this type of investor. Cryptocurrencies were doubling in value within the span of a month, and some even faster than that. If you wanted to earn as much profit as possible in the least amount of time, the past few months were probably one of the best opportunities you could ever get.
Now that the rise seems to be slowing down, investing in cryptocurrencies may not be a great idea for short term investors. Long term investors, however, are a completely separate story. See, for long term investors the highly volatile nature of the market was a bad thing, not a good thing. The reason for this is simple – the market was so volatile that no one could even predict where it was moving. Prices would go up for a week then suddenly crash in a few hours. You could not make any intelligent long term investments.
However, things are settled now, and it is absolutely the right time for long term investors to step up and reap the rewards. We have survived the cryptocurrency rush. Many cryptocurrencies rose in price but failed to hold any value. The best thing to happen during these volatile times is that we now have a much better idea of which cryptocurrencies to invest in, and which ones to stay away from.
If you want to invest in cryptocurrencies for the long term and want to create a fair amount of wealth from it, you need to look at cryptocurrencies which can actually be used as cryptocurrency. This is the biggest problem with Bitcoin right now – the transaction fee is so high, and transactions take so long, that it cannot be used as a currency at all. It is a great asset to own right now but until it is updated to work properly it is useless as a currency.
There are many other cryptocurrencies which were made by people who looked at Bitcoin’s faults and made sure their currencies did not have the same design faults. If you want to invest in cryptocurrencies, remember that you won’t be able to generate a profit in a day or two, but invest smart and hold the currencies and your money will grow exponentially.