Looking at the price of Bitcoin and realizing that it has exploded in value over a very short period of time, one is left with regret that there was an opportunity that you missed out on. But the fact of the matter is, no one is aware of the future and there is no way for most people to tell that there will be such an increase in the value of Bitcoin. Considering the fact that the cryptocurrency basically started with Bitcoin, your inability to buy Bitcoin might lead you to think that you are too late in the game now and there is no point in trying your luck with crypto.
It is true that crypto started with Bitcoin but it does not end there. We can see a consistent growth in this market and more and more coins are being launched in the crypto world. So yes, you may have been a little late to avail the high gains of Bitcoin but you are most certainly not late to enter the best UAE crypto exchange market and establish an additional stream of income.
What Exactly Is Crypto?
It would be helpful to go back to the basics before jumping onto anything further. Cryptocurrency is basically a digital form of currency and operates similar to conventional currency, which means that it can be used for carrying out financial transactions. The difference here is that crypto is based on the blockchain technology and therefore there is no centralized system that is regulating it. The currency exists on a public ledger and is hence a decentralized system.
Due to this drastic change in its nature, there is naturally some resistance towards its adoption especially by governments and regulatory bodies. But the primary reason behind this resistance is the lack of understanding, which is something that can only be fixed over time. This should not mean that crypto is in any kind of imminent danger because millions of people and corporations have invested trillions of dollars into this and there is no chance that it is going anywhere soon.
What Can Crypto Do For Me?
There are primarily two things that you can do with crypto – buy it as an asset for a long-term investment or buy some on an exchange to trade with it and make profitable trades, as a source of income. These two are drastically different with different inputs and outcomes.
If you want to hold, your input would be the amount of research you do into a project that you are interested in. Hopefully you will try to find something that you know has potential. Once you have that sorted, you should always aim to purchase this crypto at an early stage of their launch so that you can take advantage of the increased price over a period of time.
If, on the other hand, you want to trade your crypto, you will have to put more focus on understanding the market and how the price action works. You do need to be too concerned with the basis behind a particular project but knowing that will be helpful. What you need is to buy various coins when the market is in dip and sell them as soon as you see some profits.
What Should One Be Cautious About?
The potential offered by crypto is due to its volatile and unregulated nature. This can also be the cause for losses if you are not careful. Your primary concern should be to keep yourself aware of the various factors that feed into this volatility but more so keep an eye open when you are trading. It is difficult to cover all areas of focus required to predict how the market will move so staying active will ensure that any unforeseen movements are tracked and the appropriate response is provided right there and then. You do not want to sleep on a volatile trade and wake up to have suffered substantial losses.
As you can tell, there is a lot that crypto still has to offer. The market fluctuations and the resistance in its adoption are what make it unstable but this very nature is why it has so much potential. All you need to focus on is how to use this potential to your advantage and how to avoid the factors that may result in losses. Do this and you will surely be able to use crypto to your advantage and take a step towards financial independence. It truly is not too late to do so.
