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Futureproofing: Crypto Madness!



I'll start by assuming you've heard of Bitcoin and perhaps some of the other cryptocurrencies, such as Ether and Litecoin. If not, a quick web search is in order.

If you have been following the prices of cryptos, you'll no doubt be as stunned as the rest of the world by their volatility. 2017 was the year of All Time Highs being met swiftly and regularly, while 2018 to the current date of this writing is considered the "crypto winter". While the current price represents roughly 80% decline from the all time highs reached in December 2017, even this is not the greatest drop the 10 year history of Bitcoin. What lessons do we take from the wild ride that is crypto?

Lesson One: Volatility is an inherent part of the landscape, at least for now. Dizzying highs and gut-wrenching lows are the norm. If you can't handle volatility, avoid crypto like the plague. As always, NEVER invest more than you can afford to lose. In a high volatility environment, such losses can be permanent, with little to no waiting out the storm to recoup losses. Tread lightly. 

Lesson Two: Normalization is in an early stage. Wall Street is now in the game with Bitcoin futures. This is expected to bring stability to Bitcoin pricing, along with naked shorting and manipulation common to other futures markets. This could be a double-edge sword; hedge accordingly.

Lesson Three: It's never too late: Sure, you missed the early stage when Bitcoin was cheap and could be had for pennies each. Does that mean that you missed out entirely? No. Some are calling for Bitcoin to reach $100,000 each, with a few others predicting ten times that amount. Consider a cryptocurrency to invest in, do lots of research, keep an eye on central and private bank news, be prepared to deal with the anxiety of volatility and possibly watch your investment crash and burn as these things sometimes do, think it over, find an entry point you're comfortable with, and jump in. Bitcoin is currently making gains from recent lows and if indeed the potential is much higher, there is profit, perhaps great profit, to be made. And luckily for us of little means, fractional purchasing is the norm, meaning you don't have to buy the whole thing, just whatever amount you're comfortable with.

As ever, this isn't financial advise, and you've been warned of the potential catastrophic losses possible. Do your due diligence. Good luck!

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