With the rapid rise in cryptocurrency prices, investors are scrambling to find new avenues for capitalizing on this blockchain market カヴァン・ チョクシ. In a span of only 12 months between 2016-2017, the total cryptocurrency market cap rose from around US$17 Billion to over US$500 Billion. Unfortunately, the dynamic increase in value has created real problems in storing your cryptocurrency holdings.
You aren’t alone if you’re feeling the pinch. Blockchain technology is still very much in its infancy, and there are still notable gaps that need to be filled before cryptocurrencies can reach their full potential. We are here to help! Today, we’ll focus on some of the key things you should know before investing in cryptos.
Cryptocurrencies are here to stay, but they are still volatile
Since cryptocurrencies are still in their early development phase, it’s impossible to predict how the market will trend in the future. While it has been a huge gain for investors so far–especially those who got on board early–it should be noted that any person you ask will not guarantee that cryptocurrencies are the future.
Of course, cryptocurrency skeptics could be likened to internet critics during the infancy of the web. The internet has become integral to modern life–connecting people, businesses, and even entire economies. Like any other new technology introduced into the mainstream market, it takes time for investors to adjust their way of thinking.
It’s also worth noting that cryptocurrencies are subject to volatility just like any other market. Moreover, the market is still very young, and it could be some time before the currencies stabilize themselves–if they ever do at all.
You need multiple wallets to store your cryptocurrency holdings.
As mentioned earlier, the main problem with cryptocurrencies is that there are few reliable options when it comes to storing your holdings. Unlike banks and other traditional financial institutions, most cryptocurrency wallets do not support multiple currencies. Instead of a universal wallet that can store a variety of cryptos, many wallets only allow you to store one currency at a time.
In the meantime, several wallets out there do support multiple currencies. Still, it’s worth noting that many of these wallets lack the security and convenience that you would expect from a wallet. Therefore, hardware or paper wallets are still your best bet if you’re looking for a secure way to store your cryptocurrency holdings.
It helps to be up to date with the latest developments.
Working hand in hand with the volatility of cryptocurrencies, some technical challenges need to be sorted out before they can become viable alternatives for fiat currencies. There is currently an ongoing effort to address these issues. For instance, one of their main goals is to make it easier for investors to cash in and cash out.
Compliance is another major issue affecting investors and entrepreneurs who want to integrate cryptocurrencies into their business models. We all remember when most exchanges suspended cryptocurrency withdrawals due to issues with processing payments. Things have improved since then, but there’s still a long road ahead of us before saying that the market is ready to go mainstream.
You don’t have to be a blockchain expert to stay up to date with the latest developments, but it does help if you are familiar with the language. For instance, reading articles or watching videos about scaling solutions can keep you up to speed without having to spend too much of your time doing so.