October 26, 2020 | AtoZ Markets – Bitcoin has been around for over a decade now, and the technology behind it has even founded other cryptocurrencies like Litecoin, Ripple, and Bitcoin SV. However, despite the benefits and promising technology of blockchain payment, many consumers are still on the fence about investing or using them for everyday transactions. That is until COVID-19 hit.
The pandemic threw the world into a frenzy in March 2020 and altered the definition of what normal is for everybody. Lockdowns and strict safety protocols forced many businesses to either shut down or adapt to the evolving needs of consumers. This included moving operations online and delivering to homes instead of having them shop in stores, among others.
The State of Crypto During COVID-19
Thanks to technology, many businesses were able to shift to the digital space to survive. While e-commerce and online payments through mobile phones have long been available to consumers, COVID-19 forced the majority to prefer online shopping over traditionally going to a store.
With everything going contactless, there has been a need for people to go cashless and use digital payments to acquire goods, too, with a sudden interest in cryptocurrency. Add the fact that several people have lost their jobs through retrenchment, and some have seen their investments suffer because of how the health crisis made a negative impact on the economy.
This prompted people to investigate other avenues of investing and earning money, like owning and trading digital currencies.
3 Tips on Investing in Cryptocurrency During COVID-19
If you are one of the people intrigued by the possibilities of digital currencies, then you came to the right spot. Below are some tips you should keep in mind if you want to invest or trade crypto, especially during these times.
1. Observe digital currency trends in the market
Because of the popularity and stability of Bitcoin, it is one of the top virtual currencies that people flocked to in the beginning of the pandemic. While there are certainly benefits to owning Bitcoin, it will help to assess your options and see other players in the field with potential.
The pandemic could influence many people to get into emotional online trading system habits. While not entirely bad, it may lead to a wrong decision during a situation like this. So, studying historical trends is a no-brainer in the beginning, especially if you are new to cryptocurrency.
Check the performance, uses, adoption rate, and all this relevant information that can help you decide if owning a specific altcoin can be worth your investment.
2. Start small before you pour it all
It is exciting to get into a new investment, but be mindful of the risk you will inevitably face—just like with any other kind of investment. Be patient and wait for movement (preferably positive upturns) before you shell out more money. Especially with something like cryptocurrencies, the risk is relatively high because of the volatility of the market. Proceed with caution, too, other than doing research.
3. Look after your money
Much like tech and traditional banking, cryptocurrency is not a stranger to hackers and theft, so be mindful of the measures you must take to secure your account. Keep your altcoins in wallets, and do not be too confident with trading online, as there have been incidents of hacks during exchanges. Knowing this will make you a much more responsible crypto owner, and more successful in your foray.
Crypto is once again as people are diversifying their portfolios and looking for creative solutions to their problems, whether it is for investment or personal transactions. Riding trends like this could spell out an excellent opportunity for you to delve deeper into crypto trading or investing. Just make sure you know your facts before going all in. Good luck!