5 Great Reasons To Buy And Hold Cryptocurrencies Before They Explode

How many times have you heard someone say that they wished they had bought Amazon when it was selling for pennies compared to its price now? Hindsight always allows people to make the best picks, but it’s a little different when you’re looking to the future. People are apprehensive about the future, and they tend to think that certain types of technology, even new trends, are going to fizzle as fads.

Are crypto-currencies here to stay? No one can tell the future. Yet these digital currencies look like a great example of a new type of technology that is here to stay, at least for quite some time. Even buy and hold investors know that they aren’t holding onto stocks for a lifetime. Buffet even buys and sells. Therefore, the fact that these crypto-currencies represent a viable buy and hold opportunity for a time suggests that perhaps it’s time for investors to pay attention.

There are certainly all types of investments to choose from, many of them generating nice returns these days. So why digital currencies? Some of the returns that crypto-currencies have been producing in recent years have been astronomical. You had to have been avoiding the news not to see what happened to BTC or Bitcoin in 2017 and early 2018.

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You could say the same thing about ETH or Ethereum, and a lesser-known digital currency, too, XRP or Ripple. Ripple didn’t balloon to a price that is similar to the value of a Bitcoin, but it went from selling at mere pennies to a few dollars a coin. If you do that math, that’s a huge return.

Naturally, in recent months, the returns for many digital currencies have been going in the other direction. They did balloon quite a lot, and they did it quickly. Not all of them followed suit either. In fact, some crypto-currencies are duds, and that’s why you have to choose your investments wisely.

Yet you’re not looking for the digital currencies you invest in to balloon to an enormous price all at once. You’re looking at the long-term opportunity, like an Amazon play. If you make a move like that, then you could end up with millions of dollars and telling others about how you got involved in crypto-currencies when they were in their infancy.

That statement makes a good point. The reason why most people didn’t invest in a company like Amazon when it was in its infancy is that it wasn’t the company then that it is today. It’s easy to say investing in Amazon is a good idea today, and the share price is astronomical.

The same could possibly be said about digital currencies, though we aren’t there yet. There were certainly many millionaires made when the last digital currency boom happened quickly. Yet what about the long-term? These digital currencies may not look good to every investor, just like Amazon didn’t initially look good to every investor. Yet what about later on down the road?

To Regulate Or Not To Regulate

One of the same principles that draw many people to digital currencies also makes them leery. How is that? The fact that crypto-currencies aren’t regulated by the government or banks is what draws many people to want to invest in them. Yet people also have the tendency to think that one day they will be regulated, and so they are hesitant, all things considered.

The experts say, however, that the regulation of crypto-currencies wouldn’t necessarily mean their demise. It may sound like a grand idea to have currencies that aren’t regulated, but is it really? Would currencies that are popular and subsequently regulated be better than the system that is in place now?

It’s impossible to tell what is going to happen with the digital currency market. Yet you can take a good hard look and see what you think in regards to what investments you want to make. Picking a home run hitter before he becomes a home run hitter isn’t easy. That’s just a baseball analogy to help you figure out why people have such a hard time picking out the next Amazon and why they are hesitant about digital currencies.

Crypto-currencies aren’t hitting home run after home run just yet, but they are in fact showing signs that they might. Three of the digital currencies have really shown those signs, and it’s hard to argue with how popular Bitcoin has become. What else is important to note?

Life Application

With the introduction of so many digital currencies, it makes some people wonder why there are all those choices. After all, each country only has one actual currency. Yet you have to understand the blockchain and the fact that each of these crypto-currencies is supposed to have its own real-world application.

For example, Ripple is tied to the banking system. There are talks of major companies out there starting to accept digital currencies soon enough. That can make you really start to take note of the opportunity that might be in front of you right now. That doesn’t mean, however, that you get giddy about buying all those digital currencies.

You have to understand your investments, and even the most savvy investors can’t always pick home run hitters before they hit home runs. If you were to try and pick the next Amazon back when, would you have picked the company or a different one? Maybe you were an investor then and tried but didn’t see it coming.

It’s one thing to recognize the fact that digital currencies have the opportunity to really blow up in the future. Yet they aren’t all in the same boat. You have to think about which ones are going to do well. It’s not going to be easy to pick the winners. Just because Bitcoin has done it before doesn’t mean it will be the one to do it again. Which of the digital currencies out there right now are set to explode in the coming years as the market moves in that direction?

If you are interested in even more business-related articles and information from us here at Bit Rebels then we have a lot to choose from.

IMAGE: PEXELS