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Over the last two years of slightly less cryptocurrency has exploded. It’s all thanks to Bitcoin, the little engine that could. So many people laughed at it and shrugged it off as a gimmick, but when one Bitcoin was worth $19,783 on the market, suddenly everyone stopped smirking and paid close attention.
Now whenever you read the newspapers, go to economic websites and even video sharing websites, someone’s got the ultimate tip and trick into making huge sums of money in the cryptocurrency game. Take everything you read and hear with a pinch of salt because there’s no holy grail source of information out there to tell you everything.
Cryptocurrency is an incredibly new system to have entered the world so of course there’s going to be sudden interest and investment and then busts that look like it’s the end. Due to it being in its infancy, not a lot of normal average Joes have the slightest idea on how to use cryptocurrency, and even if it’s worth it.
The constant boom and bust
A system that doesn’t really have any infrastructure and just recently arrived on the scene is never going to be truly stable. In fact, this is one of the many reasons why economists believe that cryptocurrency will never take over the world as it has been suggested by some.
How can a monetary system that has no safety structures and utterly relies on the market to balance things out, ever is attractive to the average person? People want stability, so their hard-earned money isn’t worth one-tenth of what it was worth yesterday. Cryptocurrencies are going through constant boom and bust cycles that if they were a rollercoaster, everyone would be throwing up.
There’s no real factor as to why cryptocurrencies can suddenly boom, but one could be when fiat currencies start to slow down or devalue quickly. People want to put their securities in something other than what they’re in right now, so they need a place to put them. Hence the sudden booms we see, followed by the stability of fiat currencies and then selling of cryptocoins to return and thus the cycle continues.
Buy and forget
A lot more people would get involved in cryptocurrencies if they could be seen as a buy and forget action. You never know when you could make a huge profit from cryptocurrency but seeing as the boom and bust cycle is quite regular, if you get the timing right you do stand a very good chance. Buying some litecoins at a low price and simply leaving them in your wallet until you need to a quick cash lump sum makes sense.
Take a look at the best litecoin wallets which are tailor-made for this cryptocurrency. Offline and cold storage wallets are the safest option as you are protected against hackers. If you’ve invested in a business, real estate or product and you just want to wait until the expected profit targets are met until you worry about selling, an offline wallet is the most secure option.
Looking at the cryptocurrency graph of any coin on the market is reminiscent of a yo-yo. The constant up and down can turn people off. But if you have patience, buy and forget until you can sell your coins at a higher price.