Bitcoin might just be the closest thing to digital gold that we have come across. But is the boom over? Has the bottom started to fall out of this lucrative commodity? If you listen to the naysayers, you think that the massive drop last year was the beginning of the end.
But was it really? Or was it just a normal adjustment of a commodity price that had been overinflated due to the hype? Let’s face it, when Bitcoin’s value increased by 123% in the latter half of 2017, it caused a stampede of investors – much like a good old-fashioned gold rush.
And, of course, just like with a gold rush, there were people looking to make quick money. Naturally, at the first sign of trouble, they bolted.
But those in the know hung on to their Bitcoin. Besides which, investing in the crypto is not for the faint of heart. You need to be willing to indulge in a bit of Bitcoin gambling and have a little bit of an adventurous streak to be successful at it.
The payoffs, as you will see in the infographic below, can be huge. But, like with every high reward investment, there is also a fair deal of risk.
So, how do you protect yourself against fluctuations in the market? The only sure way to do so is to diversify your portfolio. So, do not put everything into just crypto. And diversify within your crypto portfolio itself as well.
Look at other promising cryptos, especially those where there is still a good deal of room for growth to maximize your potential returns. You will end up making a few bad picks, naturally, but if you are careful in the choices that you make, you will make more good than bad ones.
Written & Infographic by: Josh Wardini