How to Invest in Cryptocurrencies?

Dear Reader,

Bitcoin and other cryptocurrencies have taken over the world by storm in the last 5 years.

Many people who have never invested are now regular investors in Bitcoin and other cryptocurrencies.

Basically, to invest in cryptocurrency one has to open an account in a brokerage company like Coinbase or Robinhood Financial. Via the brokerage company's interface one can buy and sell cryptocurrencies and thus invest in Bitcoin and other cryptocurrencies.

Actually, buying and selling cryptocurrency is not difficult at all. Much more difficult is to do it profitably. More so after the wild swings in the price of Bitcoin during the previous week.

When investing in cryptocurrencies risk management is vital. For the last rolling year before last week it was easy, just buy Bitcoin and the price went up almost intermittently. In the last 2 years, however, and in the previous week especially there have been very large falls in the price of Bitcoin. If one buys at the recent peak, does not hold one's nerve and sells at the bottom one can end up loosing 30 % or even more of one's investment.

One of the main principles of economics is that there is no free lunch. Investing in cryptocurrency is a case in point. One has to take significant risk in order to expect high rewards. Even if news on cryptocurrencies are closely followed this does not guarantee that significant losses will not be incurred.

In my opinion, however, Bitcoin and other cryptocurrencies provide too much benefits and the price of Bitcoin and most other major currencies and even more obscure crypto tokens will continue rising in the next 5-7 years, barring a shocking decision by governments to outlaw cryptocurrencies or any similar Black Swan event pertaining to cryptocurrencies.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich