How Can Millennials Take Advantage of Cryptocurrency?
The Bitcoin craze had hit fever-pitch in late 2017 when the price per Bitcoin went as high as $19,700. This attracted a large number of eyeballs towards cryptocurrencies: and many began to view them as a great investment opportunity. Data from around the world shows that people between the ages of 18-28 were the most interested in investing in cryptocurrencies. Millennials are increasingly getting involved in the crypto-world: the Bitcoin generation has a lot to benefit from this technology. Classic investment options such as stocks and bonds do not really interest the younger generation of investors, who want quicker and bigger returns on their investment. This is what cryptocurrencies offered to them. With the likes of Ripple booming by over 36,000% last year, millennial interest in cryptocurrencies is higher than any other age group Millennials understand that investing in cryptocurrencies is a high-risk investment, yet they are willing to take this leap of faith in search of profits.A number of influential people in the blockchain space such as John McAfee are claiming that the price of cryptocurrencies is likely to hit north of $15,000 to $20,000 in the short run. Some like Thomas Lee have also predicted the price of Bitcoin to surge past $25,000. Some of the most influential people in blockchain tech have also commented that eventually, the price of Bitcoins would surpass $150,000 in the long run, given industrial investments pour in the cryptocurrency ecosystem.In addition to this, another trend that has been noticed in the young, millennial investors is that they have shown a keen interest in investing in Initial Coin Offerings (ICOs). ICOs are similar to what IPOs are to stock markets. A number of influential people in the blockchain space tend to back certain ICOs – giving them more credibility. Based on their backing, a number of millennials invest in these ICOs, expecting a high return in the long run.Given that the millennials make the right kind of investments in cryptocurrencies and hold (or HODL – as they like to call it) it for the right period of time, it can offer really high returns on investments. Millennials are making use of cryptocurrency investments to fund their travel bills – by the time they return from the trip, the price of their investment grows to such an extent that it covers off the cost of the trip: this, however, depends upon the markets. If the markets are bearish they might even end up losing their investments.Savings are very important – and millennials need to understand that they should start early. Cryptocurrency investments tend to have high payoffs from time to time. If they start at this early age and make the right investment decisions, they could end up securing their future – and save enough money to fund through a rough period in their life, or for emergency situations.Travel is a great educator. Millennials and young adults must explore the world to understand other cultures and to get a broader perspective on the world. This develops not only empathy and understanding, but also helps them gain a wider view on things, giving them creative thought and fresher ideas towards life.The returns on cryptocurrency investments can also be made use of to start off small-scale business ventures, maybe even startups. This would help them ensure that they are self-sufficient and do not need external help at least in the initial phase – giving them an early advantage.Millennials who are good at coding and programming can also learn how to make use of smart contracts to create decentralized applications on blockchain platforms.Ethereum Price CanadaAn education in cryptocurrency and blockchain technology is likely to take one a long way in the future. Blockchain technology is already being hailed as ‘Web 3.0’ – a breakthrough innovation which is all set to change the way we see technology to be. If one is prepared for this revolution at an early age, it is likely to take them forward a long way. This is a good opportunity for millennials to educate themselves on.While the opportunities are abundant, there are a number of threats as well, which young investors in particular need to take care of. Considering that millennial investors, who are investing in cryptocurrencies in large number are mostly first-time investors, there are things that they should be aware of before they make an investment:Sometimes, young investors do not look at the market capitalization while they invest in a currency. While the price growth is important, the market cap’s stability also matters a lot. The higher the market cap, the better and more credible the currency is likely to be despite the price per currency.Investors tend to set a strategy but not stick to it if the markets behave differently. One needs to understand that they need to follow a strategy and not fall in for the ‘bear traps’ or the ‘bull traps’ of the markets. Sometimes, markets are manipulated by large-cap investors who would bring up the price of a particular currency only to bring it down later on. Smart investors need to invest soundly.It is critical to set up a stop-loss when one trades- and it is even more important to stick to that stop-loss. If you plan to sell your currency when the price hits a certain low, do not wait for a ‘what if it grows after a little while’ moment – simply cash out if the stop-loss has been breached.The final bit of advice that millennial investors need to take care of is ‘Never invest more than what you can afford to lose’. This is the most critical advice and one must always stick by it – do not mortgage off your property to invest in cryptocurrency! This is not a risk that you should take!
Source from : Coindoo
Sign up to our emailing list and never miss out on
any of our articles!
Most Viewed Stories
Don't miss a single story
Sign up for Global Crypto News Weekly, sent Sunday-Friday. By signing up, you agree to our