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Is it too late to invest in bitcoin?

by Craig Cobb

Bitcoin, and cryptocurrency as a whole, has made many millionaires over the past few years. Very often the wealth comes with a rags-to-riches type story and even more often this fabulous wealth has been gained by the younger generation – the millennials. So is it to late to join this explosive new market that is turning the world on it’s head and revolutionising the way we transact and do business?

Also read: Bitcoin: you’d be mad to miss this

Many in the know would suggest that this market has only just started to find it’s feet. As an example, it is commonly suggested that the Nasdaq during it’s peak in the .com days of 1999 had a value of $6.6 trillion. Compare that to the entire cryptocurrency market, which is currently at $390 billion, and you can see that if this is to be “the next internet” there is a long way for it to move. If you also consider back in 1999 the internet was certainly available but conducting commerce on it was only just starting and conducting transactions like buying or selling stock was certainly not as freely available as it is today and you can see the potential for this current market to surpass that of the .com internet boom.

What has caught the excitement of many who have taken the time to get an education in the space is just how readily available and easy it is to invest. Once you get past the initial buying of crypto and the fact that you are the one responsible for taking care of your portfolio it is really very easy to manage, store and keep safe. One of the many inviting elements is that you don’t need to have a large amount of money to get started. This opens the door for a new wave of investors, with that comes new money and a range of funding not seen in traditional markets. Again, this will help to fuel growth.

Also read: Warning that Crypto could crash global markets is unfounded

What to look for in a good crypto project

Team: Does the team have relevant experience, a good network that is relevant to the project and credible successful projects under their belt?

Project: Will this new technology make the project faster, easier, cheaper or better in any significant way if it’s on the blockchain or is it just a money grab to fund a business that has no benefit on the blockchain other than to line the pockets of the shareholders? Think along the lines of who will this help, the consumer, the industry or just the team.

Utility token or not: This is a very important element and one that can’t be glossed over due to a flashy website or amazing marketing. What we mean here is does the token have any link to the success of the business. When you are buying tokens, ie. Cryptocurrency, you are not in fact buying equity into the underlying business so therefore you MUST have the success of the business linked to the success of the token and your investment.

Also read: How to use cryptocurrency to diversity your portfolio

There is of course much more to consider if you are looking to invest into this market however these three areas will form a good foundation for you to start doing your own research.

I am not a financial advisor so therefore it is always best to consult with yours before making any decisions.

Remember; education is your biggest investment!

Craig Cobb has 15-plus years experience in traditional markets like stocks, FX, commodities and bonds and is managing director of TraderCobb.com, an online educator for the Cryptocurrency marketplace.