Despite the recent drop in the price of cryptocurrencies to start 2018, there is a fairly wide consensus that cryptocurrency fever isn’t going to end anytime soon. Even reputable, mainstream news sources like CNBC suggest that there is a good possibility that Bitcoin, the most popular of the cryptocurrencies could rise to over $60,000 dollars this year.
Though the popularization of the cryptocurrency market has certainly led to short-term market volatility and rapid price fluctuations, the idea behind cryptocurrencies is appealing to a large number of people. The revolutionary technology of blockchain is also set to become more mainstream as more and more users are being discovered for this unalterable and peer-to-peer verification system. As blockchain technology continues to work its way into other areas of our lives, the normalization of cryptocurrencies as a commonly used currency should also occur.
If you have been looking into investing in cryptocurrencies, you could simply download a wallet, buy a couple hundred dollars of your favorite sounding cryptocurrencies on the market, and then completely forget about it for a couple of years, hoping that it rises astronomically in value as has Bitcoin and some of the other more popular cryptocurrencies. However, there are other, more traditional possibilities for investing smartly and responsibly in the cryptocurrency market.
An IRA is largely considered to be one of the best tools to save up funds for later in life. While traditional IRAs were focused on stocks and mutual funds, recently a larger array of assets have been included in IRA plans including real estate, gold, and even cryptocurrencies. The IRS believes that any type of virtual currency is considered the property for tax purposes, and thus makes it possible to include cryptocurrency IRS approved retirement accounts.
Bitcoin, Litecoin, Ripple, and Ethereum are few of the cryptocurrencies that are used by certain companies to set up cryptocurrency IRA accounts.
Short to Medium Term Investment
If you aren’t convinced that cryptocurrencies are going to be a long-term currency solution, but still feel that there is time to cash in on the current public interest in cryptocurrencies, consider making a short to medium term investment in cryptocurrencies. Because there is so much movement in the cryptocurrency world, it can be hard to predict where the market is going. However, there is a lot of information on the web related to which cryptocurrencies are gaining in popularity.
If, as some experts predict, Bitcoin could raise to $60,000 dollars this year, you would be hard-pressed to find a better one-year investment plan. However, it is always smart to never invest more than what you are prepared to lose.
Find the Next Bitcoin
With the success of certain cryptocurrencies such as Bitcoin and Ethereum, hundreds of other, smaller cryptocurrencies have been created literally overnight. While several of these currencies will most likely die out (and have their value reduced to zero), it is always possible that one small (and currently cheap) cryptocurrency could potentially explode in value like Bitcoin.
Read up on some of the newer cryptocurrencies on the market. What makes them different and potentially valuable to the everyday consumer/investor? With a little bit of luck, you might be able to find a cryptocurrency that currently costs pennies on the dollar that explodes in value as has Bitcoin.