3 questions to ask yourself before buying cryptocurrencies

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You are not yet familiar with cryptocurrency but curiosity is finally taking you? The world of cryptocurrencies and investing is vast and full of terms and practices that could prove to be a challenge for any newbie in this growing industry. As difficult as it may be, it doesn’t mean it’s impossible to dive into it. or have satisfactory results. If you’re willing to do the thorough research necessary to invest responsibly and ask yourself a few important questions, you’ll be fine. This short guide provides three key questions you should answer before embarking on your investment venture. investment. Are you willing to risk financial losses? One of the most important things to know about cryptocurrencies is that they are an extremely volatile investment. In a matter of days, an otherwise promising currency can drop dramatically and lose huge percentages of its former value, or a small and considered “useless” token can rise and make investors rich in the blink of an eye. Of course, as with any other investment, there are some patterns to spot and predict, but you need to have a deep understanding of things to be able to do so, and even then, nothing is guaranteed. In the end, you never know what’s going to happen in the cryptocurrency market. Ask yourself if you’re ready to take a chance before committing your money. If you are, then one of the best recommendations is to always do your research and stay up to date on trends and fluctuations in cryptocurrencies . Of course, it is advisable to only invest in amounts that you can afford to lose. How good are you at remembering passwords? For those unfamiliar with This question may seem like a bad joke, but we promise we are very serious. Unfortunately, lost passwords are the cause of an alarming number of financial losses for cryptocurrency investors. There are people who could be millionaires if they were to sell their cryptocurrencies, but who simply aren’t able to log in and cash out their fortune due to a ridiculous mistake: they’ve lost any piece of paper, Word document, print or note they had on. saved their crypto wallet password. For example, it is estimated that nearly 3.7 million Bitcoins (BTC) could be lost forever because owners have lost their wallet passwords. A “locked” crypto wallet is for many simply a lost cause as the crypto world does not have an intermediary such as a bank that could resend your password or even reset it for you. While this remains the hard truth for most “inaccessible wallets”, in recent years some lucky users have seen hackers successfully enter and gain control on their wallets. But these cases are rare and don’t always work, so it’s much safer to be the only one who knows your login details. How environmentally conscious are you? With the way computers have become integrated into our lives, it’s easy to forget the impact they have on the environment. No matter how much we want to forget it, the amount of The energy needed to run a computer will inevitably lead to higher CO2 emissions, and cryptocurrency mining requires a huge number of powerful computers and large amounts of electricity that in some cases is comparable to what some nations use. Therefore, buying and selling cryptocurrencies is “not so good” for the environment, which is why some large companies still don’t want to invest in this asset. Environmentally conscious investors are aware that more needs to be done to make cryptocurrency mining greener. Some companies like Tesla have even given up on considering Bitcoin payments, despite its owner had previously expressed support for the currency. (Tesla bought Bitcoin but didn’t sell it.) Despite these concerns, the use of green energy for cryptocurrency mining is on the rise as miners turn to renewable sources. It should be emphasized that more energy efficient forms of mining are available : those cryptocurrencies don’t require as much energy to protect their networks. So, if you are choosing a cryptocurrency to invest in, you should definitely consider the energy impact it could have on the environment.

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