Blockchain is the most talked about technology these days and there has been a significant surge in people joining the rat race. Though there are numerous people who invested at the right time and got the best of their lives out of it. However, one just cannot overlook the other side of it where people have lost their lifelong earnings to it. As it is said, the profit lies within the risk and you should not fear the risk if you want big profits. Well, if you’re a neophyte in blockchain technology and want to earn big profits in less time, here are a few things you should take care of.
Today, we’re going to suggest you the 5 tips for new blockchain investors to help them make a decision towards a better future
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- Learn: Before you jump on the bandwagon, it is important that you understand the technology well. It is understood that blockchain guides are full of complexed words and terminologies, you may still have some idea on its working. You must first understand what blockchain is all about and how does it work. You must also accept the truth that blockchain is vulnerable and may collapse at any moment without a prior intimation. If you are attracted towards a specific digital currency, take some time out and read its white papers.
- Caution: As stated above, blockchain is vulnerable. The chances of you losing everything invested in it are equal to your earnings. You must understand that the profit is not guaranteed and the currencies are not yet accepted as legal tenders. One of the biggest fears of digital currencies is the government banning or controlling them through any way possible. The results are likely to be disappointing if the government refuses or bans the transactions or the exchanges.
- Safety: Once you’ve learnt about blockchain and understood the basics with the precautions required, it is important that you safeguard your investment. Your blockchain investment would be in the form of digital coins that needs to be kept in wallets. The selection of a wallet must be done sincerely and after evaluating various factors like goodwill, transaction charges, adaptability, processing time etc. You must go for the wallet that is popular among people.
- Prepare for volatility: Now that you know that blockchain is not a one-way graph. If it goes up, it may also dive to the depth. You must be prepared to face any difficulty or the bad phase and should not lose your chill. If you panic, you may take an adverse step which may result in a huge loss.
- Taxes: If everything goes okay and you create your own successful story of becoming a “Bitcoin Millionaire”, be a “Lannister” and pay your debts to the government. Do not hide your earnings just to be spared of taxes. Be assured that your govt. knows how, when and how much have you earned. Don’t make a song and dance about it and pay your income tax honestly.
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Overall, blockchain is a great technology with seamless opportunities for new investors. It is also important that you know more about the technology and the working before following others blindly. If you just want to invest without knowing the pros and cons, blockchain may be just a mirage of the “ultimate fortune”.