Many times, new investors in the crypto market have become millionaires, thanks to cryptocurrency. And on several occasions, the price of Bitcoin, for instance, has risen, despite the repeated warnings of nay-sayers that it couldn’t.

Many people simply CANNOT talk about their journey to financial freedom, without talking about crypto. And more people are hopeful that somehow if they could take a leap of faith, cryptocurrency could be the key to their financial dreams coming true.

You may be feeling the same way too.

But beneath that enthusiasm, there might be a fluttering feeling called fear, especially now, when crypto enthusiasts are having a very difficult time.

You wonder if it’s safe to invest in crypto, if there is a right way, what the dangers and risks are and what tips and tricks could help you on your crypto journey.

In this article, you’ll get your answers to everything.

Is It Still Safe To Invest In Crypto?

To be honest, the answer is complicated. Cryptocurrencies can be the more risky option in some situations, while also being the more secure option in other circumstances. At the end of this article, you’ll have to sit down and decide for yourself what ‘safety’ means to you.

Recently, the price of Bitcoin fell to $16,000 and Ethereum, the second-most valuable cryptocurrency, reached a record price of just under $4,900.

On top of that, the aftermath of the failure of FTX, which used to be one of the biggest cryptocurrency exchanges in the world, is still being dealt with by the cryptocurrency industry as well as the institutions and investors who have invested billions in it.

In light of this, should you remain hopeful about the future of crypto or should you run for your life? Is crypto still a safe investment at this time?

If you ask us at Vircap, we’ll say yes. This is because we believe in the long-term value of cryptocurrency, but don’t take our word for it.

History is a really good teacher

According to Statista.com, the price of bitcoin was $18,114.41 in November 2020 but shot up to $57,834.30 in November 2021.

In the same year, it went up to a record high of $69,000. So, if you had bought just one bitcoin in 2020 and sold it in 2021, you would have made a whooping profit of $50,885.59 and if you happen to be Nigerian, you would have cashed out a sum of over 30 million Naira and the inflation or currency devaluation would have had nothing on you.

Right now, bitcoin is worth $16,826.02. Instead of seeing it as a bad investment, it may be smart to look at it as buying at a discount — some sort of black Friday deal.

Yes, there is still uncertainty and things don’t always pan out the way we expect them to go. But almost every investment has its own risks and it is already established in the investment world that the higher the risks, the greater the reward.

But that’s just history, right?

What are the experts saying?

According to Jurrien Timmer, the Director of Global Macro at Fidelity Investments, bitcoin could be worth up to $100,000 in two years time, and its fair market value is currently between $40,000 and $50,000.

Also, JPMorgan Chase, an American multinational investment bank and global financial leader, recently valued the coin at $38,000, which is way higher than its current price.

Furthermore, Chris Brendler, Managing Director and Senior Market Analyst at D.A. Davidson anticipates a recovery in bitcoin’s value to reach close to $38,000 by the end of this year and $50,000 by the end of 2023.

In his own words, bitcoin “tends to have these exaggerated moves on the upside when folks are only buying because they want it to go up in value. When it starts to go down, those folks exit. But the price of bitcoin will grow higher than it is today in the next coming years.”

So what does this mean?

If you’re wondering what this means for you, as someone who is interested in bitcoin or any other cryptocurrency, the answer is simple:

Some financial experts believe that investing in cryptocurrencies may be worth the short-term risks if you can clearly define your long-term objectives and not go in without being careful enough to take the necessary precautions.

While we are not dismissing the hard fact that there are many risks involved with investing in cryptocurrency, there are safer ways to go about it.

What is the Safest Way to Invest in Cryptocurrency?

Before making an investment in bitcoin or any other cryptocurrencies during this current downturn, keep in mind the following safety tips:

1. Be wary of scams. Make sure you are aware of dangerous crypto scams and how to avoid them.
2. Choose your crypto exchange platform carefully. One of the best ways to know a safer online platform is that it typically requires identification verification from all its users. This is because they adhere to Know Your Customer (KYC) and Anti Money Laundering (AML) regulations.

Customers must verify their identity, before accessing certain trading features on top-notch cryptocurrency exchanges like Vircap. It’s generally a good idea to choose an exchange or marketplace that takes security seriously and uses these kinds of measures to verify your identity if you’re just getting started in the cryptocurrency world.

Your security is our top concern at Vircap. Other security measures we employ to safeguard all of your transactions include two-factor authentication, escrow services, etc.

3. Research cryptocurrencies before investing in them.

4. Store most of your crypto in a secure crypto wallet.

5. Diversify your portfolio. Don’t put all your eggs in one basket.

6. Start small. Don’t invest anything you are not prepared to lose.

Despite the risks that accompany cryptocurrency, it is important to note that one of the benefits of decentralized blockchain technology is actually security. Bear in mind that in order to give buyers and sellers more security in their transactions and eliminate the need for a third party, the cryptocurrency known as bitcoin was developed.

If you’d like to learn more about blockchain technology, cryptocurrencies and security, download our free Cryptocurrency 101 eBook here and visit our website to learn more about the amazing features we offer on the platform.

Bottomline

It’s no secret that crypto is a high-risk investment. The value of digital currencies can fluctuate wildly, often by huge amounts within a short period of time.

But even in a bear market, there are still opportunities to profit from investing in crypto. And one of the best and safest ways to do that is by using a reputable and reliable crypto exchange like Vircap.

Vircap is a leading crypto exchange that offers the benefit of security and low fees, among other things, to its users. It’s also one of the most user-friendly exchanges, making it a great choice for both experienced investors and newcomers to the crypto world.

So if you’re looking to invest in crypto in a bear market, be sure to check out Vircap!

We’d like to assure you of our commitment to providing a safe and reliable platform for you. Remember, we are here to support you through whatever the markets may bring.

Contact us at comms@vircap.io

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