What We Should Always Keep In Mind About Bitcoin And Cryptocurrencies

in LeoFinance6 months ago

Analyzing the reasons why cryptocurrencies have a great future is something most fascinating, and this is so not only because of the implications that this fact entails, but because the matter is more complex than most of people a priori think.

Thousands of news for and against

If we talk about Bitcoin or any other cryptocurrency, we come across thousands of news stories on social networks and on the internet in general every day. The issue here is notoriety and that is the obvious and most relevant thing in all of this. The adoption of cryptocurrencies is something that is on the horizon, but on a distant horizon. While currently those of us in the cryptographic world are walking as pioneers on a completely new and still unknown planet.

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Because this is simply the case, everything within the framework of cryptocurrencies since the Bitcoin White Paper by Satoshi Nakamoto has been a journey full of the most diverse adventures. And like any adventurous trip, it has had its ups and downs, good moments and not so good moments. Exciting moments and desperate moments.

This Russian roulette of overflowing emotions is what is disconcerting for many people. Many people despair at the volatility of cryptocurrencies like Bitcoin. They forget that cryptocurrencies are a concept that goes far beyond payment methods.

When faced with bad news, we will be very wise if we ignore it and focus on what is truly important: Cryptocurrencies are increasingly present in our lives.

A means of payment, yes, but also much more than that

Yes, cryptocurrencies are a means of payment, without a doubt, and a much better one than fiat money as we know and understand it. But it is also true that they are also much more than that. Because the technology behind cryptocurrencies, the blockchain, has as many potential applications in the reality of countries as there are grains of sand in the sea.

It seems like an exaggeration to say so, but no, it is not. The key is to simply accept and understand that cryptocurrencies are relatively new territory. Yes, there has been progress in many things since the creation of Bitcoin in 2009, but not enough to still say that cryptocurrencies are the epicenter of the world economy.

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Although we may be enthusiastic about it, and we sense that this moment will certainly come in the future, the truth is that it has not yet arrived and that there is a long way to go for that to happen. What it means is that many years of developments and advances are missing for Bitcoin and most important cryptocurrencies to be massively adopted worldwide.

Great accesability, great security

But until global adoption happens, we, who are already using Bitcoin and cryptocurrencies, enjoy the great advantages and benefits they offer us. And among these benefits we have that they are very secure, due to the issue of decentralization and the use of the blockchain. But in addition, cryptocurrencies have allowed the existence of an important phenomenon: The solution to the problem of lack of banking.

Because in the poorest countries, where many people have trouble opening bank accounts (for whatever reason), cryptocurrencies have turned out to be a solution that is as definitive as it is innovative and effective.

Because to open a cryptographic Wallet, no one will ask you to submit tons of documents. You don't need identification and you don't need to explain anything. This has another great benefit, and that is that we are truly owners of our money.

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We don't have to explain to governments about the money we have in our Wallets. And we don't have to wait for approvals from banking groups to transfer our crypto funds. If we have a certain amount of a cryptocurrency, we can transfer it to anyone anywhere on the planet in a very short time. We have no intermediaries other than the blockchain network of the cryptocurrency we are using. And transfer fees are tiny and insignificant, especially compared to those when transferring fiat money through the normal banking system.

So this allows this gives us a freedom. Our money is no longer limited by the laws of one country or another, so the lines that separate the borders between countries at an economic level become more blurred and diffuse.

Understand everything in the big context

As I think I've mentioned before, things in the crypto space seem to have come a long way since 2009 so far. But everything is still very new, there is too much to create and develop.

So we are pioneers in an area that can make us millionaires. And this will be the case if we remain aware and constant about what cryptocurrencies represent in the current technological and financial context.

This requires enormous emotional control. Because if we let ourselves be carried away by sensations every step of the way, we will end up abandoning cryptocurrencies. With shattered nerves and empty pockets.

The point is to understand the whole intelligently.

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Understanding what we are: Investors or traders

And one of the smartest things to understand in all of this is that capitalization is important. And I'm not talking here about the capitalization of each cryptocurrency and crypto project, but about ourselves as traders and investors.

But this implies understanding what we are, that is, we are traders or we are investors. One thing and the other are totally different. What makes the difference between one and the other is time and vision.

Being an investor involves projecting profits or losses over a very long time, which can range from months to years. But trading is something completely different, because it is based on shorter periods of time.

But, whether we are traders or investors, there is another crucial issue here, and that is understanding how we will take profits and cut losses. Because the only thing that is stable in the cryptographic field are stablecoins, just as the name itself suggests. But when it comes to the price of almost every other cryptocurrency on the market, the recurring factor is extreme volatility.

A cryptocurrency like Bitcoin rises and falls with equal ease, even erratically on many occasions. But with a trading or investment strategy that has clearly established objectives, it is easy to turn volatility into our ally instead of our enemy.

The capitalization that we will achieve over time when we are organized and are clear about what we are in the market, will be significant and important, and this is what we must seek.

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Perseverance, despite setbacks

Over time we will encounter setbacks, such investments or operations that go wrong and end up giving us losses. But perseverance despite setbacks will be the most important differentiating factor that will allow us to succeed where most people fail miserably.

So perseverance is a crucial issue here. And not only for the mere fact of persisting, but also because it helps us to be increasingly aware of what we are in the market and this allows us to act in a timely, forceful and effective manner.

So, being pioneers in the cryptographic field is a great opportunity for economic growth for the future. And this is what you always have to remember.

What do you think about the topic discussed? Please comment.

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