Is it necessary to put money into cryptocurrency?

From a financial perspective, the necessity of putting money into cryptocurrency is contingent upon an individual's risk-return profile. Cryptocurrency has exhibited significant price volatility, which may present substantial opportunities for high returns as well as the potential for significant losses. For investors with a high-risk tolerance and a long-term investment horizon, a strategic allocation to cryptocurrency as part of a diversified portfolio may be considered to capture potential upside gains.

Philosophically, the decision to invest in cryptocurrency can also be viewed through the lens of technological innovation and decentralization. Embracing cryptocurrency signifies a belief in the transformative power of blockchain technology and the potential for reshaping traditional financial systems. For some, the philosophical alignment with the principles of decentralization and the democratization of finance serves as a compelling reason to consider investing in cryptocurrency beyond purely financial considerations.

Moreover, the regulatory landscape and institutional adoption of cryptocurrency play pivotal roles in determining the necessity of investing in this asset class. As the regulatory environment continues to evolve and institutional interest in cryptocurrency grows, individuals must assess the impact of these external factors on the necessity of including cryptocurrency investments in their portfolios.
The necessity of putting money into cryptocurrency is a highly individualized decision that requires a comprehensive evaluation of financial objectives, risk tolerance, philosophical beliefs, and the evolving regulatory and institutional landscape. It is imperative for investors to approach this decision with prudence, conduct thorough due diligence, and seek professional advice to determine whether investing in cryptocurrency aligns with their overall investment strategy and personal values.

Bitcoin and other coins have always been marked by their fluctuating exchange rates, making it challenging for analysts to predict their future trajectory. The exchange rate can swing dramatically within minutes, and overnight the value could surge or plummet by thousands of dollars.

Even the most skilled analysts cannot reliably recommend whether investing in cryptocurrency is worth the risk. The inherent volatility of this market renders it an unreliable investment. This holds true for all types of cryptocurrencies, including BTC. As such, investing in crypto must be approached with an acceptance of the inherent risk. While it can be a lucrative vehicle for trading, analysts caution that investment should only be made "for a fart".

Considering the aforementioned factors, two approaches emerge for potential investors. Those who have already invested in cryptocurrency may find it prudent to hold onto their coins. On the other hand, those looking to sell digital currencies should wait for a downturn in the exchange rate before making a purchase. Selling coins when their value increases is advisable, and extended waiting periods are generally unnecessary.

For users interested in short-term deposits, the extreme price volatility poses a significant risk. Fluctuations of up to 60% within a year can impose considerable strain on traders. Furthermore, the value of a coin may drop close to zero, though this is less likely for coins in the top ten rankings. However, regulatory changes and bans on cryptocurrency could also precipitate a decline in the exchange rate.

On the other hand, those considering long-term investment face risks associated with the cryptocurrency system itself. Decentralization from traditional banking institutions places full responsibility for secure access and protection on the user. Loss of access, whether through forgotten passwords or device malfunctions, can result in the disappearance of all funds held in cryptocurrency. Additionally, the compromise of an account or trading platform by hackers could lead to the theft of savings.

It should also be noted that transactions in the cryptocurrency system are irreversible, and once funds have been transferred, they cannot be cancelled. Mistaken transfers to incorrect addresses are unrecoverable, further emphasizing the high-stakes nature of cryptocurrency investment.
The decision of whether to invest in cryptocurrency resides with the user. Despite its profitability, the inherent risk cannot be overlooked. Those willing to take the plunge should heed the advice of experienced analysts and consider investing in coins within the top ten rankings, which are generally the most lucrative at present.

I anticipate a further decline in market value from current positions and advise on gradually acquiring fundamental cryptocurrencies such as BTC, ETH, LTC, ZCASH, and others.

I strongly advise against investing in tokens and ICO projects due to their inherent risks.

It is important to carefully select crypto exchanges and consider working across multiple platforms simultaneously.

Avoid keeping large amounts of cryptocurrency in exchange wallets. Instead, acquire a cold wallet for long-term storage of your primary assets.

Examine the available currency pairs on exchanges, as favorable ratios are often transient.

Explore arbitrage opportunities if traditional market trading is not viable.

I recommend steering clear of telegram channels offering buy/sell signals for assets, as the outcomes are uncertain at best and potentially detrimental at worst.

Initial cryptocurrency trading is not advisable without a solid grasp of technical analysis, as predicting asset price movements without this knowledge is unlikely.

Attempting fundamental analysis of the cryptocurrency market is ill-advised, as it is not feasible given the current state of the market. News background is often subjective and not fundamental.

At the same time, I caution against simply purchasing and holding cryptocurrency without an active strategy, unless one has ample time and patience for the next 3-5 years.

Robotic arbitrage trading should also be avoided, as algorithms may lead to investments in altcoins that depreciate and fail to recover.

The volatile nature of the cryptocurrency market makes it difficult for analysts to predict trend reversals due to the market's youth and susceptibility to manipulations.

Based on my three-year experience in this market, I estimate a potential market turnaround in the next 1-3 years, as there are still participants in the market who have yet to exit, despite many others facing significant losses.

During this time, it is possible to develop a solid understanding of technical analysis in the crypto market and engage in trading while the market remains highly volatile.