Almost 12 years ago, a Floridian programmer named Laszlo Hanyecz was craving pizza. So, he bought two.
But the catch here is, that he paid in Bitcoin in the first-ever recorded real-world transaction using crypto.
He was willing to pay 10,000 Bitcoin to anyone who could place an order, collect the cryptocurrency, and bring it to him. On May 22, Jeremy Sturdivant, a 19-year-old at the time, accepted the offer of 10,000 Bitcoin for two pizzas, valued at around $41 back then.
Years later, Hanyecz recalls that day with a lot of regrets. If he would have held those Bitcoins, they would have been valued at Rs 22,60,68,90,000 today.
At the Bitcoin all-time high, those Bitcoins were valued at Rs 51,75,00,00,000.
If you're looking to use Bitcoin to preserve capital or grow your assets, its price is highly volatile—there is no guarantee that you will see any returns; you're just as likely to lose everything you invest as you are to make any gains.
This is according to an article on Investopedia.
The most common (and safest way) to invest in cryptocurrency is to use the money that you're absolutely okay with losing. Because if you're not spending time monitoring the indexes of cryptocurrencies (and even then guaranteeing returns is not possible) you're in for a bumpy ride.
Let's say you've already invested in cryptocurrencies - what now?
Here's how crypto investors are dealing with the crashing values of cryptocurrencies.
The term “HODL” began with the misspelling of the word “hold” in an online cryptocurrency forum in 2013. Readers quickly embraced the typo, and it gained its own definition: HODL refers to the strategy of holding onto digital assets amid extreme price changes. The word continues to be used within the crypto community and has since been used as an acronym that playfully underscores that idea: "Hold On for Dear Life."
HODL's strategy is a very long-term strategy. In fact, there are Bitcoin HODLERS who have immobilized coins for more than 10 years and with it, the gains they have made have been immense.
So as a long-term strategy, holding on to your cryptocurrencies might be a good idea.
Where is the future of cryptocurrencies?
We can speculate on what value cryptocurrency may have for investors in the coming months and years, but the reality is it’s still a new and speculative investment, without much history on which to base predictions. No matter what a given expert thinks or says, no one really knows. That’s why it’s important to only invest what you’re prepared to lose and stick to more conventional investments for long-term wealth building.
Keep your investments small, and never put crypto investments above any other financial goals like saving for retirement and paying off high-interest debt.