The 2 biggest obstacles to buying crypto – and how to overcome them

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When investing in cryptocurrencies, be aware that you are also investing in everything that comes with this asset class. This includes mainstream media skepticism, criticism from holders of competing investments, fluctuations in volatility, complex technology, regulatory threats and government bans, and even environmental concerns. And there are ordinary personal fears, uncertainties and doubts. Crypto holders affectionately call out all the fear, uncertainty, and doubt about investing in FUD.

Among all these issues that keep people from buying crypto, two stand out in particular.

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Volatility

Bakkt is an asset platform offering the trading and storage of a range of digital assets for consumers and institutional investors. Its recently released US Consumer Crypto Survey of over 2,000 US consumers explored the perceptions and behaviors of everyday investors regarding cryptos and digital assets. According to research, the biggest obstacle to buying Bitcoin, or any cryptocurrency, was “too much volatility” within this asset class – 32% of respondents said it was their biggest obstacle.

While this is a legitimate concern, here are a few things to consider to help overcome this particular issue.

High volatility is not unique to crypto. There are several asset classes that have market fluctuations comparable to those that occur with crypto, including: commodities, futures, and speculative bonds. Remember that with higher risk comes a higher reward, and there is no such thing as 100% risk-free investing. Even gold, real estate, and bonds rated triple A come with some degree of risk and valuation swings. Unless you are an experienced day trader, you don’t have to react to the quick ups and downs that occur with cryptocurrencies. Understanding your long-term investment goals, making a plan and sticking to it is essential. Just because the crypto market is fluctuating up or down doesn’t mean you need to respond in kind. You don’t experience a real loss until you sell your assets. So when things slow down – as they will – just keep holding onto your cryptos, or “hodl” (rhymes with accelerator). Like us crypto nerds like to say, “Keep Calm and Hodl On”. As with the stock market, don’t watch daily gyrations – zoom out for a wide view. Invest only an amount that you can comfortably afford to risk – start small. Don’t take out a loan, credit card debt, or a second mortgage to invest. It can be helpful to reduce the dollar cost in crypto bit by bit to boost your comfort and confidence. Practice with a demo account – several digital exchanges allow you to create an account with “fake” funds so you can practice making trades. It’s a great way to learn risk-free. Know where to start

The second most cited reason for not buying cryptocurrency was ‘not knowing where to start’, as expressed by 24% of respondents. This is another good faith issue for those curious about crypto, especially when you consider the complexity of navigating digital exchanges, selecting a digital wallet, and linking that wallet to your. accounts, not to mention selecting the right crypto for your investment goals.

Fortunately, there are some great resources to help you get started on your cryptocurrency educational journey. Two of the best repositories for crypto ed are free.

The first is the Crypto Explainer portal from Coindesk. Each of its thematic areas has learning modules for the training of beginners, intermediates and experts. The second resource is the Coin Bureau video channel on YouTube. It has been a trusted resource for years in the crypto space, with 1.4 million subscribers. It has a library of over 400 videos covering virtually every topic in the cryptosphere, with new videos added every week.

It is reasonable to be wary when investing in crypto, as you are also investing in everything associated with it, including volatility and not knowing where to start. But if you keep your eyes on your long-term investment goals and educate yourself, you are likely to overcome your internal hurdles.

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