One of the top questions people usually ask is whether or not Cryptocurrency is indeed a good investment. The answer to this question is quite tricky because it could be a good investment, or it could not. Cryptocurrency can either get you filthy rich or you could also end up losing your money. Just like any other investment, crypto assets come with lots of risks, but also plenty of potential rewards. However, without a doubt, Cryptocurrency is a great investment, especially if you want to acquire direct exposure to the demand for digital currency.
So if you want to know how good this investment is, continue reading this piece.
Why you should consider investing in Cryptocurrency?
Investing in currencies such as Bitcoin and Ethereum is considered a “high-risk” investment. The price of cryptocurrencies is generally volatile; some can go wrong, others could turn out to be scams, while others may increase in value and produce a great return for the investors. If you are considering investing in Cryptocurrency, you need to find a trusted and reliable trading platform such as Bitfinex. You can read about the trusted Bitfinex review.
To some people, Cryptocurrency could remain niche or vanish just like that. But Cryptocurrency should be considered a high-risk investment just like any other investment. With more and more businesses accepting crypto, it is now evident that Cryptocurrency is here to stay and it will not disappear any time soon.
Some of the big brands that have accepted crypto include Starbucks, Tesla, and other top casinos. This proves that crypto will soon find its way into so many big brands, making it a worthy investment. But just like any other investment, before you invest in crypto, you need to do extensive diligence and don’t pin your hopes on one Cryptocurrency or one company. The best decision is to spread your money across so that you can spread the risk. Again, remember to invest only what you can afford to lose.
Is Cryptocurrency safe?
To be honest, Cryptocurrency also presents some risks that are not as prevalent in traditional markets as those for bonds and stocks. For instance, crypto exchanges have been quite vulnerable to hacks and other criminal activities. Of course, these security violations have led to significant losses for several investors who have had their digital currencies stolen.
Additionally, scams and frauds have increasingly become widespread in the crypto world. Some hypesters promise investors amazing returns that they cannot fulfill since they usually peddle fool’s gold instead of legitimate blockchain projects. Investors who fall into this trap usually suffer losses when these projects fail eventually.
Finally, it is not as easy to store cryptocurrencies as it is to store stocks and bonds. While exchanges such as Coinbase make it fairly easy to buy and sell crypto assets, such as Ethereum or Bitcoin, many people don’t like the idea of keeping their digital assets on exchanges because of theft and cyberattacks.