If you have been following the recent headlines on the soaring price of Bitcoin, you might have dreamed of investing your fortune into the fuel of the future’s economy. But, is investing in cryptocurrency good? Only one way to find out.
Over the last 30 days, Bitcoin has witnessed severe demand, following its recent price surge. Investors, including me, have tossed the cash in Bitcoin stakes, hoping for further growth. Some pro players in the market even suggested that there had been no better time for investing your fortune in crypto assets. And honestly, whether you agree or not, cryptocurrencies like Bitcoin and Blockchain technology are going to be the fossil-fuel for the future’s economy.
So, has the time come for getting plunged into the ‘pool’ of cryptocurrencies? And, is cryptocurrency really the future we all are heading towards? Definitely! But before you say good-bye to your Dollars, Euros, or Rupees, and say hello to Bitcoin or Ether, here’s what you should know. Because while the profits in crypto investments far exceeds, so do their risks. As the wisest investor advised, “Never invest in anything you don’t understand!” Yes, he’s Warren Buffet!
IS INVESTING IN CRYPTOCURRENCY RISKY?
Simply put together, not just digital assets, but every financial investment carries some degree of risk. Just like every form of speculative investment, purchasing cryptos brings some well-known risks. For example, the price could drop precipitously and damage to hardware wallets can wipe out your entire pool of assets. If we look into the past, Bitcoin has witnessed severe fluctuations, remarkably when the Bitcoin price swung between $900 & $20,000 back in 2017.
But don’t you worry, because the same degree of risks come with just any other form of investments, not just cryptos.
IS CRYPTOCURRENCY GOOD FOR LONG-TERM INVESTMENTS?
Unlike traditional forms of currency like the American Dollar, British Pound, or the Indian Rupee, cryptocurrencies are ‘decentralized’ meaning that they are not governed by any nation or bank. And the surge of anonymity and secure transactions have throned cryptos like Bitcoin as the fossil-fuel of the future economy. But understand that blockchain technology is relatively new, so, always use the philosophy of ‘Buyer Beware’ before investing in crypto assets.
WHAT ARE THE BEST TOKENS AS CRYPTO ASSETS?
Just five years back, it was headscracting to name any cryptocurrency other than Bitcoin. With its whopping $596B in Market Capitalisation, Bitcoin indeed remains as the monopoly, but it’s not the only crypto. As of writing this article, Ether & Tether secures the second and third rank, with $142B & $24B respectively, according to CoinMarketCap. If you take my advice, I’d suggest you split your investment across different crypto tokens, for better added security.
Please remember, your decision shouldn’t be constituted by any financial advice, and you should treat this article as the supplementary information to add your existing, unbiased knowledge base. So, do you think cryptocurrency is the future? Let us know in the comments below. If you found this article informative, be sure to check out other works, like the one we did on ten things to know before investing in cryptocurrency.