Whether to invest in cryptocurrency or not ?

cryptocurrency

Invest in Cryptocurrencies or not ?

There have been many cryptocurrencies available in the internet presently, like Bitcoin, Litecoin, Ethereum, etc. Each cryptocurrency has its own pros and cons. So before you invest in cryptocurrencies you are required to research about every single detail.

Should you invest in cryptocurrencies ?

Cryptocurrency sometimes turn out to be a good investment but sometimes not. It all depends on luck. As the concept of cryptocurrency is too young and the market is still volatile, there is no clear yes or no answer for this.

How to invest in cryptocurrencies ?

If you are really interested to invest in cryptocurrencies, and not just want to buy, sell or trade them, then there are a few options you can look out for. Any new investor can choose between GBTC trust, which is sold in stock market, a cryptocurrency IRA or an exchange-broker-wallet hybrid. This allows customer to buy or sell actual cryptocurrency.

The least risky coin to invest in would be the coin which has been in the market the longest and has the highest market cap and volume. Litecoin, Bitcoin and Ethereum rank the highest in the list. Among these three, obviously, Bitcoin is in the top and also most expensive.

Pros and cons to be remembered before investing in cryptocurrency.

cryptocurrency
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Pros

  1. The crypto currency market is still very new. The most optimistic investors have predicted that the future prices have a very good chance of going high.

 

  1. Even if cryptocurrency is a bubble yet for many people, cryptocurrencies soon will become an important medium of exchange. And if the future price is higher than the current highest price, then it is a good long term bet.

 

  1. Since the market is really unstable if you can calculate the correct time to buy and sell, there is a huge money in the business.

 

  1. Now setting aside all other risks, we have to admit cryptocurrency is an exciting invention of 21st century. It is a decentralized digital currency that works on the interesting blockchain technology. If you have some spare money to invest, which wouldn’t make a huge difference if you lose, cryptocurrency is a good place for that.

 

Cons

 

  1. Although cryptocurrency is considered a great long-term investment, we cannot tell for sure how long will it stick around. The less popular coins have the highest risk of withering away.

 

  1. The market always needs time for correcting and slumping. There might be times, as is seen with shares of Microsoft, when the investor has to take a loss or sit on a loss for quite some time. But there would be a time when the profit can get really good. Hence, the investor requires to be patient.

 

  1. The regulators of some major countries like US, Russia, China have decided to take a firm hand against cryptocurrency. They might not be able to crush it altogether, but they are surely determined to make life harder for investors.

 

Cryptocurrency might be a risky business to dwell in, if the government favours it in the next few years, it might achieve a very profitable margin.

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