Cryptocurrency has had a fantastic year. Digital currencies are the newest investment craze, and several forms of currencies have broken records.
The most popular sort of cryptocurrency, Bitcoin , has seen its price rise by about 90% this year. This year, Ethereum has increased by almost 435 percent. In the same time span, the price of Dogecoin has risen by a stunning 7,800%.
If you’re on the fence about investing in cryptocurrency, it might be difficult to determine whether it’s a good idea. For every investor who claims it will transform the world, there is another who claims it is a bad investment.
The truth is that no one knows what the future of cryptocurrency holds. However, there are a few reasons why you might consider investing – as well as reasons why you should avoid it. For the near future, we believe a bull run is ahead of us and quite a bit of money could be made between today and September so get in via Binance now and be part of the revolution !
Why should you bet on cryptocurrency?
1. It has the potential to be the next big thing.
True, cryptocurrency has the capacity to revolutionize the world as we know it. Crypto is a worldwide currency that can be used for cross-border transactions without incurring hefty costs, which has the potential to transform the banking and financial services industry.
At the moment, bitcoin is not generally acknowledged all over the world. However, when more shops choose to accept it as a means of payment, it has the potential to have a huge impact on society. You may get in on the ground floor if you invest today.
Bitcoin has also been dubbed “digital gold” due to the restricted quantity of coins that may be minted. Bitcoin supporters argue that its scarcity boosts its value, which could drive up its price.
2. It may help to diversify your assets.
If you’re keen to be engaged in the crypto industry, investing a modest amount of your money in bitcoin may not be a bad idea.
In fact, expanding into a new field can provide you with an incentive to learn more about cryptocurrency and how it operates. After all, when you have a stake in the game, it’s generally easier to explore unknown things. And the more you learn about cryptocurrency, the better decisions you’ll be able to make.
Because bitcoin is a very volatile investment, make sure you’re only investing money you can afford to lose. Furthermore, choose your investments intelligently. Not all cryptocurrencies are made equal, so if you decide to invest, do your research to ensure you’re getting the best one for your needs.
Why should you avoid cryptocurrency?
1. It is quite volatile.
One of the most significant hazards of investing in cryptocurrency is its tremendous volatility. Bitcoin, for example, lost almost 80% of its value at one point and continues to undergo volatility on a regular basis.
If you’re a risk-averse person, investing in cryptocurrency could be quite distressing. Even if bitcoin succeeds in the long run (which is far from certain), not all investors have the stomach to deal with the ups and downs in the short term.
2. It is really speculative.
Nobody knows how cryptocurrency will perform in the long run. Even some of the most prominent financial figures disagree on whether cryptocurrency is a sound investment. Speculation is a consideration to consider with all investment to some level. Even if you invest in relatively safe equities from well-established companies, there is no guarantee that those stocks will continue to perform well over time.
Cryptocurrencies, on the other hand, are far riskier than most stocks because they are a very new sort of investment. We’re in new ground right now, so it’s unclear whether cryptocurrencies will find a role in society or go away in a few years. Because of this unpredictability, cryptocurrency is a high-risk investment.
3. There are risks associated with cryptocurrency ownership.
Aside from the dangers associated with crypto as an investment, there are additional hazards associated with owning and maintaining cryptocurrency itself. Cryptocurrencies cannot be traded on traditional stock exchanges. Rather, they are purchased and sold through cryptocurrency exchanges. To store your money, you’ll also need a specialized digital wallet.
Because digital wallets are not impenetrable to hackers, there is a possibility that your funds will be taken. Furthermore, if you lose your password for your online wallet, you will be unable to access your investments.
Weighing the benefits and drawbacks
Investing in cryptocurrencies has both perks and downsides. Finally, whether you invest will be determined largely by your risk tolerance.
If you’re willing to take on more risk and feel cryptocurrencies will be the next big thing, it can be worth adding a little amount to your portfolio. Otherwise, you should avoid cryptocurrency for the time being.
If you are one to take a bet, our little birds are telling us that now is the time ! According to all the fundamentals we can see the crypto market make a bull run till at least September so step in ! One of the most up to date and fast platforms out there to trade and invest is BINANCE , no delays, no frills and many ways to cash out! Want to gamble with the earned crypto ? You can send any crypto to any other institution straight from binance!