To Invest Or Not To Invest In Cryptocurrency

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Cryptocurrency just like the name implies are digital currencies usually stored on the blockchain. Currently they can't be exchanged on the streets for a box of chocolates or used to buy your favorite pair of jeans yet but can be exchanged on the blockchain. It has been a trending topic among most people these days especially Gen Z's and millennials and atleast 50% of these population believe they will become crypto millionaires. These cryptocurrencies are exchanged between wallets without the conventional middleman like government, banks or brokers because they are completely decentralized. But before you hop on the trend there a few things you must be able to roll with.

First, they are not regulated. Even with the huge number of crypto investors all over the world most countries refuse or are yet to develop a clear regulatory framework for people with crypto assests. This means investors are totally exposed to just about anything on these platforms which is a major red flag for many and although some countries like the USA are making more effort to regulate some stable currencies there are just too many currencies on the blockchain which could make this task impossible. To stay on the safer side one should stick to more established and stable coins like Bitcoin or Ethereum.

Secondly, they are a huge risk compared to other forms of investment. Unlike real estate which can't be suddenly stolen your wallet can be hacked . These means you could lose all your money in a well coordinated cyber attack. Plus the volatility of the space is very risky especially if you are new. This is usually caused by the demand as well as the available supply of a particular currency and sometimes whales who buy a large percentage of a markets liquidity can influence its trend. This means your $100 could become $10 in a few days but this also works in the opposite direction for your benefit hence the beauty and curse of the market. And so it is advised that one only invests an amount one is willing to lose.

Next is the low adoption globally due to the anonymousity as well as the fact it isn't regulated. Nobody knows the creator of Bitcoin and most government believe it is a threat to the conventional financial system. And even though it enjoys a lot of attention only a small percentage of people understand what it is or how it works. A big example is the massive crackdown cryptocurrencies suffer in China and recently it announced a blanket ban on everything crypto as well as mining in it's region. Many other governments are also skeptical of it's main purpose and although haven't placed bans indirectly frown against it.

Cryptocurrencies suffer many other discrimination due to the fierce competition among old and new currencies as more currencies are being created day by day thereby making harder for people to decide what to invest in. This can be overcomed by proper research as this will help you weed the shit coins from the real coins while saving you a lot of time and money. While several factors paint cryptocurrencies in a bad light when studied carefully one can make steady profit both short and long term.



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