Should I invest in Cryptocurrency?
Cryptocurrency is no stranger to any of us now, and most of us are thinking to ourselves, “With so many people having invested and earned, is it too late for me to hop onto the bandwagon?” Thousands of guides have been written to help new investors get started in cryptocurrency, but it is clear that investing in cryptocurrency is not a straightforward endeavour.
If you do not know what is Cryptocurrency, here is a quick summary. Cryptocurrency is a digital currency in which works as a medium of exchange. Cryptography is used to secure and verify each transaction and also to control the creation of new coins.
Firstly, cryptocurrencies are more volatile than traditional assets, which set it as an asset class riskier than what the average Joe is comfortable with. Take Bitcoin as an example; its value at the end of Apr 17 was $1,349 while it's valued just last month was $9,244.
Secondly, learning how to trade and buy cryptocurrencies can be vexatious with security issues and difficulties in working with multiple exchanges.
So, it sounds like a bad idea to invest in cryptocurrency right? Of course, there’s always the other side of the coin. Before you invest in cryptocurrency, here’s a list of the advantages and disadvantages of investing in cryptocurrencies.
Not for the Weak-Hearted: As the cryptocurrency market is very volatile, the price of Bitcoin can swing downwards by a large margin in a day. You won’t want to wake up one morning and realise your Bitcoin value has dropped way too much and have a panic attack by selling your Bitcoin, only to see it rise the next day.
Cryptocurrency will stay, but the top coins currently might not stick around for long: Let’s say you invest in Bitcoin today, few years down the road, Bitcoin might not be around anymore even if Cryptocurrency remains.
Trading platform for cryptocurrency: If you want to trade on the stock market, you have to buy GBTC (Bitcoin Investment Trust) which trades at a premium. Though another simple way will be to trade on platforms like Coinbase, which also, charges a premium despite lower.
Bubble, fret not: Let’s say cryptocurrency is in a bubble and the current price is lower than that of the highest rate ever seen, cryptocurrency could become an essential medium of exchange and store of value in the future. The future of cryptocurrency is endless.
Be smart, earn smart: As long as you time your buys and sells correctly, you can often buy low and sell high due to the market volatility.
Safer than you think: Blockchain is one of the most secure platforms as every new block, is assigned an encrypted identity and network participants will validate it for approval before adding.
After knowing the gist of it, you may be wondering how do you start making your first step into this field. NuMoney has an over the counter service where they help beginners start off their cryptocurrency journey. From educating the public about cryptocurrencies to setting up crypto wallets to sending the coins straight to you. It's like going grocery shopping; you’ll only need to bring cash with you. For more information, head on to Numoney!