Does Cryptocurrency Make a Good Investment?
One common question strikes everyone’s mind in 2021! Can one become filthy rich by making investment in cryptocurrency? Remember, there is an equal probability of losing all your investment and money as well! Are you ready to take up the risks? At the same time investment in cryptocurrency is regarded as profitable and fruitful in the long run.
For gaining direct exposure profit from high demanded digital currency, cryptocurrency can be worthy to make an investment! Although less lucrative yet safe option is to opt for the stocks of the companies having direct cryptocurrency exposure to be benefitted with profits and no chance of risks with skyrocketing of the demand.
If you really want to know whether crypto investment is good or not we must take a dig into the matter deeply. Can we start the analysis then?
Whether cryptocurrency is safe?
Certains aspects prove that cryptocurrency is not completely safe but some emerging indications serve green signal to cryptocurrency to stay and dominate.
Risks of cryptocurrency
Remember that cryptocurrency exchange is more prone to hack and other criminal activities. A single breach of security can lead to humongous losses for the investors have owned the digital currencies. So, safe storage of cryptocurrencies are really tough than buying bonds or stocks.
So leaving them freely on platforms like Coinbase makes the trading quite easy. But despite of such facility investors don’t like to keep them on the exchange platform as there is high risk of theft and cyberattacks.
Many owners of cryptocurrency prefer cold storage or offline storing option like paper wallets or hardware which has their own bunch of setbacks. In case you lose the private key then there is no other way of accessing your safely stored cryptocurrency.
Also no guarantee is there that any emerging crypto currency you are making invest will succeed. There is fierce competition amongst numerous blockchain projects leading to prevalence of scams in the industry. Only few projects can shatter the obstacles and flourish.
There can be complete cracking down of the regulators of the crypto industry if government finds that it acts as threat rather than being the innovation to the future.
Depending on the cutting-edge technology, cryptocurrency becomes threatening to the investors. The technology which is developed has not been proven in real scenarios.
Adoption of cryptocurrency
Irrespective of inherent risks both blockchain and cryptocurrency industries are flourishing in full potential. Essential financial infrastructure is well developed in which investors get full liberty to access the institutional-grade custody service. Both individual and professional investors progressively receive the much-needed tools for safeguarding and managing the crypto assets.
Future markets of the cryptocurrency are already established and numerous enterprises make direct exposure profit from this sector. PayPal and Square are name to a few financial giants for selling and buying cryptocurrency on their famous platforms. Both of these already invested millions of dollars in various digital assets.
Though certain aspects indicate the cryptocurrency risks yet the fast adoption pace is the clear indication that the industry is maturing gradually. Numerous companies and investors seek direct exposure gain from cryptocurrency seeming it safe for make huge sum of investment.
Is investing in crypto better choice?
Several cryptocurrencies such as Ethereum and Bitcoin launch to fulfil lofty objectives which are certain to attain over long horizons. Although success of the cryptocurrency is ascertain; in case a project reaches out to its goals then early investors will be rewarded richly in the long period of time. So, any cryptocurrency project needs widespread adoption for long-term success.
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Considering bitcoin for long-term investment
Bitcoin is the most popular cryptocurrency that has huge benefits from network effect. Nowadays most people want to invest in bitcoin as it is already owned by numerous individuals. Also to some investors it is digital gold and can be used as digital cash form as well.
Bitcoin investors believe that it will profit over the course of time due to fixed supply not that of fiat currencies supplies like Japanese Yen and U.S. dollar. Bitcoin supply is limited to below 21 million as currencies controlled by central bank can be printed with the consent of the influential politicians. But due to the depreciation of the fiat currencies its value will be high.
The bullish people must understand that in the long haul bitcoin will be potential very first global currency in use.
Considering ethereum for long-term investment
You can trade on ethereum platform by investing in ether the native coin in expectation to obtain more exposure to the portfolio in the respective platform. Bitcoin is the digital gold and ethereum is international computing platform supporting numerous cryptocurrencies alongside huge decentralised applications ecosystem (dapps).
The cryptocurrencies numbers you can find on Ethereum platform are mixed with dapps’ open-source nature. It enables golden chances for the platform to earn profits by making network effect for the creation of long-term and sustainable value. It always promotes smart contracts uses for automatic execution on the basis of written code of contract.
You will be surprised to know that the technology of smart technology is fundament potential for the disruption of huge industries including banking and real estate. It can make completely new digital currency-centric markets too.
With such enormous response the Ether token rises both in terms of value and utility. Now the investors are more than happy for Ethereum platform long-term potential providing them to make direct profit by investing in the ether token.
Do you need to invest in cryptocurrency?
The diversification of the portfolio will increase by buying some cryptocurrency. If you carefully notice earlier Bitcoin has no correlation on price with stock market of USA. Do you believe that it is going to take over the finance market with time?
If yes, then only you should invest in owning cryptocurrency. For each one you are going to invest, a thesis is important to understand whether it is going to stand in the future and why you should invest in it.
If you find it far way risky then there is other method of making profits with the cryptocurrencies rise. Just own stocks of conglomerates like PayPal, Square or Coinbase. You can also invest in CME group exchange that generates future of crypto trading. Although investing in these companies is profitable yet they don’t possess similar upside potential with that of direct investment in cryptocurrency.
However, you can enjoy unlimited profits while eliminating the risk by trading with Habana Token. Here in this platform, you can copy trade from the profitable traders to diminish the risk and trade easily.