Is cryptocurrency a good investment?
We’ve mentioned in our previous articles that many people choose to invest in crypto, so, in this article, let’s go a little deeper into this topic, answering the question: “Is cryptocurrency a good investment?”.
As the price of a digital currency can rise anytime, many see these tools as a real opportunity to make money.
The problem is that, just like in the case of Forex trading, when you buy a cryptocurrency, it does not generate any cash flow.
So, for you to make money, there has to be someone in the future who agrees to pay more money for it than you gave.
For this reason, such investments are only seen as speculations, not investments in the true sense of the word, by many financial experts.
On the other hand, we can’t help but notice the fabulous returns made by some of those who have bet on virtual currencies in these two years since their price has been rising.
Below we will show you the pros and cons of investing in cryptocurrencies.
Advantages and disadvantages of investing in Cryptocurrencies
You make money. There is a good chance that you will get substantial profits from cryptocurrency investments, which are much higher than in the case of stocks.
Get rid of cash. You no longer have to carry a wallet of physical money with you; you only need a mobile phone to access crypto.
Increased security. As the blockchain through which you purchased the cryptocurrency cannot be rebuilt, you can be sure that no one can steal your currency from your account.
Security for the future. If cryptocurrencies become the currency of the future, you will be insured.
High price fluctuation. The future is still uncertain. No one can say exactly how the crypto market will evolve. Yes, it is very popular at the moment, but we do not guarantee that next year the demand will be as high and the prices will remain as high.
They are not insured. A bad part of cryptocurrencies is that any asset does not secure them. At least the shares are estimated based on the market value of a company, while the price of coins is given strictly by market demand.