Day after day more people are getting into cryptocurrency investment. It is primarily because of the returns the market generates. With the right strategy, people are making exponentially growing returns, and it is because of this reason people are planning to invest in cryptocurrencies more. However, the picture is not all glory. You should also know what the downsides of investing in cryptocurrency are. Based on this, you can prepare a strategy that will give you profitable results. Make sure the cryptocurrency you’ve selected to invest in is a reliable platform by visiting www.btc-newstrader.com.
Why should you invest in cryptocurrency?
- If you want good gains:
The first reason you should consider investing in cryptocurrency is when you are looking for profitable outcomes. All the cryptocurrency market has risk associated with it, but we can’t undermine the fact that the returns are rewarding. If you also believe this, you would be interested to put your money into it. There are several new additions and developments taking place in this domain, like the growing acceptance of bitcoin, the development of proof of stake mechanism, the growth of smart contracts, and its penetration in different business segments. Everything shows the crypto market is on an expansion spree, and this indicates that this market is going to give you good games in the times to come.
- The excitement of new technology:
The technological advantages that cryptocurrencies offer are not deniable. With the decentralized manner of a transaction system that facilitates direct fund transfer to the safety, they provide their users all have managed to garner the attention of many individuals. This is not just limited to Millennials, but even big companies like Tesla, Facebook, Microsoft, Home Depot, Starbucks, and others have shown keenness in accepting cryptocurrency. It has also included many nations accepting bitcoin as its legal tender. This highlights that excitement around this technology is not going to settle down so soon. Therefore, it might be the perfect time to jump into the pool before the price rises again.
- The growing ROI:
Every investor wants goods to return on investment, and bitcoin and other crypto currencies proved to be a great option for this. We have already mentioned above that cryptocurrency investment gives you good returns. However, in some cases, the return might come in the long run. Hence you must have patience when it comes to investing in cryptocurrency and waiting for results. For example, in the case of bitcoin, the value had risen to the mark of dollar 65,000, although the value is presently taking a dip but, has remained steady for a few months. Since the market is at a lower stage right now, it is the right time for any individual who has a keenness to invest in cryptocurrency to jump into it. Also, many supporters believe that the cryptocurrency market will reach a mark of dollar 70,000.
What are the factors to be cautious about?
While there are certain perks to getting into the crypto market, we cannot undermine the fact that there are certain downsides of the same. Here are a few of them:
- Uncertainty of the cryptos:
One of the first reasons people are cautious about cryptocurrency is because of its uncertain 80. The market is highly vulnerable and volatile. The rumors around cryptocurrency can dramatically impact its value, and you can notice a dip in it. Hence, this market is not for those individuals who are only looking to gain profit and or are not ready to embrace the risk.
- Growing regulation and taxation:
Another concerning point about cryptocurrency is that there is growing regulation and taxation around cryptocurrencies. While it continues to grow and attract a lot of attention, we cannot ignore the fact that regulation and taxation are being imposed on it. What is ample in countries like Australia, Canada, and the USA, cryptocurrency transaction has been put under the commodity section, which makes it prone to taxation. Similarly, in India, tedious has been imposed on cryptocurrency transactions. This also impacts the value of the cryptocurrency. Some also believe that the addition of such regulation and governance may take away an important feature of a cryptocurrency, and that is its freedom to operate without third-party intervention.
Wrapping it up!
This was a brief discussion of the advantages and risks associated with cryptocurrency investment. Therefore, to know more and strengthen your grip on crypto investment, read more.
»Advantages and points of caution of the crypto world«