Everyone wants financial stability, and intelligent people know the recommended practice of having multiple sources of income. In addition to work, passive income is needed, and this is where investments appear.
Today, only someone who is lazy doesn't know about cryptocurrency. NFT, Bitcoin, and Ethereum are all commonly discussed in traditional media. Different opinions are expressed in society regarding the future of paper money: some people believe it is nearing an end, while others believe it has two to three years left. How can you understand the value of investing in cryptocurrency, and whether it's appropriate for you? To comprehend, read the article to the end.
✅ Pros of investing in cryptocurrency
Let's discuss the beneficial aspects.
1. Availability.
Do you have internet access? Congratulations, you are considered a potential investor in cryptocurrency. From a Texas 11th grader to your grandfather who lived in the village, anyone is capable of purchasing digital assets.
2. Profitability.
Think about the difference in the value of BTC over the past decade (2013-2023). In 2013, Bitcoin was already recognized as a legitimate currency and had a value of $1,000. In 2023, it was almost $23,000. For a brief period, the increase was 2.200%, and if you successfully sold your home on the high street for $68,000, then no further comments will be necessary. You're overly rich.
3. A growing industry that is developing quickly.
Cryptocurrency is a fledgling industry. It's simply establishing its location, but many experts believe that it will have a future.
“I believe Bitcoin is the first potential form of digital currency that could change the world”, as said by Peter Thiel, the co-founder of PayPal.
Over the course of 10 years, cryptocurrency has evolved from something that was "incomprehensible" to a currency that can be used online and offline (stores, restaurants, etc.).
⛔️ Cons of investing in cryptocurrency
However, there is another side.
1. Volatility
Yes, cryptocurrency can yield significant profits, but it can also lead to significant loss. In 2021, you could buy Ether for $3,000, and by 2022, its cost was $1,000.
Digital assets are susceptible to change (except for stablecoins), so remember:
1) Only invest the funds you can afford to lose.
2) Research, research and research again.
The outcome of your crypto investments is solely dependent on you, so understand the nature of a specific asset first, and then invest.
2. Fraud
Yes, you can be defrauded anywhere. For this, it is not necessary to discuss cryptocurrency, but this field has its own unique characteristic. If you are victimized by the internet, and money starts leaking out of your account, the bank is capable of returning it to you. If you are defrauded online and your cryptocurrency is lost, you will simply perish. You must take sole responsibility for your digital goods. This is why there are numerous scammers, and this is why it's important to be more cautious.
Where to start: tips for beginners
If you choose to comprehend the issue, then here are several tips for you.
1. Research.
Know what cryptocurrency is, the different types of cryptocurrency, and the basic principles of blockchain. YouTube videos (the guys from Incrypted) or helpful articles (like the one you're currently reading) will assist you.
2. Select an objective.
What is the reason for you to need cryptocurrency? Is it passive income, or would you like to do it professionally? How much money and energy can you commit to this?
Through these inquiries, you'll understand what direction to choose.
3. Select a platform that is practical for you.
Where you'll buy cryptocurrency, as well as where you'll store it, is crucial, because only you have the responsibility of safety.
For those who are new to the crypto, we suggest the Kolo cryptocurrency wallet. This is a practical wallet that possesses the most essential functions: exchanges, withdrawals, transfers. It's simple to use, has low fees, and supports multiple currencies: BTC, ETH, LTC, USDT, and other varieties.
Conclusion
We can't take the initiative of making decisions for you, but we hope the article has provided you with the appropriate path. Select what you enjoy.
