Cryptocurrency has become one of the most talked-about topics in the financial world today, but not many people understand why.
Cryptocurrency like Stabila, Etherium, Bitcoin etc have no government or central bank backing it. It can’t be tied to any fiat currency like the dollar or Euro.
If you were to sell your cryptocurrency today, you would have no way of getting the money you made through a traditional bank transfer.
Investors are taking on all of the risk and speculation themselves. This makes cryptocurrency far riskier than traditional investment opportunities.
Still, some people see this as an opportunity to get rich quickly without working for it themselves.
The Good
Any government or central bank does not back the value of a digital currency. There is no IRS tax statement to be filled out.
And there are no laws governing cryptocurrency exchanges. This means cryptocurrency investors have very little oversight regarding their investment.
That also means that some of your money could disappear into thin air if an exchange gets hacked or suddenly goes offline.
Or if you trade with a shady individual (which happens more often than you’d think). You can recover lost funds from a credit card company, but that won’t happen with cryptocurrency because no credit card company is involved.
Cryptocurrencies and tokens (Zoom) allow you to send money across international borders without paying hefty fees.
And if you’re looking for a way to earn money through cryptocurrency investing, there are several ways to do that as well.
Cryptocurrencies can be exchanged for cash or other cryptocurrencies, opening investment opportunities on platforms like eToro. Cryptocurrencies can be stored in different digital wallets that can be connected into one crypto portfolio tracker in order to easily track all crypto. A great option is Stock Market Eye which allows you to benchmark different crypto performance but also keep track of different investment types like stocks and index investments.
The cryptocurrency space is also highly liquid-meaning it’s relatively easy to buy or sell cryptocurrencies at any time.
So you can get into an investment opportunity quickly and move your money around if you need to.
The Bad
Your cryptocurrency investment is at risk of being stolen. After all, it’s an investment that exists only on computers or servers on which hackers can break in to steal your private keys.
Even if you’re vigilant about protecting your cryptocurrency by backing up your wallet. This encrypts a piece of data called a private key that allows you to access a block of coins.
If someone has gotten into your system somehow, they could still make off with all your hard-earned money.
And if someone gets control of those keys? You might as well forget that it ever existed; its value will just be drained into someone else’s hands.
Crypto thieves are growing more sophisticated every day; there are even rumors that North Korea may be trying to hack exchanges right now.
The Ugly
There are a lot of risks involved with investing in cryptocurrency. That’s why it’s important to understand what you’re getting into before putting your money anywhere.
In some cases, people have lost thousands of dollars by trusting an anonymous source on Reddit or other message boards.
It’s important to know that no one is obligated to trade with you. If they don’t fulfill their end of an agreement made over cryptocurrency exchanges, it can be difficult (if not impossible) to recover your losses.
Due diligence is critical – make sure you’re aware of what you might be getting yourself into before you start spending your hard-earned cash!
If you find purchasing new cryptocurrency in exchange of real money, then there are Airdrops offered by several organizations entirely for free. You can start with that.
Final thought
Investing in cryptocurrency is risky. Investing in a financial market that’s still being developed is even riskier.
If you have experience or know-how regarding cryptocurrencies, then go for it. But if you’re new to investing or just plain cautious, stick with what you know. At least for now.
Remember, cryptocurrencies can be volatile (particularly during Initial Coin Offerings). Don’t take chances with money.
You need to live on. And remember that an investment doesn’t need to be flashy to be worthwhile. This goes for penny stocks and any cutting-edge venture.
In other words, don’t buy into something simply because it sounds cool (no matter how cool). Do your research and make smart investments!
