Is Cryptocurrency A Good Investment :- Cryptocurrency is intangible assets (if you hold) that cannot be touched, or seen in the physical sense; however, are recorded in your name to buy luxurious goods and services. It is a digital currency based on a decentralized system; there’s nothing like centralizing its issuing like other currencies.
The word crypto has been taken from encryption: the nature of cryptocurrency – it’s anonymous and can only be shared with a cryptography system.
Other than this, cryptocurrency is the biggest game that people have not been able to decode till today.
The word crypto was coined in 2009 when Bitcoin was the first coin people heard of. After that, a lot of others came, having the same features.
How does crypto currency work?
It works anonymously; having secret knowledge of how it goes up and down with indefinite time.
There is nothing like reliable and perfect research came to remove the curtain behind this currency game.
However, crypto is government-approved and is accepted by most investors, traders, and by investment agencies.
Moreover, rather than being a private one, it works on the Blockchain system; a public ledger.
Is cryptocurrency a good investment?
With the hype of cryptocurrency and many achieving and losing their money through crypto regularly, this question is valid – is cryptocurrency a good investment?
Well, whether crypto would be good enough or not is dependent more upon you being capable of handling the risks, the timeframe you have, and how flexible your approach is, in terms of investing.
Crypto is highly volatile, meaning it could make you earn a remarkable figure; however, can scratch you down at another moment.
This, undoubtedly, could be more thoughtful when you want to start your crypto journey.
In conclusion, the risk is high, the return is not certain, and the graph of Bitcoin is not stable; there’s a lack of information about how it works.
Some popular cryptocurrencies
Below mentioned are the popular and mostly invested in crypto coins:
- Bitcoin:
It was launched in 2009 and is having the tag of the first cryptocurrency. It is the most recognized and used cryptocurrency so far.
Satoshi Nakamoto was the person behind the creation of Bitcoin. However, the identity of this person is still anonymous.
- Litecoin:
It’s another name added to the cryptocurrency. It has developed very quickly in the past few years, letting users transfer faster.
- Ripple:
It was founded in 2012 and is a distributed ledger system. It is conglomerated with various banks and financial institutes and is used to track transactions of various kinds.
- Ethereum:
After Bitcoin, Ethereum, also known as Ether is the second most popular cryptocurrency. It has a similar buzz to Bitcoin among the people. It’s a blockchain platform and it has its own currency.
Investing in cryptocurrency for beginners
For those investors who are finding their way to start buying and selling cryptocurrency, it’s a needful act to go through the ‘Go-to steps’ for them.
Since cryptocurrency is highly volatile and anonymous, it needs to have a decent path to walk upon.
We have listed a ‘Go to Guide’ to make investing in crypto easy.
Step 1: Select a platform to start:
The primary action is to choose the platform to start your buying process first. You can have two major choices for that:
- Crypto Exchanges:
You will find innumerable cryptocurrency exchanges. These are providing storage, different cryptocurrency, and interest-bearing accounts.
- Traditional brokers:
It’s an online broker, who educates on buying and selling cryptocurrency, stocks, and other financial assets. It’s known for providing fewer features in crypto, though.
Step 2: Account funding
The second remains to fund your account to buy different cryptocurrencies. However, a lot of crypto exchange helps in buying crypto using debit or credit cards.
On the other side, many are there which accept ACH transfers and wire transfers to buy crypto. However, in this, the time varies for withdrawal or deposit.
Step 3: Time to place order:
After that, it’s time to order or buy your crypto using either from broker’s site or mobile application.
In this, you need to choose to buy option>then the order type, enter the amount and lastly confirm it.
How to store cryptocurrency?
Since cryptocurrencies are highly risky and not foul-proof, it becomes an issue to protect them.
However, luckily, we have a crypto wallet available in both online and offline modes, securing the key to your cryptocurrencies.
Additionally, most of the platforms offer protection wallet; however, many don’t.
As a result, people look out for trustable sources to keep currency secured.
Generally, there are two terms used in this sense: Hot wallet and Cold wallet.
Cold wallets: These are also coined as hard wallets. They are physical lockers to help keep protected your private keys.
Hot wallets: These are online facilities for keeping your private keys safe and secured. This happens with the help of dedicated software made to protect your currency.
What can you buy with cryptocurrency?
Cryptocurrencies are flexible enough and available to purchase normal as well as luxurious goods; however, the acceptance of currency is an important concern with most sellers.
Along with that, one can invest money using cryptocurrency. A lot of people use their crypto for buying their cars, valuable goods, and so many other things as well.
In the End:
Cryptocurrency is the newly-emerged concept of investing money and earning out of imagination. However, that doesn’t always work that way, which is why a lot of people ask Is cryptocurrency a good investment?
To know it well, reading this post is a must.