Cryptocurrency investment is at a hike nowadays. Everyone is looking forward to investing in Crypto but many investors are still confused about whether they should invest their hard-earned money in such a volatile market or not. Obviously, the Crypto market is highly volatile and unpredictable but according to past trends, some of the cryptocurrencies like Bitcoin, ethereum, etc are performing great and people are gaining huge profits.
But no one can promise that these will continue to grow in the future. The crypto market volatility has given huge losses also to the people in past. So, keeping everything in mind, investors should research properly if their crypto investment is safe for them or not.
Here, we will discuss the cryptocurrency investment, its advantage, and advantages, etc which will help you make the decision.
Is cryptocurrency safe?
The cryptocurrencies run on blockchain technology which is a ledger run by the crypto miners. Bitcoin is said to be the most secure network in the world with 20 times the processing power of google servers.
If someone tries to hack a blockchain, he needs to simultaneously hack more than 51% of the miners which is nearly impossible. But cryptocurrency remains at the risk of hacking unless you save it at some hardware wallet.
But there are still many investors who see crypto investment as a short-term investment as they don’t want to take the risk on their money.
Although blockchain is very secure we cannot oversee the Huge Bitcoin dip in 2015 and how Bitcoin lost its 84% value in 2018.
Investing in Cryptocurrency
Most of the investors see cryptocurrency investment as a long-term investment as they plan to never sell off their cryptocurrency. They believe the crypto market will keep on growing and will beat the gold and fiat someday. But is it good to ignore the history where the crypto investors have lost more than 50% of their wealth due to a sudden drop in market trends?
Despite huge losses and ups and downs, Bitcoin has successfully maintained the highest valued cryptocurrency and provided huge profits to investors. According to predictions done by crypto experts like Binance or wallet, Bitcoin is going to grow a lot in the future.
Crypto as Short term Investment
The investors who believe in short-term investment don’t care about the utility of the currency, they only care about the price history of the coin. For example, many crypto investors invest in Dogecoin rather than Bitcoin despite knowing that Bitcoin has a more profiting future. But they prefer Dogecoin because of its high volatility where they can earn profit in short-term investment. Many Short term investors buy cryptocurrency during price surges only to get a quick profit.
Cryptocurrency as Long term investment
If you find blockchain technology reliable, then the cryptocurrencies like Bitcoin and ethereum are great options for long-term investment. But before stepping into a crypto long-term investment, make sure to understand which cryptocurrency is best for this purpose as there are more than 1000s of cryptocurrencies and each holds a different value. You must only invest in suitable crypto coins like Bitcoin.
Cryptocurrency investment is safe or not depending on how smartly you can invest in it. The more you research and consult the experts, the more profit you will gain. The unresearched investment will surely take you toward huge losses in this highly volatile market. Keep all the things in mind and then decide whether you should invest in Cryptocurrency or not.