Cryptocurrency is where all the ‘cool kids’ have been investing their money off-late. The easy access, low transaction fees, 0 interference from the government and of course the skyrocketing value have made this digital currency gain momentum and how!
The flip side to this is the lack of or little regulation, cyber theft, fraud, financial loss and volatility. However, here’s the good news, the rewards of investing in crypto far outdo the risks.
Let us tell you how!
Did you know? Crypto prices have shot up massively in the last 12 months. The price of bitcoin has risen by almost 400% than it was a year ago. Some coins have even seen a 7000% increase – sounds too crazy to be true? Well, it is.
Volatile market – Boon or bane?
Firstly, there is the risk of a fluctuating and volatile market. Prices are constantly scintillating back and forth. This, however, is where the opportunity lies. Because when cryptocurrency prices begin to rise, there is no turning back.
These bullish returns are rarely found in other investment plans. If you are vigilant about keeping an eye on the market and know when to pull out VS invest more, the long term gains far outweigh the risks. The profit you can earn in a short period of time is much more than in any other traditional form of investment.
Regulation and security
The lack of regulation of cryptocurrency may sound tricky but it is also why this investment is not taxed and is so enticing. Every transaction is not recorded by the bank, which gives you a lot of flexibility and freedom.
There is a lot of worry about crypto transactions being vulnerable to cyber theft, hackers and the like. A crypto transaction cannot be reversed. It is encrypted and hence protected from hackers and other threats.
Accessibility and ease of use/transfer
With mobile apps and web software, it is ultra-easy to buy a cryptocurrency and even transact. You can do this on the go and never lose out. Even internationally. This is often a challenge when it comes to dealing with more traditional methods of trading, especially in large sums.
Cash and card transactions are always recorded by the bank. This isn’t the case with crypto. Each transaction is unique and your privacy is protected. In each case, you can negotiate and agree to the terms. Further, the switch occurs via “push” and, as such, you will be able to give the recipient just what you want them to see – nothing more.
Unlike the traditional system that exposes your information at every point in the transaction chain, saving your financial history safeguards you from the threat of account or identity theft.
Low transaction fee
Banks usually have transaction fees that can increase to large amounts if you make a lot of transactions. When it comes to crypto, the transaction fee is very low or doesn’t exist at all. This is a saving right on your investment at the source!