Is Cryptocurrency a Good Investment? Should I Invest in It?

Wealth creation is a stubborn process that takes ages and informed planning. You must have patience and extensive knowledge about money to become wealthy. However, cryptocurrency has reversed the entire algorithm of becoming rich and owning a luxurious life due to the unorthodox money market of crypto. 

Among cryptocurrencies, Bitcoin is the pioneer of all crypto coins with massive price and value. Once, experts predicted that a single Bitcoin would help you buy a Buggati. Well, it didn’t happen! But Bitcoin is at the top of all cryptocurrencies, and its access is a nightmare for almost everybody. 

One recurring question is, “Is Cryptocurrency a Good Investment?” This article is a guide answer to this question, followed by many others. Thus, at the end of this guide, you will understand crypto’s  importance alongside its associated risks. Additionally, you will have a clear mindset on what coins to put your money in and what to avoid. 

Also read: The Final Countdown — Big Eyes to End Presale on 3rd June — Are Dogecoin and Shiba Inu in Danger?

Cryptocurrency – A Risky Yet Lucrative Investment

If you are someone who keeps up with the market trends, the name “Cryptocurrency” will flash a few things in your mind. For instance, you will think of market crashes, price fluctuation, bankruptcy, etc., when you hear about cryptocurrency. However, some people always reflect wealth, luxury, highest ROI, etc., when they hear cryptocurrency. 

The reason is different exposure to a single financial system that may make you a filthy rich or bankrupt person. The phenomenon lies in how you use your money to invest in cryptocurrency. In other words, it is the same revolutionary financial system, but you can also become filthy rich with the right method and planning. 

However, you must understand that cryptocurrency must be taken as a diversifying investment asset. Simply put, you can’t invest full-time in cryptocurrency, including Bitcoin or some best Altcoin. The reason is various risks connected to crypto. But having a flair for cryptocurrency in your investment routine is fun and a money-making hobby.

Risks with Cryptocurrency

You must understand a few risks of investing in cryptocurrency. This way, you can minimise the risks when you invest in it. 

1. Cyber Threats

It refers to the hacking and data theft threats that remain active with crypto wallets. Cryptocurrency must be kept in physical or digital storage, called a wallet. An example of a crypto wallet is CoinGate. You can store your bought crypto assets in such wallets. 

However, hackers may access such information, taking away your investment portfolio. On the other hand, you can store your crypto assets in physical or hardware wallets. Be mindful that you can never compromise on your unique key to the wallet. Otherwise, you will never access your crypto assets. 

2. Fierce Competition

Cryptocurrency is built on blockchain technology. Many users create projects on blockchain, making it a highly competitive platform. It is another debate whether all these projects succeed or not. But, the fierce competition itself is a tiresome challenge for crypto investors. 

3. State Regulation Threats

Another challenge is from the states directly. Sometimes, they bring up a law and regulation that bans a specific cryptocurrency or wallet within a particular region. It leads to the loss of cryptocurrency since it is a decentralised financial system with no banks or institutions regulating your assets. 

Benefits of Investing in Cryptocurrency

Cryptocurrency is a long-term financial system that will stay for longer. However, for some people, it may be a risky investment, but others believe in its perks. Therefore, you must know about crypto’s benefits to its users and investors. 

1. Independent Currency

Decentralisation is the core process leading to the creation of cryptocurrency. Thus, crypto is independent of any central bank or government organisation. It makes crypto a transparent financial asset that you can overview. Thus, the cryptocurrency of any kind is a secure and reliable asset. 

2. Accessibility

Cryptocurrency is not a fiat financial system, making it an accessible option. You can access your entire crypto portfolio via wallet or crypto exchanges with a stable internet connection. 

3. Fast on Speed, Slow with Fees

Crypto transactions are faster due to their foundation in blockchain technology. This technology is faster with minimal effort. Therefore, cryptocurrency’s transaction fees are the lowest despite making transactions worldwide. Therefore, cryptocurrency can offer you a plethora of options in the future when it becomes mainstream for trading and retail options. 

Should I Invest in Cryptocurrency?

Investing in cryptocurrency is a way to diversify your investment portfolio. This diversification will benefit you in the long run. Investing in Bitcoin or altcoin may seem risky, but you may exploit these associated risks for your benefit. For instance, the market fluctuation may scare some people, but you can take it as a signal that people love to invest in crypto, fluctuating its price.

Further on, investing in cryptocurrency will give you an edge over others in the future. Since many businesses and organisations opt to trade cryptocurrency, its use will soon become mainstream. Thus, having crypto in your investment portfolio will take your wealth game to the next level. 

Frequently Asked Questions

What Is the Best Cryptocurrency for Investment in 2023?

Many cryptocurrencies are available today, potentially providing you with a high return on investment. However, the best one that seems to boom in the coming future even further is Ethereum. It is the second-best cryptocurrency after Bitcoin. But, the way Ethereum is making progress, it is the best option for investment in 2023. 

Can Cryptocurrency Make You Rich?

Yes, cryptocurrency can make you rich due to its lucrative nature and instant payback. However, you must do in-depth research about a crypto coin before you invest in it. This way, you will have a sustainable future in the crypto market. Otherwise, cryptocurrency can also bankrupt you!

What Cryptocurrency Has Fewer Risks?

Though cryptocurrency comes with certain risks due to DeFi’s nature and cloud-based existence, a type of cryptocurrency can be less risky. The type of cryptocurrency with fewer risks associated is Stablecoin. Many examples of Stablecoin are prominent today; A few of them are Tether (USDT), USD Coin (USDC), Binance USD (BUSD), etc.