Should I invest in Cryptocurrency?
Depending on your attitude to risk cryptocurrency might be a good investment for you. Especially if you have money going spare that you are willing to take a chance with then by all means take a gamble and invest in cryptocurrency. But remember it is exactly that a bit of a gamble!
However, the higher risk does mean you can earn high rates of interest on stablecoins and other types of cryptocurrency. It is an extremely volatile investment. For example, Bitcoin’s price was just under $67,000 a coin in November but by May this year it was less than half of that. But its worth noting that this crash might not last forever, if you are patient some think that eventually one coin will be worth millions. I guess only time will tell, I don’t have $29k to take a punt with.
Becoming More Widely Accepted
Cryptocurrency is becoming more mainstream all the time. Gucci stores plan to start accepting cryptocurrency in the US. Joining the likes of Microsoft, AT&T and Starbucks. The UK wants to see stablecoins recognized as a regular form of payment.
Personally, I haven’t braved cryptocurrency as an investment yet. Although my husband is extremely keen to give it a try. Well, he is torn between cryptocurrency and investing in scotch whisky!
I think I am weary because some countries have banned cryptocurrency altogether. It doesn’t give me confidence to venture into the digital asset market. But then I am very risk adverse and have even mentioned some of the risks of cryptocurrency on my blog before. But like Thomas Jefferson the 3rd US president once said, “With great risk comes great reward”. I do think that the concept of cryptocurrency is very intriguing.
The Big Winners
This article in the Independent mentions some of the big winners of cryptocurrency. This kind of articles would help sway me. One doctor who made $100 million dollars now lives very comfortably in a penthouse in Central Park East.
Despite this I think it is best to only invest in small amounts. If you do well then that’s fantastic but if you lose everything you haven’t blown your life savings. I think it pays to be cautious at the moment.
Get In There Early
The best way to make the most money is to join a cryptocurrency in the early stages. But you wouldn’t necessarily know for sure which ones would prove to be the biggest success story. By 2019 up to 1,000 digital currencies had failed.
But if you get it right, you could make a fortune. In April 2016 it was £310 for one bitcoin only six years later it was worth £24,000. Now I wish I had got in on that from the very beginning.
Finding A Greater Fool
Some say cryptocurrency is not a proper investment because you rely on a greater fool than yourself to pay more than you did. That being said with more places and financial institutions accepting cryptocurrency investors might be less skeptical.