Cryptocurrencies have been around for a few years now, and more and more people are starting to invest in them カヴァン・ チョクシ. By far the most popular cryptocurrency, Bitcoin has gained a lot of media attention lately. It gradually increased in price over time and reached its all-time high in December 2017 when it was valued at 20,089.00 US Dollars. The potential to make money with the rapid increase of cryptocurrencies is very attractive for investors. While they may seem like a great investment, there are a few things to consider before investing in crypto.
The Pros of Investing in Crypto
A few things make cryptocurrencies seem like an attractive investment for many people.
- High Price of Cryptocurrencies
Cryptocurrencies, such as Bitcoin and Ethereum, have rapidly increased in price over the past few years. This rapid increase (especially with Bitcoin) has made it one of the top choices for investors. According to Business Insider, Bitcoin increased in value by 1,800% in 2017. This amazing price growth makes cryptocurrencies seem like such an attractive investment to many people.
- High Volume of daily trading
Cryptocurrencies have become popular investments due to the high volume of daily trading on cryptocurrency exchanges. According to Forbes, more than 18 million Bitcoins are traded via cryptocurrency trading platforms in 24 hours. This high volume of trading shows that cryptocurrencies are here to stay and will continue to increase in price rapidly.
The Cons of Investing in Crypto
However, before investing in crypto, there are a few things to consider.
- Volatility of Cryptocurrencies
The price of cryptocurrencies can be very unstable due to their volatile nature. The value of Bitcoin may seem like it’s making the digital currency perfect for investment, but in reality, it’s not. This is because Bitcoins can lose value fast and can even lose up to 80% of their value within days. For example, in 2010, the price of Bitcoin fell from $32.00 per coin to $2.00 per coin, which is a loss of 94%. While this may seem like good news for investors who bought Bitcoins at a low price, it’s important to remember that the currency’s value continued to drop.
How to Invest in Crypto
If you’re interested in investing in cryptocurrencies, the first thing you need to do is set up an account on a cryptocurrency exchange. Many different exchanges worldwide allow people to buy and sell cryptocurrencies for real money.
The next step is to use your fiat currency to buy crypto by exchanging it with Bitcoin or Ethereum. A few exchanges allow people to do this, but it’s important to remember that the price of cryptocurrencies can change drastically in a short amount of time. This is why it’s essential for investors to always check cryptocurrency news before investing since the prices may be extremely volatile.
Conclusion
Investing in crypto can be a great way to make money, but a few things to consider before investing. Make sure you do your research and invest in a currency you believe in.