Clues before investing in cryptocurrency

Cryptocurrencies are digital assets people use as means of purchasing goods and services online.

Posted  476 Views updated 2 years ago

Investing in cryptocurrency is similar to exchanging your local currency for a currency of a thriving economy. This time they are digital money called cryptocurrency. Some popular cryptos around are Bitcoin, Ethereum, Litecoin, Tron and Tether and so on.

WHAT IS CRYPTOCURRENCY?

Cryptocurrencies are digital assets people use as means of purchasing goods and services online. To get some cryptos one must exchange their local currency through and exchanger for some coin or tokens of a particular cryptocurrency. So basically, it's a digital trade tool like our physical money.

The earliest cryptocurrency was Bitcoin, created in 2009 by an unknown person who goes by the name Satoshi Nakamoto, and while Bitcoin still exists. many other cryptos have joined the race.

LOOK BEFORE YOU LEAP!

So before you part ways with some of your physical currency for some crypto coins, below are few things to consider.

1. Cryptocurrencies return on investment cannot be proven

This medium of transacting fluctuats a lot; sometimes there's a rise and many other times there's a fall, and sometimes over a long period of time you might reap some huge benefits. There's simply no guarantees, but the tales of people who bought bitcoin in the early years has created a gold-mine rush.

2. Cryptocurrencies promote anonymous transactions

People who want to remain anonymous and avoid regulation from banks or the government will use cryptocurrencies to make shady deals on the black market. Money laundering is also a problem in the crypto world. Now hear me on this: I’m not saying that everyone who uses cryptocurrency is a bad person. But I am saying that if someone wants to commit criminal activity and avoid being tracked, the crypto world is an ideal place for them.   

3. A gamble

Investing in cryptocurrency is a gamble as one is never sure when the breakthrough will come. Hence even using it as a saving medium for a future project may be a regretable gamble. in 2017 Bitcoin surged high from $900 to $20,000; today as at this writing, Bitcoin fluctuates between $11,000 and $12,000... So imagine those who purchased when it was say $14,000, the losses lingers.

4. Consider smaller coins

so many seem to go for the smaller coin. you can purchase a small coin like Tron with the price of a burger, some money you can give to a beggar then sit back and watch, good luck anyway.


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