Is Cryptocurrency A Good Investment Option?
Introduction
When it comes to investing in cryptocurrency, a lot of financial advisors have conflicting views. Investments made in major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, etc. have their respective pros and cons, particularly due to the uncertainty associated with them. Because of the high volatility of the cryptocurrency market and risk of cyber thefts, there is no definite answer as to why you should or shouldn’t invest in cryptocurrency. In this blog, we will discuss the arguments in favor and against cryptocurrency investments.
Why consider cryptocurrencies as an investment option anyway?
Like the uncertainty associated with them, the benefits of investing in cryptocurrency are many:
1. The Profit Potential:The cryptocurrency market has always been highly volatile in nature. Since its inception, the price of Bitcoin has been fluctuating drastically. However, this fluctuation is what makes it such a profitable investment. If the investments are made at the right time, they can get you returns far greater than traditional investment instruments.
2. The Future Medium of Exchange –Though cryptocurrencies are in infancy and their adoption is quite low. They are here to stay for sure since many countries and industrialists have trusted and invested in them.They could very well go on to become a mainstream medium of exchange in the future,making them a promising long-term investment.
3. Hyperinflation –History has witnessed numerous conventional forms of paper currencies.Almost all these currencies have faced the wrath of hyperinflation caused due to overprinting. This, however, can never be the case with cryptocurrency. There are a strict set of mathematical rules and algorithms that determine the minting of the coins. The process is transparent and the information is public.
A word of caution…
Before making an investment in cryptocurrencies, you must consider the below mentioned points:
- Unpredictable Market Uncertainties: The prices of certain cryptocurrencies can swing to a level where you could be a millionaire one day while on the other you would be hard-pressed on counting your losses. Let’s take the example of Bitcoin. It was worth next-to-nothing in 2013. However, in 2017, the price of Bitcoin quadrupled from what it was a year ago. In 2018, the price of Bitcoin started falling again to the extent where people lost thousands of dollars.
2. No Guarantee of Future Availability: Even though they look promising right now, there are no guarantees many of the cryptocurrencies will still be available in the future. This holds true in the case of many Alt coins and Tokens distributed via ICOs.Many of them have vanished from the market in a matter of days and sometimes even hours.
3. Bad for Investors with Lower Risk Tolerance:Cryptocurrencies are more disadvantageous to those people who have a lower risk tolerance. Such people are usually prone to sell off their stakes as soon as the market dips. The cryptocurrency investors need to have a steady mindset and patience. They should be able to hold the investment even if the market goes down.
Conclusion
Inspite of the risks associated with it, cryptocurrency is perhaps one of the most exciting investment avenues of the current century. Built on the constantly-developing Blockchain technology, the decentralized digital currency is here-to-stay, one way or other. Though there are many reasons which could excite you in investing,you shouldn’t funnel your entire life savings before studying the cryptocurrency market. It is wise to start by investing a small sum of money and then expand as per your comfort level.
Platon Finance is educating non-crypto investors so they can benefit from this lucrative investment option and at the same time, reduce the risk from the market fluctuations by taking calculated and educated risks.
The Platon Club is the heart of the ecosystem that helps investors right from the initial stages of getting educated on different cryptos and Blockchain, to making the sound investment decisions. The investors’ funds are further safeguarded by the Symantec’s security and insured for USD 500K by Lloyd’s Syndicate, both are strong business partners of Platon Finance. The platform further enables users of PlatonCoin to buy properties from OPISAS and other offline/online retailers.
Important Links -
Website — https://platonfinance.com
Pitchdeck — https://platonfinance.com/assets/docs/pitchdeck/PF-pitch-deck-EN.pdf
Telegram — https://t.me/platonfinance_official
