Should You Invest In Cryptocurrency?

After a significant fall in the entire cryptocurrency market in the previous few days again the same questions are trending “Should I Invest In Cryptocurrency? Are they safe?….”

To be honest my counter-question will be “Why should I not invest in cryptocurrency?” So let’s understand both sides of the coin and then decide which one is better and actually what makes it more worthy.

Should you invest Yes? or No?

Why should you invest in Cryptocurrency?

1. It is providing you with the chance to be a part of a revolution that will entirely change the way we normally used to make transitions.
2. You can buy and sell any of the cryptocurrencies 24*7. This means there are no breaks, no holidays as well as no time boundary. This beauty of the crypto industry makes it very different and unique as almost all other investment assets have a working time boundary as well as various regulations which makes buying, selling and even receiving the amount from selling a very hard thing and in some cases even time taking.
3. It is decentralized which means no single person/entity/government can have entire control compared to the government handing the entire traditional currency market and taking steps that may or may not favour the stakeholders.
4. You can even use cryptocurrency for making international transitions and end up saving a significant amount as transition fees which might have been charged by the traditional banks for the same case.

Example: I am living in India and I want to send some money to my brother/relative/anyone in yhe USA now rather than going through the traditional way which will not only take more time but also charge heavy fees what I can do is buy a stable coin and send it to the recipient and now he/she can sell it and cash out the money. This way I will end up saving time as well as a large portion of transition fees.

5. Cryptocurrency market is getting attraction whether it’s positive or negative isn’t the topic but due to this new investors are making small investments and getting educated in this new field to increase their portfolio size.

So it’s clear that as the demand and adaptation will increase there will be an increase in the prices which will directly be beneficial to early-stage investors.

I think these are enough points for the positive side and now we can move on to the other side which is the negative/dark side of cryptocurrency investments.

Why should you avoid investing in cryptocurrency?

1. The main reason is high volatility in the crypto market. When you enter into the crypto market a change of 5–10% in a day should be your new normal as it’s the most volatile investment asset else it’s not your cup of tea. Due to high changes in prices many investors end up losing rather than acquiring expected huge gains.
2. No asset is blocked/backed up behind most of the cryptocurrency coins thus there is a high chance that you may end up losing the entire amount which you had invested.

Example: The most recent case of such an incident is Squid Game coin where investors ended up losing the entire investment as it was a big scam and had no ground solid technology as well as asset backup running at its back.

3. If you have kept your cryptocurrency holding in the wallet of the crypto exchange from where you had bought then there is a chance that your crypto holding may be stolen in case the crypto exchange faces an attack from hackers.

Example: Back in 2019 one of the biggest crypto exchange “Binance” faced an attack from hackers in which users lost almost $40 Million worth of cryptocurrency mainly bitcoin which was in their wallets ( also called as hot wallet ). Although exchange said they will bear the entire loss and users will get back their entire stake.

4. After seeing an unbelievable gain of 310000% ( Squid Coin ) and other such meme coins when you are investing blinding in these kinds of coins there is a high probability that you may end up getting poorer rather than a millionaire, billionaire or trillionaire ( I hope this word exists😅 )

5. If you are investing a considerable amount in cryptocurrency and then one day you may find out that your government is banning these currencies then it may hit you with a handsome amount of money.

So we are done here with the comparison part of both sides and now comes my recommendation part in which I would like to share my perspective in the entire scenario.

My Recommendation

I have been observing the crypto market for a long time but I actually started investing just a few months ago. In this time frame what I felt is that it's a fantastic opportunity to grab and take a share out for the future but we also need to take proper precautions while making financial bets. We shouldn’t be investing just because we are seeing others getting high profits and returns as when there is a huge upside there always is a hidden huge downside too.

Always remember that before investing the hard-earned money we need to carry out our research and do check out the white papers, community response,… and never invest blindfolded.

I do have a ton of things to say but let’s keep them for the next article. I hope that you might have surely enjoyed reading the article and thus I would be delighted if you just spare a moment to subscribe to me so that you can receive a notification whenever I publish a new article along with that clap and your valuable comment will be a cherry on top of the cake.

Till the next article comes out I will be missing you as the most precious reader. Signing Off “With Love Umang Thakkar”