Cryptocurrency is something a lot of people are interested in but are afraid they will lose money. It is a market in which you cannot be sure whether you will profit. Additionally, you need to know where you are putting your money. Yes, you can get rich off crypto and lose a lot of money.
Here, we look into cryptocurrency and whether it is worth the investment in 2023 and beyond.
Is It Safe?
Many things don’t make cryptocurrency safe. Furthermore, it is relatively new to the world so it is something that is still not adequately regulated. Additionally, one thing is that exchanges are vulnerable to cyber-attacks and hundreds of different cryptocurrencies out there. Many questions are asked about cryptocurrency. It has led to a lot of governments questioning this cyber currency.
What Are The Risks Of Cryptocurrency?
Once upon a time, stock exchanges were known for cyber attacks and being hacked into. Now, cryptocurrency seems to be more susceptible to these types of attacks. The vulnerability of cryptocurrency has led to millions of pounds lost.
If you want to invest in anything that is relatively secure then stocks will be your best bet as these are regulated. Cryptocurrency is not regulated therefore, it leads to more of a risk. Nonetheless, many cryptocurrency exchanges exist that make trading a lot easier. One of those is coin base which is probably the most popular. Some of the most popular cryptocurrencies are on this site which is why it is so popular.
Despite many people preferring those platforms such as Coinbase, there are some negatives. For example, Coinbase can freeze assets if a government has requested it. Another thing that could happen is the exchange could go bust, leading to losing your assets. The chances of this happening with Coinbase are small however, you should never get too complacent with your assets. Again, if this happens, investment fraud lawyers might be able to help although it isn’t guaranteed.
Something that hardcore cryptocurrency owners do is store their assets in hardware wallets, also known as “cold storage”. Moreover, “cold storage” also has its issues. For example, to access your cold storage, you need a private key. If you lose this private key, you will be locked out of your storage unit.
One of the most significant issues with cryptocurrency is that there are no guarantees you will gain. There is every chance that you could lose. Few cryptocurrencies will succeed in the market as it stands.
Is Cryptocurrency Still Common?
Despite the crypto crash this year, cryptocurrency is still common. Many news broadcasters are keeping up with the latest news. Many people are talking about crypto on the internet, especially on Twitter. Reddit is another platform for users to discuss the news of crypto.
You could say that cryptocurrency is more popular than ever, with companies directly promoting the cyber currency. Block, Tesla, and PayPal are all linked with cryptocurrency. Tesla is one of the biggest companies in the world and they announced that they purchased $1.5 billion worth of Bitcoin.
Is It a Good Long-Term Investment?
It is still an ongoing debate about crypto and whether or not it is a long-term investment. Both bitcoin and Ethereum have grown massively since they first launched. There have been a few cryptos crashes along the way but they seem to have restored their value. Whenever the crypto market crashes, people see this as a good time to invest because they know it will return. The past few times the market has crashed, both bitcoin and Ethereum have managed to get back to their original value and increased.
There are a lot of people out there that own Bitcoin. It is the most common and is one that businesses are investing in. Furthermore, there are other cryptocurrencies out there that people invest in; however, Bitcoin is one that people are most comfortable with. It is the first global currency and is something recognised by many countries around the world.
Ethereum is another well-known cryptocurrency that is becoming more common in the news. Nevertheless, the value of Ethereum is much lower than Bitcoin although there is no reason it can’t reach the numbers that Bitcoin has. The more established cryptocurrency becomes, the more Ethereum will become, which makes it a good long-term investment. Nonetheless, investing in crypto is still a massive risk financially.
Earning interest on crypto
For all the risks, there is no doubt that the risk to reward ratio with crypto is high. That is, if you take a chance and invest in crypto when it looks rough, you can potentially stand to make a lot of money in the long run.
Some platforms such as Nexo even allow you to earn interest on any of your crypto holdings while you wait for your investment to come in. In fact, Nexo offers incredible returns of up to 20% or more on some crypto projects.
Even earning interest on standard GBP or USD is better with Nexo, with an 8% interest rate. Try and get that on the high street!
We highly recommend signing up for Nexo if you’re open to investing in crypto, or even if you just want to store your Sterling or Dollars and earn a higher interest rate.
As you can see, there are many issues with cryptocurrencies. Furthermore, you could argue there are more negatives than positives. It is a gamble to invest in cryptocurrency, just like it is with the stock market. If you are willing to take that risk then do it. However, ensure that you invest in this at the right time.