Cryptocurrency has received a lot of media fare since its inception, and as a fairly recent way to invest and make money, people have been debating back and forth whether or not it’s a good idea. When it comes down to it, many people have lost a lot of money on the blockchain, but many people have made thousands (and even millions) trading cryptocurrency back and forth.
Let’s go over the main pro and the main con of investing in cryptocurrency below.
The Value of Cryptocurrency Is Volatile
Cryptocurrency is well known for being volatile, in terms of how much it’s worth and how much the market can fluctuate. Many currencies can drop hundreds or thousands of dollars in just a couple of hours, and then rise by double that amount in the next few hours. It can be hard to keep track of how much your currency is worth, when you’re trading in it, and if you’ll ever be able to make a profit in the future with it.
Investing in cryptocurrency comes with considerable risks. For example, back in 2017, Bitcoin was at an all time high, but just a year later, Bitcoin had dropped to not even a quarter of it’s price in the previous 12 months. Are odds such as these worth your time and money?
Cryptocurrency Could Be Worth a Lot of Money
Of course, on the other side of this, the sheer volatility of cryptocurrency could very well mean it’s worth a lot of money at any point, and could be in the future as well. With traditional investment, it’s all about being able to choose the right stock to invest in – something that’s worth money, when you can buy low and sell high.
Cryptocurrency can be treated in a similar manner, especially thanks to the modern, digital age we live in. Being able to use cryptocurrency exchanges from the comfort of your own desktop, such as right here, and keeping an eye on the blockchain in real time, makes cryptocurrency extremely accessible as well. That alone makes it worth money, thanks to all the people who are currently trading it, and will be in the future as well.
It’s Up to You
If you’re interested in buying a digital wallet and getting onto an exchange yourself, it’s important you know the strengths and weaknesses involved, especially if you’re planning for the future, and whether to consider it as a part of your estate plan.If you are considering this, or making a cryptocurrency investment into a family trust, you may wish to check out this great guide here to learn more about what this process entails.
Indeed, it’s said that 2020 could be a prime year for investing in cryptocurrencies, but of course, this is hard to predict, and impossible to know for sure, so be prepared to operate at a loss for the foreseeable future.
Your chances of making money off of cryptocurrencies are up in the air; only you can say if it’ll be worth it.
