Should I Invest In Cryptocurrency?
Now is the time to invest in cryptocurrency before it is too late. Hundreds of thousands of people are taking advantage of share prices at the entry level. One investor became a millionaire just 69 days after his initial investment.
There are so many types of cryptocurrency that are bringing in life-changing returns. Investing in cryptocurrency is a wild ride with big swings up and down. However, significant returns await if you remain patient and select quality cryptos.
Read on to help you decide whether to invest in cryptocurrency. Learn everything you need to know about crypto investing so you can start maximizing returns.
What Is Cryptocurrency?
Before investing in cryptocurrency, you should have a firm understanding of what it is. Cryptocurrency is a form of digital currency. It is intended to be a form of tender to pay for goods and services. However, there are significant differences between cryptocurrency and traditional forms of money. For starters, cryptocurrency is decentralized. There is no central bank or government entity that is behind cryptocurrency.
Cryptocurrencies also allow for secure and anonymous digital transactions. They do so by using a blockchain ledger. A blockchain ledger is an encrypted record of blocks of transactions. It includes important details like the transaction date and amount of transfer.
There are many different types of cryptocurrency. The original and most well-known cryptocurrency is Bitcoin. Due to Bitcoin’s popularity, many other altcoins are launching. As a result, there are now hundreds of different cryptocurrencies to consider investing in.
Should You Invest In Cryptocurrency?
The answer is a resounding yes if you understand the inherent risks. The cryptocurrency market is a lot more volatile than traditional stocks on the Dow Jones or S&P 500.
News events and speculation drive the share price for cryptos. In addition, memes and celebrity endorsements are known to drive temporary price spikes.
In April 2021, Dogecoin surged by 200% in a single day. During the week, it increased by nearly 600%. However, the price eventually cut in half from its record high.
While the cryptocurrency market is certainly volatile, it does have staying power. For instance, Bitcoin launched in 2009. It has now been traded for twelve years and is not going anywhere.
What Are The Returns For Cryptocurrency?
The return on investment (ROI) varies based on each type of cryptocurrency. This fact remains true for multiple reasons, including not all cryptos are launched simultaneously. The news cycle and social media hype drive upward and downward swings.
Now, we are going to take a look at some of the major cryptos. Continue reading for a brief breakdown of crypto returns:
Bitcoin
Bitcoin has the largest market capitalization of all cryptocurrencies. There is a supply cap on the number of bitcoins. There will never be more than 21 million bitcoins.
In 2017, you could purchase bitcoin for less than $1000. This year, it hit a record-high of nearly $65,000 per coin. Recently Bitcoin is valued at around $25,000.
There was incredible potential for returns over the past few years. For years, expert investors and businessmen like Warren Buffet or Jamie Dimon warned against Bitcoin. Instead, they claim it is a bubble and sure to pop.
However, Bitcoin is a sustainable investment. While steep drops exist, investors tend to buy low and prevent it from falling further.
Bitcoin becomes more legitimate each year. For example, professional athletes sign contracts in Bitcoin, and foreign governments accept it as an official form of tender.
There are bitcoin ATMs that allow you to buy and sell it conveniently. Bitcoin is not going anywhere and is a good investment opportunity at the right price.
Dogecoin
Dogecoin is another hot investment opportunity. What makes Dogecoin appealing to mainstream investors is that you can get it relatively cheaply. Dogecoin is currently trading at around 70 cents per coin.
In January 2021, you could have had Dogecoin for less than 1 cent per coin. However, less than five months later, Doge was trading for more than 72 cents per coin.
Dogecoin now has some major institutional backers. Billionaires such as Elon Musk and Mark Cuban are proponents of Doge.
Ethereum
Ethereum is one of the major players in the cryptocurrency space. It currently has a market capitalization of over $190 billion. This cryptocurrency has been trading for over nine years, steadily increasing its trading volume.
Litecoin
Several altcoins were launched in a bid to replicate Bitcoin’s success. Litecoin was one of those and has also experienced tremendous ROI. Six years ago, you could purchase Litecoin for less than $2 per share. Now, Litecoin’s market capitalization is currently over $5 billion.
Are Cryptocurrencies A Good Investment?
Advocates of cryptocurrency are reveling in massive returns. Those who got in a couple of years ago revel in life-changing returns. The big question is whether there is more juice in the squeeze. Are cryptocurrencies going to rise even further, or have they peaked out?
The answer depends on how major companies and world governments react to crypto’s rise. It adds legitimacy when companies like Tesla start accepting crypto as a currency. Moves like this give crypto staying power and make the trading prices more sustainable. However, if you invest in cryptocurrency, prepare for some wild rides. While the spikes are enticing, cryptos are also known for dramatic declines. However, as long as you are patient, you should ride them out and return to positive territory.
Cryptocurrencies Are A Potential Investment Opportunity
It is abundantly clear that cryptos yield significant returns. Whether you make a great return or not depends on what price you get in at.
Accepting the risk of a significant decline when you get in is essential. So, if you enjoyed this article about whether to invest in cryptocurrency, check our locations to start buying and selling today.
