Is Bitcoin a Good Investment?
You can get rich investing in Bitcoin and Altcoins. However, cryptocurrency is never a sure bet and you could lose a lot of money.
You can make really good profits in cryptocurrency by keeping a close eye on the demand for Bitcoin and Altcoins and investing in them strictly based on their demand.
There are several risk factors to consider before investing in cryptocurrency:
- Cryptocurrency exchanges are purely “in the cloud” and are constant targets for hackers and cyberattacks.
- There is a lot of competition in cryptocurrency. Every coin is related to a different project. Research must be done before investing in any particular project to ensure that it is not a scam and that it in fact has potential for future earnings.
- The storage of cryptocurrency is more complex compared to stocks and bonds. Being that cryptocurrency is a digital currency it is stored in digital wallets that are prone to hackers. Cold Storage wallets also exist however they come with the risk of losing your password/private key resulting in your cryptocurrency being locked forever.
- There are so many cryptocurrency projects out there and only a few will succeed in the long-run.
- Governments are not completely in favor of cryptocurrency due to the fact that it is not regulated and taxed like regular currency.
Is Bitcoin a good long term investment?
Bitcoin is the most sought after cryptocurrency due to its popularity and the fact that it is owned by the most people. Investors refer to Bitcoin as “digital gold” because it is used as a form of digital cash. Nowadays you can make many purchases using Bitcoin instead of cash. Market experts believe that Bitcoin is a good long-term investment because only a limited supply exists unlike the US Dollar. The supply of Bitcoin will never increase. Also, many market experts feel like the value of the US Dollar will decrease due to the fact that the supply is unlimited. Whenever the Federal Government needs money, they print more of it resulting in a larger supply reducing the value. Many experts also believe that Bitcoin can become the first global currency!
Are Altcoins a good long-term investment?
The most popular Altcoin is Ethereum. Unlike Bitcoin that is a digital form of currency, Ethereum is a platform that hosts decentralized applications known as DAPPS. The biggest potential of Ethereum is the use of “Smart Contracts” which are basically programs that execute automatically based on pre-determined conditions. This can be a huge game changer in the economy as it will change the way many industries operate especially real estate and banking. Just imagine purchasing a home and not having to use the service of a title company. There will be Smart Contracts in place that will do the title search on any property within seconds at the fraction of the cost of a title company. Ether token is the cryptocurrency of Ethereum.
Is Cryptocurrency a good investment?
Well I wouldn’t go out and invest all of your life savings into crypto but I would definitely consider diversifying a percentage of a portfolio and investing it in cryptocurrency only if you know what you are getting yourself info. Only invest as much as you are willing to lose without feeling bad about it. Treat it as if you were going on a trip to Las Vegas. How much money would you take to gamble and be ok losing? Another less-riskier option would be to invest in the stock of companies that invest in cryptocurrency trading.