Bitcoin is getting popular every passing day, and if someone doesn’t get the chance to invest in this currency, they get a high feeling of missing out. They feel like they are not a part of the trend and will miss the chance of becoming something exceptional. Well, crypto is exceptional, there are no second thoughts about it, but it isn’t everyone’s forte.
The thing that worries people the most is the turbulency of the marketplace. But that was also fixed after the advent of automated bots like the theimmediateconnect.com. After using them, traders could handle numerous trades at once which became another attractive aspect of cryptocurrency. But, if you are a beginner, then there are a few things that you should consider before investing in this commodity. In this post, we have gathered 5 negative and positive aspects of cryptocurrency which will help you in making a better decision of whether this currency is worth investing for you or not.
5 Positive Aspects of Investing in Bitcoin
People criticize cryptocurrency a lot. But in this section, we will tell you why digital currency might be the best investment option for you. You should look at your resources instead of listening to criticism and decide whether crypto is good for you or not.
Revenues Can Be Massive
You might have heard many stories that someone earned double or triple the amount of money they initially invested. In the beginning, Bitcoin didn’t have much popularity so it didn’t have a high buying price. So, those who invested $1000 in Bitcoin back in 2013, will now have an accumulative sum of $400,000! But, investing in the currency is still possible. You can start small and eventually increase the amount once you understand how the marketplace works.
The whole cryptocurrency platform is pretty transparent about how the currency works. If you are a member or an active crypto investor, you will be able to see all the registered users (though they are anonymous), the number of transactions, and how the system works on the distributed ledger. You can easily understand how Bitcoin works and this will help you in making the tough choice of whether to invest in this currency or not.
Your financial resources may be held for years if you invest in a new business as a commodity. Until somebody purchases your shares, the business gets purchased, or it becomes public, you’re bound. Not so with cryptocurrency investments, where the capital is more liquid.
With digital currencies, you may instantly trade or purchase them. Marketplaces are open every day of the week, and all day long. Since purchasing and selling are frequently instantaneous, you can respond swiftly to price fluctuations.
Banking institutions usually have complete details and information about the funds you have in your account. To handle international transactions or other financial tasks, you have to be in contact with a mediator to help you go through all of those processes. But in cryptocurrency, you won’t have to face this problem as the main aim of its creation was to provide autonomy to its consumers. When you seek full authority over your financial affairs, the decentralized framework of the cryptocurrency realm is a huge benefit. This will ensure that no other entity controls what you own and provide you complete control over all your money.
The limited quantity of Bitcoin and other altcoins is one of its unique features. Whenever someone releases a new cryptocurrency coin, they make a limited quantity of it because the lesser the amount, the more people will want it. This is one of the things that control the pricing of cryptocurrency. When there is a high demand for a coin and less quantity of it, then its price will dramatically increase and vice versa. When any cryptocurrency is going through a tough time and has a lesser value, it is the best time to buy it because in the future it will have a higher value as people always look for cheaper currencies to buy.
5 Negative Aspects of Investing in Bitcoin
Now that we have laid down the positives of the currency, it is now time to discover the disadvantages of this currency. This is not to say you shouldn’t consider an investment in it. It will give you a better perspective of understanding the nature of Bitcoin and how you should strategize to earn maximum revenue.
Absence of Regulation
Due to decentralization, we know that cryptocurrency does not come under the rules and regulations of cryptocurrency. It makes it vulnerable to malicious attacks and poses an extreme risk, especially for novice traders. But it doesn’t show that you shouldn’t invest in the currency at all. Take all of the safety measures that are provided to you through your exchange, currency, and other crypto experts.
Another thing that you should do is invest a small amount in different currencies instead of a hefty amount in one. It will save you from severe loss because if one currency fails, the others can help recover that amount.
You can buy virtual cash from marketplaces located all over the world because cryptocurrencies are by definition unaffiliated with a single authority or banking organization. This versatility is fantastic since it enables you to collaborate with any organization you choose, without having to restrict your choices to those available in your home country.
However, you will most likely be requested an international transaction charge on what you buy if you decide to go with crypto trading platforms that are located outside of your nation’s borders. Even though the typical credit card international payment fee of 2% to 3% may not appear like a great deal, if you spend $1,000 on Bitcoin, charges will cost you $30! So, before making that financial decision, prepare yourself.
Purchasing the Currency is Tricky
Since cryptocurrency is a decentralized kind of virtual currency, you can’t just go up to your neighborhood ATM, insert your banking card, and acquire actual Bitcoins you may utilize to make a purchase, as you would with traditional paper money.
You must create a digital wallet electronically to purchase cryptocurrencies. In essence, a digital wallet is similar to a normal wallet but it requires an internet connection to work. It enables you to store Bitcoin (and numerous other altcoins), and then you can purchase or spend them employing dollars or any other fiat currency you would need. When you’ve established a virtual wallet, you can purchase, spend, and deal with the virtual money of your preference at a “cryptocurrency platform.”
To produce Bitcoin, you have to mine the currency. The process of mining is where you solve complex mathematical equations as soon as possible so you acquire your rewards. To be the fastest of all, people use expensive mining rigs with state-of-the-art technology that will help them get accurate results in less time. Those rigs require a tremendous amount of energy and they release that same amount too. This has caused upheaval in the ecological part of society where activists and other people say that crypto is becoming an environmental hazard. A new system is released which requires less energy but it is still new and will require a lot of testing before being open to the public.
Each bitcoin was valued at around $160 in the early stages of the virtual money’s creation after an initial price rise. Late in 2017, the value achieved a record-breaking high of nearly $25,000 before falling to just $4,400 just over a year afterward. This implies that investing in cryptocurrencies carries an elevated degree of risk, particularly when contrasted with investments stored in fiat money, which are considerably more secure and trustworthy.
The reality that the worth of digital currencies is so volatile shows that these coins may not be an appropriate option to put all of your life’s money. Stash aside a tiny amount of funds that you’re prepared to let go of, like your weekly coffee budget, if you’re hoping to get started with Bitcoin without putting too much of your wealth in jeopardy.
This article showed you the good and bad sides of cryptocurrency which is necessary to know about as you are about to allocate your money to it. While mentioning the negative aspects, we made sure that you get the solution to avoid the problem or to tackle the situation. Because Bitcoin and other altcoins are indeed a very valuable form of investment and necessary to have. Because inflation is going wild and to combat this problem you should have an asset or two that give you good returns. You can continue with your conventional assets but make sure to add a crypto coin or two to the portfolio of assets.
Disclaimer: Any mention of any trading or investing tool in this article is not an investment advice. This article is published as received.