Cryptocurrency: A New Investment Opportunity?
Launched around 2009, bitcoin (BTC) was the first crypto coin of its kind to run on the blockchain. Following the birth of BTC, thousands of other crypto coins (altcoins) such as Ethereum (ETH) and Litecoin (LTC) were also introduced, bringing diversity to the fast-rising crypto industry.
As of July 23, 2020, 1 bitcoin (BTC) was valued at roughly $9000; a massive amount of money just for one unit of a digital currency So, is cryptocurrency a new investment opportunity? Well, of course, it is. But depending on your knowledge of and experience in the crypto business, cryptocurrency may represent a great investment opportunity. There’s plenty of money in the crypto industry. Click on https://nakitcoins.com/ to invest in bitcoins right away.
Why Cryptocurrency Investment is a Good Idea
Accessibility and Liquidity
Provided your crypto assets are stored securely, there is an assurance that you can make quick, secure, and cost-effective transactions anytime, anywhere. When you compare crypto to traditional (fiat) currencies, you will realize that the former facilitates fast and simple transactions even in terms of cross-border payments.
While insecure cryptocurrency exchanges continue to tarnish the image of the industry, reliable exchanges can provide you with an avenue to invest wisely without any fear of failure or restrictions. Moreover, investors can easily liquidate their crypto assets into traditional currencies.
A lot of cryptocurrencies in circulation today are based on the blockchain (the public ledger book that records cryptocurrency transactions). All crypto transactions on the blockchain are publicly visible to all parties. So, decentralized cryptosystems have unmatched levels of transparency. Once you make a transaction, you can track its progress.
Blockchain is Secure
By its very nature, the blockchain is impenetrable and immutable. Computer networks compute to confirm and record transactions. Once a transaction is made on the blockchain, it’s immutable (unchangeable). That means no one can alter the history of the transactions displayed on the computers of the account holders. Even if bad actors try to tamper with the history of the transactions, a computer network consensus can detect and prevent such changes.
With fiat currencies, there are a lot of concerns regarding their authenticity. For example, the printing of counterfeit fiat currencies is something that cannot be done on the blockchain. Across the world, treasuries are worried by the rampant circulation of counterfeit notes since they decrease the value of money
Supports Both Long & Short-Term Investments
Crypto investors enjoy the flexibility of making short-term or long-term investments according to their wishes. Both long-term and short-term investors have the opportunity to make good returns if they invest wisely. You can buy coins at low prices and sell at high prices during market booms. This is the idea of holding and trading.
Good Profit Potential
For those who are ready to accept the risks of volatility, a crypto investment can be a gold mine. By investing in valuable coins, you can rake in unprecedented profit margins within the blink of an eye. However, there is also the possibility that your investment can go on a downward spiral during market crashes. Ultimately you’re left with a capital gain or a capital loss, both of which must be reported when you calculate your tax refund for the year.
In summary, crypto gurus are making a lot of money by investing in the multi-billion-dollar industry. However, in addition to the price volatility, there are cyber-security challenges confronting the crypto movement.
or reload the browser