Is cryptocurrency a good investment? This type of question has attained the status of a global debate. From experts to tech enthusiasts, everyone is having the same discussion at one point or another.
A whole school of thought considers crypto more of a temporary hype market. On the contrary, a particular school of thought labels crypto as the future of financial models. To get to an absolute result, let us take a look at the possible investment dynamics of crypto.
Possible Risks
The most significant risk of them all is the volatility of the market. There are no criteria that determine a more stable or fixed crypto evaluation. Outer trends and campaigns will always influence the market. Models like the pump and dump are also affecting the crypto evaluation.
Plus, there is still a certain class of individuals believing that it is all a scam. They simply aren’t willing to trust something they can’t practically touch or see. Transactions security is also a major debatable topic for crypto-based assets.
Market trends
The market of crypto assets is highly volatile. There is no doubt about that. But with the right strategy of investing, you can get massive profits out of a single trade deal. This shows the potential of cryptocurrencies as an investable asset. Like you can literally Trade Bitcoin by buying it from exchanges like Bitosis.
The market trends generally depend upon the pump and dump approach. When a certain amount of coins get dumped in the stream, it automatically impacts the coin valuation for the time being. This is the point where you need to make the call of holding on to the investment or letting it all go to prevent any loss.
What does the future hold?
No one is quite certain at this point. There is good news and bad news associated with the global crypto industry. The good news is that major countries like the UAE have legalized the crypto trade of some specific crypto assets. This has opened up doors for a whole new market.
The bad news is that major governments aren’t happy with the independent working model of crypto-based assets. They are in talks to impose specific regulations that somehow put crypto assets under their influence. No one knows the outcome of such an approach.
Expert opinion
If we focus on whether either cryptocurrency is good for investment, there are two major divisions among experts. The very first division believes in the supremacy of digital and tech-based assets. They refer to all of this as the revolution of the human financial systems.
On the other hand, a large division of experts believes it is more of a temporary gimmick. The assets that you can physically touch or see hold the real value. Plus, there is no specific mechanism for crypto-based assets regularization.
Some great crypto investment options
Even with all the possible cons of crypto-based assets, some investors believe in the whole idea pitched by cryptocurrencies. Up to some extent, we can already see this idea shaping. Here are some great options to pack your portfolio with for those who want to invest in cryptocurrencies.
The very first one is Bitcoin itself. This is the cryptocurrency that started this whole revolution. For quite some time now, Bitcoin has maintained the spot of the highest valued cryptocurrency of all times. We have Ethereum-based coins integrated with the dApps models right after Bitcoin.
Final note
The future of cryptocurrencies is quite promising. Countries like the UAE are finally getting lenient with the whole crypto community. This initiative has opened up new marketplaces for cryptocurrencies, fuelling the dream of replacing global financial models with crypto-based models.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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