We all know that it’s possible to get very rich by investing in cryptocurrency in 2021. But, the downside of it is that you could also lose all of your money.
The initial two sentences will leave my readers wondering that how can both statements be true at once? Well, today we examine how.
For now, just keep in mind that investing in crypto assets is very risky but is also potentially profitable.
If you want to gain direct exposure to the demand for digital currency, crypto assets are your point to ponder. Unlike other financial instruments, this mode does not derive its value from any asset and is not centrally regulated. Thought that this is it, right?
Here you go, it is extremely volatile and gets valued or devalued by even some tweets. This is why no one can give you a fixed set of cryptocurrency tips.
Since regulating it is a difficult thing to do, therefore most countries are not ready to accept it. Yes, the idea of a decentralised currency is fancy but no government is ready to fancy it. One more point that why you shouldn’t go for this new ‘cool’ of today is that unlike other financial instruments, where redressal can be sought from an authority for a loss, you can’t do the same for crypto.
It is true that it could be the next big thing – as many experts are regarding Enjin as the next big cryptocurrency to explode in 2021 – and since it is a global currency via which transactions could be carried out across the globe without tax deductions of any sort, it could potentially change the world by revolutionising banking and financial services.
Bitcoin – also referred to as digital gold – brings in one of the biggest risks of investing in crypto with its extreme volatility. At one point, it roughly lost roughly 80% of its value and continues to experience turbulence regularly.
For those who happen to be the risk-averse type, investing in crypto could be extremely stressful. Even if this digital mode of currency does succeed over the long run, not all investors have the abdomen to deal with the short-term ups and downs.
Now that it is established that how will the currency perform over time, even some of the biggest names in finance don’t give you an exact outline of how will the currency perform over time.