Investing in Cryptocurrencies has always been a hot topic debated across the world. Several questions arise for an underdog investor. How to invest in cryptocurrency? Is cryptocurrency in India legal? And many more.
It is good if one wants to gain direct exposure to the demand for digital currency and the projects or businesses they facilitate. This investment comes with a host of risks but can also reap good rewards.
It can make you filthy rich or lose all your money
We are most of the top questions asked by people about such investments.
Investing in Cryptocurrencies. Is it Good or Bad?
Digital Currency, quite a risky investment compared to most asset classes has gained popularity in quick succession. Experts recommend allocating only a small portion of your total investment to crypto.
Higher risk could be attractive because it may mean higher rewards
Cryptocurrencies like Bitcoin, Ethereum have proved that they can achieve bigger goals and hence investors who buy their tokens today will likely be rewarded in the years ahead. Bitcoin, for example, is seen as an investment similar to gold. Ethereum on the other hand wants to serve as a global computing platform.
But there are many other such projects in competition, but their success is not assured by any means. Cryptocurrency in India has been a mystery. On one hand, there are rumors of banning it, and on the other hand millions of people investing in it. Yet, it remains as a rumor, there is no evidence or any official statement regarding the ban.
How to invest in cryptocurrency? Is it Safe?
Compared to bonds and stocks, it presents a higher risk as an investment. For instance, we have seen a lot of digital currencies stolen due to security violations and other criminal activities.
Additionally, scams and frauds have increased in the crypto world due to a lack of investor’s knowledge about cryptos. Investors falling into such traps, often lose money. While there are exchanges that make it easier to buy and sell crypto assets, many people don’t like to store their assets on exchanges due to theft and cyberattacks.