Cryptocurrency is a word that has been doing rounds on the internet for the past many years. Every day you hear some cryptocurrency news. It all started with the rise of Bitcoin in 2008, and it is the pioneering cryptocurrency that paved the way for a new era of the digital financial revolution.
There has been a considerable increase in investment in cryptocurrency. As per Survey Monkey, around 11% of people in the United States have invested in cryptocurrency. Are you curious to learn why there is a sudden growing inclination in cryptocurrency investment? Will investing in Cryptocurrency in 2021 make you rich? Well, the current inclination towards cryptocurrency investment certainly shows the same.
We are certainly living in the bitcoin age, and the reason we say this is because presently, investment in cryptocurrency draws more attention than the stock market. As per a recent survey by Cardify in September 2021, people invested an average of $263 into crypto as compared to the average of $250 in traditional brokerages during the same month. Today, everyone wants to invest in the crypto market, primarily because it promises a good return. Since the crypto market is a fairly new one and is prone to a lot of risks, hence before you start investing in it, you must acquaint yourself with some information about cryptocurrencies.
Is It Safe To Invest In Cryptocurrency?
One of the common questions that pop up is whether investing in cryptocurrency is safe or not? So, let’s try to answer these questions. Similar to the stock market, Cryptocurrency is also vulnerable. A security breach is a common concern. Some investors of cryptocurrency become victims of online hacking and criminal activity as well. However, if you know how to be secure, you won’t fall into any such trap. So being informed about how it works and its best practices is very important
Key points to consider when investing in cryptocurrency
Acquaint yourself with the crypto market: It is always good to learn about what you are planning to invest in; for example, the crypto market is new for a lot of people out there. If you too fall in this bracket, it is important that you learn about cryptocurrency and how the market operates. Knowing about it will make it easier for you to buy and trade in cryptocurrencies like bitcoins and others.
Choose the right crypto platform: You will find so many need so many platforms emerging that claim to be a secured portal to invest in cryptocurrency. But when it comes to choosing the one, you must research the various cryptocurrency exchange platforms to avoid bitcoin manipulation.
Own a crypto wallet- Some investors prefer to use a crypto-wallet as it keeps cryptocurrencies protected through encryption. The sign-in procedure of a crypto wallet is very secure and uses private keys that are just like a password. However, one of the common mistakes that people make is that they forget their private keys. This results in problems accessing the cryptocurrency.
Start small: This is one piece of advice that you must always follow, especially if you are new to the crypto market. You can begin with a smaller investment, and once you know how the market operates, you can increase your investment amount.
The Rising Interest of Investors in Cryptocurrency
Despite the inherent risks, the cryptocurrency industry is still rising and becoming stronger with increasing investors. It has now also become easy to sell and buy your cryptocurrency assets using PayPal and Square, and these two platforms have made things a lot easier. As per CNBC Survey, 1 in 10 persons is investing in cryptocurrencies due to the easy buying and selling of crypto (43%). However, people who were surveyed ranked digital coins after real estate and stock market investments. More reasons why people are investing in them is the excitement (35%) and amazing returns in a short span (31%). However, one must exercise caution and stay informed.
Concluding thoughts
Although the cryptocurrency market is not regulated and there are a certain set of apprehensions surrounding it, there is a growing inclination towards cryptocurrency investment because of highly promising returns. At the time of writing Bitcoin stands at USD 54,301.50USD (27 November 2021. Although the amount has dropped, demand for cryptocurrency is rising, and this is certainly the beginning of a new era of the decentralized digital financial revolution.
Cryptocurrency projects are also growing in numbers, there are many new ventures in this segment pointing towards a bright future of cryptocurrency. It can be said that Bitcoin and cryptocurrency that was once considered as the Tulip crisis are not the same. It is here to stay.
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