A cryptocurrency is a form of payment that can be exchanged online for any goods and services you wish for. Blockchain technology is used in Cryptocurrencies. This blockchain is a decentralized technology spread across many computers to manage transaction records. The only appeal of this technology is its security.
Owning or investing in some cryptocurrency can increase your financial investments with a risk management strategy. Since it is a digital currency, it can be used for transactions all around the world without having to pay the money. Not only this, but it can revolutionize the banking and finance sector as well.
Buying and holding is the most common way of earning money from cryptocurrencies. Usually, investors buy cryptocurrency coins such as Bitcoin, Litecoin, Ripple, and more and they wait until the value of these coins rises. When the market prices of these colins are high, they sell at a profit.
Using cryptocurrencies, we can avoid transaction costs unlike transferring money from a digital account to a bank account. One can transact at any time of the day, which means 24/7 and there is no limit for your purchases and withdrawals.
Investing in these cryptocurrencies such as Bitcoin and Ethereum is considered a high-risk investment. It is because of the fluctuating prices of cryptocurrencies, some might be wrong, some might be a scam, and some get good value in return for the investors.
The founder and financial planner of CapitalWe, Vrishin Subramaniam says the investors should invest just 2%-5% of their net property and should be keen on tracking the crypto markets now and then.
I was exposed to bitcoins at the end of 2015 and I deeply regret not investing in them then. The price was between ($650~$850) that time. This is a cruel reminder to me that I am still not well versed in spotting upcoming bubbles but I am still trying to learn from my past mistakes!
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