Cryptocurrency Outlook in 2018, Invest or Not
If you have been following the crypto news, you’ll know that Cryptocurrencies have been around for almost a decade now with Bitcoin being the first to come into the big picture. Today, we have so many of them around, and so many people have been investing in them.
If you are like other people who are currently wondering whether to invest in cryptocurrency in the year 2018, this article is for you.
Before we proceed, let’s get ourselves familiar with cryptocurrency: Is it a good option? And what the heck is cryptocurrency anyway?
Before you invest in cryptocurrency, here are few things you should know about it.
Note: This article is only for informational purposes only; never take this article as a serious financial advice.
What is Cryptocurrency?
They are otherwise known as digital money or online money. Just like every other currency, you can exchange cryptocurrency for other well-known currencies, for example, Bitcoin to Dollars and vice versa, and it fluctuates in relation to other currencies as well.
However, unlike other currencies, it is decentralized; this means that there isn’t any central bank, country or government control.
Advantages of Cryptocurrency
- Easy To Send Money
Because each of the available cryptocurrency (for example, Bitcoin, Litecoin, Etherum, etc.) is decentralized, you can easily send money to anyone around the world without hassles; you don’t need to pay bank charges to send money too.
Instead of waiting for wireless transfer that could delay for days, sending money using cryptocurrency is instant – this alone makes it popular.
Transacting in crypto is private; you can send money to people without leaving too much information (like your name, home address, etc.) about yourself. There is no way crypto transactions can be traced back to you.
If you don’t like your banks spying on you (or telling you how much of your money that you can or can’t move), making use of your preferred cryptocurrency is a good way to transact.
So these are some benefits you derive from investing in cryptocurrency. What about the disadvantages?
Disadvantages of Cryptocurrency
- Risky – Price Fluctuations
Cryptocurrency often does not have a stable value. For example, bitcoin is prominent for rising slowly over months – and then falling 20 – 50% over a couple of days. Because it’s being traded every day, its value is always fluctuating. You may buy bitcoin when its value if high, only for it to fall suddenly.
So basically cryptocurrency is not stable – and there are a lot of unknowns that can influence the price. The rule is simple: don’t put any money that you can’t afford to lose into cryptocurrency.
- Crypro Transactions are Not Reversible
Unlike a credit card charge, you can’t reverse cryptocurrencies transaction. This means that if you send money to the wrong address, it is gone forever.
Also, there have been many reports of forgotten or hacked wallet details, and most people end up losing their coins forever. For this reason, you need to know what you’re doing and take the time to research how to buy and store your coins correctly if you want to invest in cryptocurrency.
So, should you invest in Cryptocurrency?
If you do decide to invest in cryptocurrency in 2018, ensure you take your time and research your options and the best to buy. Only buy from a trusted seller. Although there are so many dubious cryptocurrency sellers out there, some of them are trustworthy and run a great business.
And remember the golden rule here – never invest more than you can afford to lose.