Is Cryptocurrency a Good Investment?

Question

Considering all the related risks and volatility of cryptocurrency market, it becomes really difficult for investors to be sure about its profitability. And usually we look for the exact answer as to whether cryptocurrency is a good investment or not?

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Martin Hope 3 years 1 Answer 7393 views 28

Answer ( 1 )

  1. Summary: Well, a cryptocurrency investments can be a good investment or might also not be. Since cryptocurrency market is new, there can’t be a test or a no answer to this question. Since investments are subject to market risk, so is with cryptocurrencies.

    For day traders cryptocurrencies might be risky but at the same time be a potentially rewarding bet. Since the cryptocurrency market is volatile, timing your buying and selling correctly would often end in earning huge profits by buying high low and selling them high.

    Cryptocurrency is, despite all its risks, perhaps the most exciting asset of the 21st century. A decentralized digital currency that works on the very interesting and likely here-to-stay blockchain technology. There are a thousand reasons to be excited about cryptocurrency, but also reasons to be conservative in your investment strategy. Don’t dump your whole 401k into cryptocurrency, but don’t be scared to get a toe wet with a small investment you are comfortable losing.

    Although, the unknowns and high price and volatile market make it risky, but there are plenty of reasons to be excited despite all that especially long-term.

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