Every investor looks for profitability. A straightforward way of getting the right result is the crypto market investment. Crypto assets have seen decent growth recently; the story was not the same five years back. It was in 2021 when there was a staggering rise in the demand for cryptocurrencies. From its growing applications to multiple use cases and the interest of big investors like Tesla and micro strategy made investment in Bitcoin users cryptocurrency a popular choice for investors.
However, one cannot undermine the rest associated with it. This detailed, informative article is an attempt to highlight the positives and downsides of investing in the crypto market. Read on to know more in detail!
Crypto Investing For Beginners: Why You Should Put Your Money In Cryptocurrency
Speculative Investing- People are investing in cryptocurrency hoping that the crypto market will grow in the coming times. Irrespective of the investment appetite, cryptocurrency is the most popular choice if one decides to make a move in investment.
Among all the popular forms of cryptocurrencies, Bitcoin and Ethereum has gained reputation in the market due to the rise in the value. bitcoin and Ethereum. This is primarily because of these cryptocurrencies’ wider acceptance and growing applications. Moreover, with more countries inclining towards regularizing the cryptocurrency market, it has become a safe investment decision.
It is speculated that by the end of 2022, the value of bitcoin may shoot up to $ 70,000.
Rising acceptance– Since more and more zorganizations on a global platform are now accepting bitcoin, it has become a popular choice for investors. Companies like Wikipedia, PayPal, Microsoft, Tesla micro strategy and others are a few names that have embraced the concept of bitcoin. Starbucks is also accepting payment via bitcoin. This shows the rising in interest of companies and governments toward decentralized payments. Hence, if You Are planning to enter the investment board, adding Kryptos to your investment portfolio will be wise.
The growing number of crypto exchanges: In addition to these aspects, many companies are accepting bitcoin payments. You can now make bookings for your travel and hotels and pay your credit card bills. In addition to this, investing in cryptocurrencies has become straightforward with the search for different crypto exchange platforms. More than 600 crypto exchange platforms presently provide the facility for investing in the crypto market.
Point of caution
As much as investing in the crypto market is lucrative, certain risks are associated with that. Two of the factors that have deterred many investors from making cryptocurrency a part of their investment portfolio are:
- Volatility-It is a significant factor that impacts the investment decision. Although the application of cryptocurrency is drawing and many companies are now embracing cryptocurrencies, highly fluctuating price of Bitcoins cannot be ignored at anyy cost. A small rumour or news about the cryptocurrency can adversely impact its market value. The same was observed in the case of bitcoin. However, if one plans their investment move wisely, they can save themselves from the downfall of the market value.
- Price volatility-Since there is an upper cap on the number of cryptocurrencies in the market and big investors hold more than 60% of the major crypto assets, they have the power to influence the market. This, yet again adds to the price volatility. All of this makes investing in the cryptocurrency market or risky investment.
What’s the way out?
Although there are certain deterring factors, we cannot undermine the fact that there is a huge benefit to investing in cryptocurrencies. The profits are huge, and applications are promising. All this investment in the cryptocurrency market is a positive move. If You Are confident and have a foolproof strategy for crypto investment, you can start exploring the different crypto exchange platforms and register yourself.
So, this was a brief overview of how the crypto market is progressing and how you can make your way to a profitable investment. Every investment, whether it is in the crypto market or the stock market, is impacted by market fluctuations. Hence one cannot completely undermine the risk factor. With research and understanding of the crypto market, you can easily frame a positive investment move. You can log on to https://bitcoin-pro.app/ to learn more about trading.