Investing in cryptocurrency is easier today than ever. Investors of all sizes have the ability to choose from a variety of coins, digital wallets, exchanges, and a range of different investment options in addition to cryptocurrencies.
It is important to note that unlike traditional investment options, such as stocks, bonds, money markets, ETFs, or standard investments, cryptocurrencies are not regulated at this time. This means it is on the buyer to do the research and choose each component of the technology to maximize their safety in the investment.
There are also thousands of different cryptocurrencies. Most people assume there are a handful, including Bitcoin, Ethereum, the newer option in Dogecoin, Polkadot, and Cardano. However, there are over 6500 possible options, most of which are not considered good investment options.
Wildly Volatile and Unstable
The dramatic spike in the value of cryptocurrencies attracts the interest of potential investors. While it is true the reward can be incredible, it is also common for the value to drop just as suddenly and without any specific factor in the market signaling a drop or a rise in value.
Scammers Are Around
There are a lot of cryptocurrency investment “advisors” and “gurus” that are marketing their services to provide assistance in learning about crypto assets and investment strategies. Unfortunately, many of these individuals have limited if any skills or training, and they often use these marketing techniques to create crypto scams that take your hard-earned money.
You Can Buy In
In the early days of cryptocurrencies, people “mined” for Bitcoin. Today, new platforms allow investors to use currency or even credit cards to purchase the cryptocurrency for their investment.
There are some Trusts that are gaining ground, working to make investments in cryptocurrencies for their customers. This will become more common if regulation is placed on the crypto assets, and it will add to investor confidence in the market.