IT in Banking

Why you should invest in crypto-currency

Johannesburg, 07 Jul 2021
Read time 3min 30sec

It is hard for anyone to ignore crypto-currency as it is right in front of our faces. In one way or another, you must have heard of crypto-currencies, or at least Bitcoin. With all the hype, is it possible to amass extreme wealth with crypto-currency? What are the risks involved and is it worth investing in it? All these are viable questions that any serious crypto trader or investor will have in mind. The truth of the matter is that you can make loads of money with crypto-currency in the present world. However, you can suffer hefty losses and lose all the funds that you have invested.

In a major way, crypto-currency is a great investment when you have the right knowledge and exposure. This is a new concept that has opened up a whole range of opportunities. Digital currency is gradually becoming an acceptable mode of payment, thanks to crypto-currencies. Since we have established it is possible to make and lose money with crypto-currency, you will need to tread carefully. This is a system that has been defined as a transformative wave that could modernise a whole range of sectors and industries.

Crypto-currency is a digital currency and does not exist in the physical form. As such, crypto assets are considered to be a great way to store value. However, one of the challenges with crypto-currencies is that they are speculative and volatile, which may hinder their acceptance in mainstream markets. If you are thinking of investing in crypto-currencies, it is important to start on a small scale as you get to learn the ropes.

Reasons to invest in crypto-currencies

As mentioned, blockchain technology is revolutionary and will impact so many industries. Since this is a decentralised ecosystem, there are no banks or other institutions that will provide oversight services. With the elimination of intermediaries, transactions will be cheaper and faster to complete. Many businesses and individuals are starting to warm up to the idea of digital currencies. Investing and trading in crypto-currencies through platforms like The News Spy will be a great way to earn returns in high volumes.

Investors are always looking for a medium that can help them store value and crypto-currency has proved to be safe and reliable. Most coins come with a limited supply, which is capped by complex algorithms and computations. As such, even where there is inflation, the value of the crypto assets cannot be diluted. The decentralised nature of crypto-currencies makes it impossible for any government to interfere with their value. If you are an investor who gets worried about financial crises, bank errors or inflation issues, crypto-currencies are great investments.

Crypto-currency concerns

Scams and attacks are some of the major concerns about crypto-currencies as an investment. There are many crypto exchanges that have been hacked leading to losses of crypto assets worth millions of dollars. Being unregulated is another concern that some people have. In the event of any issue, you may not have any organisation or body that you can take up the matter with. Crypto wallets are also worrying concerns as they are attacked and the security is breached. Users with external wallets are not safe either because if they lose their private keys, they will lose their crypto-currencies for good.

Final thoughts

While there are some concerns with crypto-currency, it is a good investment which you should consider venturing into. However, remember that the market has so many variables that you should bear in mind before making your final decision. We cannot ignore the change that is coming our way and you can choose to take advantage of the opportunities that crypto-currency presents.

See also