Cryptocurrencies are all the rage right now. Bitcoin, Ethereum, Litecoin, and other cryptocurrencies are generating a lot of interest as people try to figure out how to make money from them.
Bitcoin, in particular, has seen its value skyrocket in recent months. In December 2016, a single Bitcoin was worth around $800. As of September 2017, that same Bitcoin was worth over $4,000.
Clearly, there is a lot of money to be made in cryptocurrency investing. But is it right for you? Here are the pros and cons to consider.
PROS:
1. High potential returns.
As mentioned, the value of Bitcoin and other cryptocurrencies has been soaring in recent months. If you invest in a cryptocurrency at the right time, you can make a lot of money very quickly.
2. Low fees.
Cryptocurrency exchanges charge very low fees, often just a few percent of the total transaction amount. This is a lot lower than the fees charged by traditional financial institutions.
3. Decentralized.
Cryptocurrencies are decentralized, meaning they are not controlled by any single entity. This gives investors a lot of confidence, as there is no one person or company that can manipulate the price or make decisions that are unfavorable to investors.
4. Easy to use.
Cryptocurrencies are easy to use, especially with the advent of Bitcoin wallets and other mobile apps. This makes them perfect for people who are new to investing.
5. Portable.
Cryptocurrencies can be stored on digital devices such as smartphones and laptops, making them easy to take with you wherever you go.
CONS:
1. Volatile.
Cryptocurrencies are extremely volatile, which can lead to large swings in their price. This can be a risk for investors who are not comfortable with fluctuations in value.
2. Risky.
Cryptocurrencies are still relatively new and unproven, and therefore carry a higher risk than more established investments.
3. Not regulated.
Cryptocurrencies are not currently regulated, which means there is no guarantee that they will be around in the future. This could be a problem for investors who are looking for a long-term investment.
4. Limited use.
At the moment, cryptocurrencies are mainly used for investing and trading. However, they have yet to be widely accepted as a payment method for goods and services.
5. Complex.
Cryptocurrencies are complex and can be difficult to understand for novice investors. This can lead to confusion and mistakes.
Bitcoin, in particular, has seen its value skyrocket in recent months. In December 2016, a single Bitcoin was worth around $800. As of September 2017, that same Bitcoin was worth over $4,000.
Clearly, there is a lot of money to be made in cryptocurrency investing. But is it right for you? Here are the pros and cons to consider.
PROS:
1. High potential returns.
As mentioned, the value of Bitcoin and other cryptocurrencies has been soaring in recent months. If you invest in a cryptocurrency at the right time, you can make a lot of money very quickly.
2. Low fees.
Cryptocurrency exchanges charge very low fees, often just a few percent of the total transaction amount. This is a lot lower than the fees charged by traditional financial institutions.
3. Decentralized.
Cryptocurrencies are decentralized, meaning they are not controlled by any single entity. This gives investors a lot of confidence, as there is no one person or company that can manipulate the price or make decisions that are unfavorable to investors.
4. Easy to use.
Cryptocurrencies are easy to use, especially with the advent of Bitcoin wallets and other mobile apps. This makes them perfect for people who are new to investing.
5. Portable.
Cryptocurrencies can be stored on digital devices such as smartphones and laptops, making them easy to take with you wherever you go.
CONS:
1. Volatile.
Cryptocurrencies are extremely volatile, which can lead to large swings in their price. This can be a risk for investors who are not comfortable with fluctuations in value.
2. Risky.
Cryptocurrencies are still relatively new and unproven, and therefore carry a higher risk than more established investments.
3. Not regulated.
Cryptocurrencies are not currently regulated, which means there is no guarantee that they will be around in the future. This could be a problem for investors who are looking for a long-term investment.
4. Limited use.
At the moment, cryptocurrencies are mainly used for investing and trading. However, they have yet to be widely accepted as a payment method for goods and services.
5. Complex.
Cryptocurrencies are complex and can be difficult to understand for novice investors. This can lead to confusion and mistakes.
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