If you are looking to invest your hard-earned money in the right place then you just took the first step towards it. Read further to know how.
It is the way towards the future, it’s the way towards success, ease, and much more. You can only know if buying cryptocurrency is wise or not once you get to know the basics.
As the word depicts, it’s a currency. Currency tells us it is a means of exchange. People and firms have been using it as an investment as well. However, it is not in terms of a physical object such as paper money or coins. Instead, it is a digital asset, a digital currency. It is mainly popular as a good investment opportunity. You can own coins, similar or of different kinds, that are stored by cryptography. Ledgers are used to store your coins in a computerized database. The computerized database makes it impossible to create fake cryptocurrencies or use a single one twice. Cryptocurrency is also referred to as tokens. Different firms, companies, and industries issue their cryptocurrency that they call tokens. Today thousands of cryptocurrencies exist but from 2009, the formation of the first crypto, to 2021, bitcoin is the one that remains undefeated.
What is a Bitcoin?
Bitcoin can easily be termed as the McDonald’s of cryptocurrency. You may wonder why. Well, bitcoin is now very established, and famous enough to be called the McDonald’s of cryptocurrency. Everyone knows about bitcoin in the crypto-world as a foodie would know about McDonald’s. It was created back in 2009 by an unknown person who is still has not been found. This cryptocurrency allows you to make transactions with no one involved as the middle man. It can be used to do purchases anonymously. There are no extra charges here as there are in credit cards. It faces no country-wise restriction or regulation as well. With the growing popularity of crypto in our country, you can now easily buy bitcoin in Pakistan.
We will not get onto the benefits and downsides of investing in cryptocurrency which will ultimately bring us to the answer to our question.
Benefits of Investing in Cryptocurrency
1.Good Profit – No doubt investing in cryptocurrency will bring you profits. At this time, it is considered as one of the best investments because the returns are fast and investment can be done with whatever amount you can. However, make sure to make a strategy and follow it.2.Ownership of Your Money – Cryptocurrencies may seem volatile but no currency can ever top its advantage of providing you the full ownership of your money. Banks and other firms make us believe that our money is secure but it is never entirely secure. Our money can be confiscated by banks for different reasons. In cryptocurrency, you will not have to face such unfortunate circumstances. You do not have to pay any hidden or extra charges and ever be worried about someone else taking control over it.
3.Liquidity – When an asset is bought, its liquidity is to be checked at first. That is how easily it can be bought then sold, how much time the process of buying and selling takes, the fluctuation in its market rate, etc. Now, considering all these factors, cryptocurrency can be said as an investment with high liquidity. You can buy and sell it anytime; the process is easy and doesn’t take much time. Trading platforms also allow you to apply different tools to the best of your interests.
Downsides of Investing in Cryptocurrency
1.Volatile – One of the downsides is how cryptocurrency faces highs and lows. You can invest one minute and lose in the next one just because of poor research. A good research can save you from such downfall.
2.Lack of Regulation – Laws regarding the taxation of cryptocurrency are different across different countries. There is no universal law. Even the existing ones are not so strong which can enable scams and frauds.
3.Loss Due to Technical Errors – As cryptocurrency is stored on computers, these can be lost if the computer is corrupted or crashed.
Analyzing the benefits and downsides of cryptocurrency investment brings us to the conclusion that it can be a wise or a foolish investment depending on how you play it. So, just like research is required before any investment, crypto requires it too. Now, with many bitcoin exchanger in Pakistan like c4changer, it is hard to make a mistake plus there are multiple guides available to help you make a wise investment.