Is Cryptocurrency A Safe Investment?

Cryptocurrency is a word that is thrown around a lot in the media, but most people aren’t fully aware of what it is, or how it works.

Cryptocurrency is still a very young currency form, and being entirely digital like our MarkMeets digital marketing agency, it is often treated with suspicion by the more traditional-minded investors in the world.

If you are looking to diversify your wealth and make investments in 2021, you could be looking into investing in cryptocurrency. Even if you are suspicious of this elusive form of investment, keep reading – because in this blog, we will break down the risks of investing in cryptocurrency, as well as giving sage advice on getting started.

Let’s get started and dive headfirst into the weird world of cryptocurrency!

What is cryptocurrency, exactly?

Cryptocurrency, which comprises lots of different forms including the most well-known Bitcoin, is a digital form of currency that can be bought and traded online. Since the first cryptocurrency, Bitcoin was created in 2009, the value of cryptocurrency has soared over the years, although the road has often been a little turbulent.

The most well-known are:

• Ethereum
• Bitcoin
• XRP
• Stellar
• Cardano.

How do I invest in cryptocurrency?

When you own cryptocurrency, it is up to you to then sell it as you see fit. The whole point of making these investments is to grow your wealth, and if you have no idea how to do this, it’s a good idea to speak with a financial advisor or investment expert before you part with any money.

Is it safe to invest in cryptocurrency?

Now to the crux of the matter: is it safe to invest in cryptocurrency?

In short: yes, it is. When using an established exchange that has high cybersecurity and regulations, you shouldn’t worry too much about the security of cryptocurrency. 

Crypto concerns people mainly because of the fact it is a purely digital currency; you can’t hold it in your hand or trade it for goods. However, now that the market is becoming more and more established, stable and profitable, there are plenty of ways to use cryptocurrency to further your investment. 

If you are still concerned about crypto, here are the top three risks involved, and how to avoid them.

1. Financial loss.

Ultimately, the biggest risk to you as an investor is that you will lose money. You should never invest more than you can stand to lose; it is best to invest small amounts in crypto, especially when you are just getting started.

2. Falling prey to hackers.

Hackers look at cryptocurrency like lions look at prey: they’ll stop at nothing to get at it. Luckily, established platforms for trading crypto have found ways to keep them at bay.

3. Few regulations.

Unlike regular banking, there are few regulations on cryptocurrency. This makes it a more risky market to invest in because there are fewer safety nets for your money.

Ultimately, investing in cryptocurrency could reap many rewards for you in 2021!