The Crypto trade market has started to roar again. With the start of the second rally after three long years, the Crypto trade market is again on its role. 2020 November has become the sixth consecutive successful November month. However, this November has been super special for the Crypto investors and traders.
Last Thursday, the Bitcoin price finally crossed the $16K mark. These exorbitant price hikes in the Crypto trade market sign that Bitcoin might repeat yet another historic rally. After seeing the Bitcoin price evaluation crossing $18K, traders and investors started shifting their assets to Cryptocurrency.
Investors and traders looking for secured platforms find the optimal entry point in the market. This was when bitcoin trader official became the most renowned Crypto trading platform for new investors.
However, you need to understand that the Crypto trade market is nothing like walking in the park. With every investment, you need to be prepared to lose it all. Seeing how new investors are losing their capital investing in the Crypto industry, we thought of coming up with an article that will let new investors know the long-coming and shortcoming of the Crypto trade industry.
Positive Things To Consider While Investing In Cryptocurrency
The cryptocurrency concept is new in the market and has brought new financial investment practices in the market. This has intrigued many investors. What are the reasons investors are willing to invest in this volatile asset? Let’s find out.
Top Digital Assets
It has only been over a decade, and Cryptocurrency has proven its worth by becoming the top digital assets in the market. Today, the total market capitalization is well over $600 billion. Experts believe that this amount will be two-folds at the end of 2024.
Hedge Against Inflation
The Dollar price is on the drop, and the market is in shambles due to the pandemic. This has created a panic market. Hence, investors are looking for assets that will act as a hedge against inflation.
Due to the decentralized nature of the Cryptocurrency, investors get full control over their assets. This decentralized nature also helps people safeguard their assets from any fraudulent activity.
Exchanges Are Smooth And Faster
Cryptocurrency can be bought from any fiat currencies. No matter from which country you belong, there is always a chance that you will be able to buy any Cryptocurrency (provided it is not banned in your country).
Faster Way To Transfer Money
With the lack of Intermediaries, the process of the transaction speed. Hence, unlike traditional transaction processes where a complete process took a couple of days, in the Cryptocurrency transaction, a complete process takes just a couple of minutes.
Negative Things to consider while Investing Cryptocurrencies
With every asset, there comes a fair share of troubles and negative sides. Cryptocurrency is no different. Here are the negative things that you need to consider while investing in the Cryptocurrencies.
The market of Cryptocurrencies is the most Volatile market. The price keeps on changing every second. You might not even be able to predict the outcome of the Cryptocurrency for the next minutes.
Can Lose All Your Capital
When you are investing in Cryptocurrency, all your assets are encrypted in the form of text. Hence, if a hack ever happens, you will not only lose all your information, but you will also lose all your wealth.
Prone To Fraudulent Activities
Though Cryptocurrency is backed with Blockchain technology and is decentralized in nature, it sometimes has the same feature backfires. Due to the decentralized nature government cannot track the misused of the Digital platforms.
All Coins Are Not Available For Exchange
Despite being several Cryptocurrencies in the market. However, only a few hundreds are available on every platform, and the rest are limited to their region. This is one of the pillars as to why the regulation market is facing a hard time.
Adverse Effect On Environment
Cryptocurrency mining processes use up lots of electricity. We are well aware that most of the country uses the burning of coal to produce electricity. Hence, Cryptocurrency is directly affecting the environment.
No Cancellation Policy
The worst part of the Cryptocurrency is that there are no cancellation policies. Once the transaction is done, you won’t be able to regain the claim. Hence, make sure that the person on the other side is trustworthy.
The Bottom Line
Cryptocurrency can be good at the same time, bad. It caters to both sides of society. If you are still willing to invest in Cryptocurrency, we would like to take the necessary security measure with your assets before you step into this volatile world.