Is It Worth Investing in Cryptocurrency: Pros and Cons
Experts, analysts of the cryptocurrency market, and specialists in the banking sector still cannot say with absolute certainty whether it is reasonable to invest in cryptocurrency. However, some enthusiasts believe in the value’s growth of not only bitcoin but also new crypto assets (Fuji, Chia, and others) in the future. Many are making a profit now.
Using currency is gaining momentum because of the large number of useful ways to implement it. The number of users who have linked their business with crypto assets is growing steadily. In this article, we talked about the advantages and disadvantages of cryptocurrency, how to choose the right digital assets, so that you can decide whether to invest in them.
Features of investing in cryptocurrencies
First, let’s figure out why user confidence in digital assets is growing. This is facilitated by:
1. High investment capital of cryptocurrencies and their profitability.
Since the beginning of May, the most popular cryptocurrency, bitcoin, has risen in price by almost 100%. But other cryptocurrencies also have grown in profitability over the past few months. Both experienced market players and beginners showed profitability of several hundred percent. Digital coins such as Holo (+ 376%), Binance Coin (+ 488%), and Ravencoin (+ 308%) showed high results.
2. Expanding the scale of the use of cryptocurrency, including at the state level.
Currency can be transferred directly in any quantity and at any distance without regulatory authorities and so that no one knows about it. In addition, new players and companies are regularly replenishing the cryptocurrency market, because these assets do not depend on the political situation in the country. Many large online stores have used bitcoin, this allows the asset to develop at a rapid pace.
3. Availability. Financial machines are being installed to carry out cryptocurrency payments.
4. Security. We also associated the development of cryptocurrency with the use of new technologies and tools for storing funds. Hot and cold wallets are being upgraded, mining is developing, and only cryptocurrency owner has the key to the wallet.
Many experts predict that the value of cryptocurrencies will rise despite their cons. The disadvantages include possible periods of “stagnation”, when the position of the cryptocurrency asset does not change or falls by several points. It is also worth noting that a temporary decrease in quotations for short-term investments will also be completely unprofitable. But long-term investments bring significant benefits to the investor and rarely fail, so stockholders continue to invest in cryptocurrency.
Even if we are talking about a new Fuji company, in the long term, with a fairly large amount of money, investing in cryptocurrency will benefit its user. If you invest even a small amount wisely, assess the risks, and choose the right cryptocurrency, you can earn additional funds.
What cryptocurrency to invest in?
To understand which cryptocurrency to choose, you first need to study their current quotes. The second factor that we pay attention to is the reliability of a digital asset. The third is the analysis of all the documentation (White Paper). There are fake currencies that are created by companies and look like pyramid schemes. If we talk about verified assets:
Bitcoin is one of the most liquid cryptocurrencies. Investors who invested their funds during the existence of the asset received over 120% of annual profits. There are enough Bitcoin trading platforms, you just need to open a wallet and choose a suitable platform.
Ethereum has shown steady development since its inception. Users can independently generate blockchain applications and conduct financial transactions. Experts predict that the asset’s value will soon increase 10 times.
Among the newcomers, there is also something to look for. We have already mentioned Fuji crypto crowdfunding platform. They built the FJT coin on the powerful blockchain Tron and now this coin serves to simplify the conduct of business between platform participants wherever they are.
Being a kind of aggregator of all payment methods and means for both investors and start-uppers, the FJT token covers currency differences completely, their rates, and the geopolitical situation in countries. We can find more useful information about this asset on the company’s website https://fujico.org/, Twitter https://twitter.com/fjtfuji?s=11, or Telegram https://t.me/fuji_company channel. The coin is just developing, which will allow investors to catch rate fluctuations and have time to buy FJT at a lower rate and sell at a higher rate.
Whether you are ready to invest in crypto assets or not, the rule is one — it is better to study the crypto market well, understand its dynamics and the dependence of the rate of one or another cryptocurrency on various factors, and only then invest. It is important to adhere to this rule if you don’t want to lose inverted funds.