Cryptocurrency is something a lot of people are interested in but are afraid they will lose money. It is a market in which you cannot be sure whether you will profit. Additionally, you need to know where you are putting your money. Yes, you can get rich off crypto and lose a lot of money. Here, we look into cryptocurrency and whether it is worth the investment in 2022. Let’s get started!
Is It Safe?
Many things don’t make cryptocurrency safe. Furthermore, it is relatively new to the world so it is something that is still not adequately regulated. Additionally, one thing is that exchanges are vulnerable to cyber-attacks and hundreds of different cryptocurrencies out there. Many questions are asked about cryptocurrency. It has led to a lot of governments questioning this cyber currency.
What Are The Risks Of Cryptocurrency?
Once upon a time, stock exchanges were known for cyber attacks and being hacked into. Now, cryptocurrency seems to be more susceptible to these types of attacks. The vulnerability of cryptocurrency has led to millions of pounds lost. It has influenced many investment fraud lawyers to tackle the issues that cryptocurrency investors face.
If you want to invest in anything that is relatively secure then stocks will be your best bet as these are regulated. Cryptocurrency is not regulated therefore, it leads to more of a risk. Nonetheless, many cryptocurrency exchanges exist that make trading a lot easier. One of those is coin base which is probably the most popular. Some of the most popular cryptocurrencies are on this site which is why it is so popular.
Despite many people preferring those platforms such as Coinbase, there are some negatives. For example, Coinbase can freeze assets if a government has requested it. Another thing that could happen is the exchange could go bust, leading to losing your assets. The chances of this happening with Coinbase are small however, you should never get too complacent with your assets. Again, if this happens, investment fraud lawyers might be able to help although it isn’t guaranteed.
Something that hardcore cryptocurrency owners do is store their assets in hardware wallets, also known as “cold storage”. Moreover, “cold storage” also has its issues. For example, to access your cold storage, you need a private key. If you lose this private key, you will be locked out of your storage unit.
One of the most significant issues with cryptocurrency is that there are no guarantees you will gain. There is every chance that you could lose. Few cryptocurrencies will succeed in the market as it stands.
Is Cryptocurrency Still Common?
Despite the crypto crash this year, cryptocurrency is still common. Many news broadcasters are keeping up with the latest news. Many people are talking about crypto on the internet, especially on Twitter. Reddit is another platform for users to discuss the news of crypto. You could say that cryptocurrency is more popular than ever, with companies directly promoting the cyber currency. Block, Tesla, and PayPal are all linked with cryptocurrency. Tesla is one of the biggest companies in the world and they announced that they purchased $1.5 billion worth of Bitcoin.
Is It a Good Long-Term Investment?
It is still an ongoing debate about crypto and whether or not it is a long-term investment. Both bitcoin and Ethereum have grown massively since they first launched. There have been a few cryptos crashes along the way but they seem to have restored their value. Whenever the crypto market crashes, people see this as a good time to invest because they know it will return. The past few times the market has crashed, both bitcoin and Ethereum have managed to get back to their original value and increased.
Bitcoin
There are a lot of people out there that own bitcoin. It is the most common and is one that businesses are investing in. Furthermore, there are other cryptocurrencies out there that people invest in; however, Bitcoin is one that people are most comfortable with. It is the first global currency and is something recognised by many countries around the world.
Ethereum
Ethereum is another well-known cryptocurrency that is becoming more common in the news. Nevertheless, the value of Ethereum is much lower than Bitcoin although there is no reason it can’t reach the numbers that Bitcoin has. The more established cryptocurrency becomes, the more Ethereum will become, which makes it a good long-term investment. Nonetheless, investing in crypto is still a massive risk financially.
The Cryptocurrency Crash in 2022
Just like the stock market, cryptocurrency took a massive hit this year, with many people losing money. However, this isn’t anything new with the crypto market and in fact, has happened a couple of times before. Moreover, the market managed to restore its original value and surpass its highest value.
Mainstream Companies That Have Invested In Crypto
Earlier in the article, we mentioned some of the crypto companies which invested in crypto. Tesla has probably been the most vocal about investing in Bitcoin but there are many others as well. Some of the companies that have announced that they have invested in Crypto include MicroStrategy, Block Inc, Riot Blockchain, Voyager Digital, Galaxy Digital Holdings and many more.
These multi-billion dollar companies have invested in these cryptocurrency accounts for a reason. They have faith that this is the future of the world which is why they have put so much into them. However, due to us not knowing how far crypto can go, people are unsure whether it is a worthy investment.
Summary
As you can see, there are many issues with cryptocurrencies. Furthermore, you could argue there are more negatives than positives. It is a gamble to invest in cryptocurrency, just like it is with the stock market. If you are willing to take that risk then do it. However, ensure that you invest in this at the right time. If you do not trust your abilities for investing in crypto, you should consider a crypto broker. Many businesses are made to invest your money for you. Yes, they will take a small pay cut but