Everyone is looking for the most, in demand digital commodity “The Cryptocurrency”. This digital currency had proven itself in last 5 years that it contain the huge potential that is to be released soon. In last three years it had the average returns of 700%, which proved it had lot to be explored for future.
1. Risk, Return Trade off
Investment in cryptocurrency can be made in three ways:
· Holding on to Cryptocurrency: The cryptocurrency rates keep on fluctuating. One can buy the crypto coins and sell them at later time when market is at its boom. To be a safe player make start with small chunk of money. Moreover, be secure by keeping your coins in the encrypted wallets.
· Trading: It simply means buying and selling of crypto coins. Demand and supply mechanism is used to estimate the price of cryptocurrency. However, the constant eye on your investment in needed while indulging in trading.
· Investing in Bitcoin mining: It involves the funding of miners who solve blockchains to extract crypto coins. Once it’s done you earns your part of share as per the terms and conditions.
2. Positive Trends
The year 2017 saw the cryptocurrency market surging to 1200%. This means that at the beginning of the year 2017, these digital assets were pegged at $17.7 billion. At the end of 2017, this figure stood at $230.9 billion.
3. It is a Limited Resource
As we know bitcoin is the oldest cryptocurrency but it has only 21 million Bitcoins that can be mined at overall level.
4. It is resistant of any Monetary Policy
They are not affected by the concept of inflations and recessions as they are free of any monetary policy. Cryptocurrencies are free from the impact of Government's policies on the currency. However, the concerning point occur when government bans these crypto coins as the accepted method of payment.
5. Easy to Exit
Cryptocurrency has huge market demand, one can easily sell out their coins and can get out of the business. They do not have any kind of penalties or lock-in periods for investment of cryptocurrency. This hassle-free investment basically means that you have nothing to lose even if you exit out early.
At initial stage of investment in Cryptocurrency one need guidance and expert’s advice. One should always check for the safety while selecting the exchange. Choose wisely and start with investing 10% of the amount that you decide to save every year. You will surely not be disappointed.