Few investments are as divisive as cryptocurrencies. While some people are convinced they will change the world, others strongly believe they will crash.
Even the experts disagree on whether it is a good investment or not. Like Elon Musk and Mark Cuban, some billionaires have lent their support to cryptocurrencies. On the other hand, like Warren Buffett and Charlie Munger, others have long criticized it.
Cryptocurrencies are indeed volatile, as the ups and downs of the past year have proven. But there are several reasons why one can continue to invest in bitcoin, ethereum, and cryptocurrencies in general.
It Could Be The Next Big Deal
Nobody knows what the future holds for cryptocurrencies, and it is true that they could end up failing. But it could also have real use one day and revolutionize a variety of sectors. Even if crypto itself does not become a standard form of payment worldwide, there are other paths to success.
Take, for example, blockchain technology, which is the basis of cryptos. The Ethereum blockchain, in particular, is home to many applications, including non-fungible tokens and decentralized finance. The Ethereum and Bitcoin networks also host smart contracts, which are digital agreements that have the potential to revolutionize the legal industry.
You Can Regret Not Having Invested One Day
Crypto is a risky investment. Some analysts predict it will either be a massive success or a massive failure, with no compromises. When considering these two options, perhaps one should take the risk rather than potentially missing out on something big.
Before investing, think about all the possible outcomes. One could invest now and either make money if the crypto succeeds or lose their investment if it fails. Or one could choose not to invest and avoid losing money but miss out on potentially lucrative returns.
You may have to take the risk of losing money than live with the regret of not having invested if the cryptocurrency prospers. Of course, you cannot know if you will really succeed. But if this is the case and we choose not to invest in it, we will regret this decision for a long time.
It Makes The Rest Of Your Portfolio Stronger
There’s no denying that cryptos are a risky and extremely volatile investment and highly speculative at this point. Even if one may think that there is a chance that they will succeed, it is not a certainty.
For this reason, invest (today) only a small amount of money that you can afford to lose, and keep a portfolio of solid long-term investments. That way, if cryptocurrency investments aren’t performing well, they won’t sink your entire portfolio. Also, by continuing to invest consistently in areas other than cryptocurrencies, one can ensure that savings will continue to grow over time, regardless of how the cryptocurrency market develops.
By taking precautions, it is possible to reduce risk when investing in cryptocurrencies. However, it’s not the proper investment for everyone, and that’s okay. Considering your personal preferences and risk tolerance will make it easier to decide if this is the right choice for you.
When venturing in trading make sure to read the brokerage reviews such as HubbleBIT Review. In whatever asset you invest, the choice of the trading intermediary is of utmost importance for success.
