Crypto may be all the rage, but is it the right investment for you? It largely depends on your motives and how you intend to invest your money. This post lists 5 reasons (and 5 reasons not) to get involved and assist you in deciding whether to invest in cryptocurrencies or skip.
5 reasons to invest in crypto
You want to grow your money fast:
Crypto can offer faster and larger returns than many other forms of investment. If you don’t want to wait years to see your money grow, crypto could be a good place to invest your money.
You want to beat inflation:
Saving up money can become much harder during periods of high inflation. Cryptocurrencies are decentralized, and their value is not affected by banks and regular inflation rates. As a result, it can be a way of beating inflation rates.
You want to be able to trade around the clock:
Investments like trading stocks are limited to 9 to 5 weekday hours. You can trade cryptocurrency at any time. If you’re too busy from 9 to 5 on weekdays, crypto could be a better place to put your money as you can more easily invest in your free time.
There are things you want to buy with crypto:
Some people forget that cryptocurrencies are primarily currencies and that you can buy various products and services. Some products, like NFTs, can only be purchased with crypto. Investing in crypto can be fun if you are interested in these products.
You’ve done your research:
You’ve already looked into the best crypto exchanges and checked out prices using online tools such as these XRPUSD charts; it could be a sign that you’re ready to invest. Educating yourself will ultimately help you to be successful.
5 reasons NOT to invest in crypto
You’re looking for a low-risk investment:
Cryptocurrencies are one of the riskiest investments available – more so than stocks or forex. Why? Because they are so volatile. You should only invest in crypto if you are willing to take this risk – do not invest money you’re not prepared to lose to this.
You don’t want to be too hands-on:
While it’s possible to invest in something like stocks and only check in every few months, cryptocurrency requires a more hands-on approach. You should constantly check in to see how your investment is doing because prices can change without notice. If you’re looking for an investment that you can leave and forget about, crypto is not the solution.
You want to invest in something tangible:
Some people like to invest in something that they can physically touch. Cryptocurrencies are purely digital and may feel too abstract for some people.
You’re not tech-savvy:
While you don’t have to be a computer expert to trade crypto, you require a certain level of technical know-how to trade crypto. If you tend to shy away from online banking or dealing with financial services online, you may want to give crypto a miss.
You don’t understand crypto:
Can’t get your head around how cryptocurrency works? If terms like ‘digital wallet’ and ‘gas fees’ perplex you, it may be better not to invest. You must understand what you’re investing in; so you don’t make mistakes.
Should you invest in cryptocurrencies?
Cryptocurrency is the perfect investment for those willing to take on the risk and understands how it works. For those that want an investment that’s stable and tangible, crypto may not be the best investment.
