Is it a good investment?
Bitcoin has been the first thing that comes to people’s minds when cryptocurrency is mentioned. Bitcoin is the leading cryptocurrency in the market today. However did you know there are over 6000 cryptocurrencies in existence today?
Ever since Bitcoin started hitting record highs and trading at high prices, people have been in a rush to start mining and buying Bitcoin and other cryptocurrencies. While most people look at them as a great investment, most financial experts maintain that it’s not an investment.
The reason for this is, their prices tends to fluctuate a lot. Therefore it is looked at as a speculation. It is like trading with gold or silver in the markets.
Why do people buy cryptocurrency?
Cryptocurrency was never intended to be an investment. It was created as a medium for exchange. It was to help in the trade and exchange of goods and services between people and businesses.
By using cryptocurrency it would cut off the middleman like banks and one would pay a lowered transaction fees. It also provides an amazing layer of security that can allow transactions to be anonymous.
However, we have seen cryptocurrencies like Bitcoin hit the high price of $20,000 and then go down to $3,000. The fact that it can hit such high prices encourages people to buy cryptocurrency. However, instead of transacting with them, they usually end up keeping them waiting for the prices to hit a high and then sell them for profit.
It is possible to make a huge amount of profit from this alone. If you want to get started in the cryptocurrency trading or mining business, it is advisable to do some research on the topic.
Make yourself familiar with the terms used and know which sites to buy your cryptocurrency from. Beware of online scammers. Only use websites with a good reputation to buy cryptocurrencies. Click here to read on mistakes most online businesses make.