Is Cryptocurrency a Good Investment?

Many folks see it much more as a long-term than a short gain bet. There are assumptions that Cryptocurrency will one day replace fiat and gold currency. This time will only tell.

As for Cryptocurrencies, the inflated values are due to the survivor bias where the investor is viewing the performance of a handful of Cryptocurrencies as the comprehensive pool of all the thousands of cryptocurrencies that have gone bust.

A few traders are looking at it as a short-term bet and they invest accordingly. Whether you see it as short-term or long-term, you must only invest money after deciding your limits and researching thoroughly which means investing the money you can even afford to lose.

There’s no guarantee with the rise of Cryptocurrency’s value and it can be as irregular as the change in a year or not for a long time.

What is it that never goes out of trend/trolls/twists? The answer is Cryptocurrency.

With trillions of dollars invested in new crypto projects released daily, the question around all this hype persists, ‘Is Cryptocurrency a good investment? When you read the news about scams like the TerraUSD stablecoin or Squid Game token and every other altcoin, and read the numbers of how much investors lose, don’t you wonder whether they took that as a calculated risk? And even with the endless volatility that they experienced, will they continue to risk investing in Cryptocurrency?

In March 2021 when Bitcoin was at its all-time high, almost all the investors thought they’d get filthy rich. Cut to July 2021, Bitcoin prices dropped by 50% and it soared through the year and most of 2022, recording its lowest at $29,000 in May 2022. Yes, a handful of the investors made a ton of money who acted in that span of four months in 2021 but what about the rest?

The trend started in western waters and to tell you the truth, more than 40% of US adults either are somewhat knowledgeable or not at all knowledgeable about this digital form of currency, as per a recent Huobi report.

Even the best-of-the-breed investors are shooting in the dark. And now with rising inflation and higher interest rates, many of you must be finding this riskier than ever.

Well, it is not just you but the major investors and companies too. Coinbase, which made its debut on NASDAQ in April 2021 with a valuation of over $100bn (way higher than even Barclays Bank), fell to $15bn by May 2022. Super uncertain right? In this article, we’ll guide you through these uncertainties and help take a smarter call.

Before that let’s understand what is cryptocurrency.