INSUBCONTINENT EXCLUSIVE:
Even the smartest investor cannot wish away the risks associated with this new-age industry.The cryptocurrency market has come a long way
since the first coin, Bitcoin, was released in 2009
Over the past two years, it has seen a rapid rise in value and attracted unprecedented attraction
Though a highly volatile industry, new investors have shown an increased willingness to bet on it to grow their wealth quickly
Some have reaped amazing benefits too
Financial experts say cryptocurrencies, like most other investment tools, demand patience, and a long-term investment strategy
Still, even the smartest investor cannot wish away the risks associated with this new-age industry.So, how useful is then the cryptocurrency
industry as an investment avenue? Despite the risks, cryptocurrency can help you earn much more quickly than most other such tools
Here are a few points that can help in determining whether cryptocurrency is useful or not:1
ResearchBefore investing any money, read and update yourself about it and how it functions
A key area to focus on is exchanges, which facilitate crypto transactions
Most of the information needed for a potential investor will be available on the website of an exchange
But investors can also get in touch with those more experienced than them.2
Own your moneyApart from being a long-term investment option, the cryptocurrency industry works on the principle of decentralisation,
meaning they do not need the involvement of the government or any other entity
Investors keep direct control over their money.3
Market hoursUnlike traditional stock markets, trading in these coins continues uninterrupted 24x7
There are no opening or closing hours
Investors are offered the flexibility to trade from anywhere and anytime.While these things work in favour of cryptocurrency, there are some
risks that need attention.4
UnregulatedThe biggest question lurking over this industry is it is unregulated
That is what allows investors to have direct control over their money also makes it vulnerable
Most cryptocurrencies are not backed by financial institutions
Though some countries have begun to adopt it and thus created some sort of a safety net.5
New industryThe next problem is it is a relatively new industry
Not many people know about it and even less have invested in it
Most people are not that familiar with the terms or the technology used in this industry.
