We all want financial stability, and smart people know the golden rule "Always have multiple sources of income." In addition to work, you need passive income, and this is where investments come into play.
Nowadays, only a lazy person has not heard of cryptocurrency. NFT, Bitcoin, Ethereum are all discussed even in traditional media. There are different opinions in society: from "paper money is dying" to "cryptocurrency has 2-3 years left". How to understand whether it is worth investing in crypto, and whether it is right for you? To understand, read the article to the end.
Pros of investing in cryptocurrency
Let's start with the good.
Do you have access to the Internet? Congratulations, you are a potential crypto investor. From an eleventh grader in Texas to your grandfather in the village, anyone can buy digital assets. If you are considering shares, they are less accessible (especially to residents of Ukraine), and it is more difficult and longer to invest in them. To buy bitcoin, you just need to go to your Any.Cash wallet and... buy it.
Consider the difference in the value of BTC over the last ten years (2013-2023). In 2013, Bitcoin was already on its feet and worth $1,000, in 2023 — almost $23,000. For a moment, this is an increase of 2,200%, and if you managed to sell on the high street for $68,000, then no comments here. You are insanely rich.
3. A rapidly developing industry
Cryptocurrency is a young industry. It is just finding its place, but many experts are sure that it has the future.
"I really think Bitcoin is the first [digital money] that has the potential to do something, like change the world," — Peter Thiel, co-founder of PayPal.
All in the same ten years, cryptocurrency has turned from something "incomprehensible" into a currency that can be used to pay both online (in meta universes, for example) and offline (stores, cafes, etc.).
Cons of investing in cryptocurrency
But there is another side of the coin.
Yes, cryptocurrency can bring huge profits, but it can also cause big losses. In 2021 you could buy ether for $3,000, and by 2022 it would cost $1,000.
Digital assets are volatile (except for stablecoins), so remember:
1) Invest only the money you are ready to lose.
2) Study, study and study again.
The success of your crypto investments depends only on you, so always first understand the nature of a specific asset, and then invest.
Yes, you can be cheated anywhere. For this, it is not necessary to deal with cryptocurrency, but this area has its own peculiarity. If you are cheated on the Internet, and money starts disappearing from your account, the bank can return it to you. If you are scammed on the Internet and your cryptocurrency is stolen, you will simply lose it. You are solely responsible for your digital assets. That's why there are so many scammers, and that's why you need to be much more careful.
Where to start: tips for beginners
If you decide to understand the issue, then catch a few tips.
Understand what cryptocurrency is, what types there are, what blockchain is and all the basic concepts. YouTube videos (the guys from Incrypted) or useful articles (like the one you're reading now) will help you.
2. Decide on a goal
Why do you need cryptocurrency? Is it passive income or do you want to do it professionally? How much money and time can you devote to this?
Go through these questions and you will understand in which direction you should move.
3. Decide on a platform that is convenient for you
Where you will buy cryptocurrency, where you will store it - all this is important, because only you are responsible for security.
For beginners, we recommend the Any.Cash crypto wallet. This is a convenient Telegram wallet with the most important functions: exchanges, withdrawals, transfers. It has a simple interface, low fees and works with major currencies: BTC, ETH, LTC, USDT, EUR, USD, UAH, KZT.
We can't make the decision for you, but we hope the article has set you on the right path. Choose what suits you.