Bitcoin is an excellent investment historically. Bitcoin has gained almost 31,000% in the last decade. If you had invested $1,000 in Bitcoin 10 years ago, you would now have hundreds of millions. But can Bitcoin keep growing exponentially? Potentially. Bitcoin trading is riskier than conventional investing, but the rewards might be life-altering.
Blockchain powers bitcoin and other cryptocurrencies. Blockchain is a miner-powered distributed ledger system. In terms of computing power, the Bitcoin network is 10-20 times faster than Google's servers.
Controlling 51% of all miners on a blockchain would be difficult, if not impossible. The problem is that, unless you put your crypto in a hardware wallet, you aren't totally safe from malicious hackers.
Bitcoin and other cryptocurrencies are dangerous investments, despite their immutable blockchain. This is not unheard of in bear markets, when Bitcoin might lose up to 90% of its value. However, as more institutions and long-term participants join the market, volatility should reduce.
Next to Bitcoin, Ethereum has the safest blockchain. Then things become tricky. Smaller networks are easier to take over, but less secure. “Security” in crypto is not universal.
Bitcoin is a long-term investment for many. According to some investors, bitcoin will eventually replace gold and fiat currencies. Many investors have lost half or more of their portfolios due to multi-year bear markets in cryptocurrency. Regardless, Bitcoin's price has repeatedly surpassed previous records.
Some crypto traders, on the other hand, perceive cryptocurrency as a quick win. For this reason, some traders will even purchase worthless cryptocurrency tokens.
Short-term traders are more interested in the coin's price history than its usefulness. Like Dogecoin, many short-term crypto investors invest in it because it is cheaper than Bitcoin. These traders purchase Dogecoin for its extreme volatility.
Other short-term traders purchase Bitcoin amid price spikes, intending to ride out the excitement. Some traders may profit from this, but most individuals should simply purchase and keep cryptocurrency for the long term.
If you believe in blockchain technology, cryptocurrency is a terrific long-term investment. Bitcoin is viewed as a store of wealth, and some individuals believe Bitcoin can replace gold in the future. Ethereum, the 2nd biggest cryptocurrency by market value, also offers significant growth potential as a long-term investment.
If Bitcoin is to cryptocurrency what the PC was to computing, then Ethereum would be the internet. Ethereum offers decentralised programmes (dapps) that allow consumers use Ethereum for more complicated financial operations, including as loans, insurance and derivatives. Dapps may also be video games –– running the game on Ethereum enables players purchase and trade in-game stuff to each other via the blockchain.
Before investing in a cryptocurrency for the long-term, make sure you understand what you’re investing in. Find out what issue the cryptocurrency is attempting to address and then examine if there actually is a benefit of incorporating blockchain technology as part of the solution. Some cryptocurrency firms develop a token to quickly obtain money from unaccredited investors, and there is no competitive benefit for their company to function on a blockchain.
Suggested read: What is Cryptocurrency and its Trading Strategy
There are numerous possibilities for where to invest in cryptocurrency. Inveslo is an excellent alternative for novices. You may deposit funds effortlessly. It enables you to purchase crypto using a bank transfer or another cryptocurrency.
Inveslo is among the simplest methods to acquire crypto, particularly if you already have an Inveslo account for trading equities. While the site includes fewer cryptocurrencies than specialised crypto exchanges, Inveslo enables investors to acquire major cryptocurrencies like Bitcoin and Ethereum, as well as a few chosen altcoins.