Why Should You Trade/ Invest In Cryptocurrencies?
Previously we have discussed why cryptocurrencies are becoming a popular investment option. But should you invest too? Let us discuss:
Cryptocurrencies can be bought and sold through online exchanges. Hence, more and more people around the world are investing in them.
Here are a few reasons why they are becoming a popular investment option:
- It is easy to invest in cryptocurrencies. You can open a secure account in just a few minutes and buy a cryptocurrency using a credit or debit card.
- Cryptocurrency like Bitcoin is expensive (₹ 3,154,592.76 as on 14th Jan 2022), and hence not many people can afford to purchase it. The good news is you don’t have to shell out so much to participate in the price movement of a cryptocurrency. You can buy a portion of a coin. Hence, people can invest some amount regularly (like a mutual fund SIP) and build up a portfolio over time.
- Some cryptocurrencies, such as Tezos and USD coins provide active rewards to the holders of the coins.
- You can transfer cryptocurrencies to someone else easily or use it to buy or sell goods or services – something that you cannot do using bonds and shares.
Trade or invest in cryptocurrencies only if you have money that you can risk. The cryptocurrency market is extremely volatile. Buying and selling at the wrong time can lead to a significant loss.