Why you should (or shouldn't) invest in cryptocurrency.

When it comes to cryptocurrency, there are plenty of reasons to be both bullish and bearish. Here are a few reasons why you should (or shouldn’t) invest in cryptocurrency.

The first reason to invest in cryptocurrency is the potential for huge gains. While there’s always the potential for loss, the upside potential in the cryptocurrency market is much higher than in traditional markets. For example, Bitcoin, the most well-known cryptocurrency, has seen its price increase from around $1,000 in early 2017 to over $19,000 by the end of that year. That’s a return of over 1,900% in just a few short months. Of course, not all cryptocurrencies have seen such astronomical gains, but many have still outperformed traditional investments. Another reason to invest in cryptocurrency is the possibility of earning a passive income. Cryptocurrencies can be mined, and the rewards earned from mining can be used to purchase more cryptocurrencies or used to cover mining costs, effectively earning a passive income. Additionally, some cryptocurrencies offer staking rewards, which are similar to interest payments, for holding onto the coins for a set period of time. This too can provide a passive income stream.

There are also a few reasons why you might not want to invest in cryptocurrency.

One of the biggest dangers is the potential for fraud and scams. Because cryptocurrencies are largely unregulated, there have been a number of scams and frauds perpetrated against investors. For example, there have been a number of “pump and dump” schemes where unscrupulous investors buy up a large amount of a low-priced cryptocurrency then artificially inflate the price before selling off their holdings and leaving investors holding the bag. Another big risk is that of theft or hacking. Because cryptocurrencies are stored in digital wallets, they are susceptible to hacking and theft. In fact, this is one of the biggest risks facing investors in the space. If you do choose to invest in cryptocurrency, it’s important to store your coins in a secure wallet and be aware of the risks involved.

Cryptocurrency is a risky investment, but one with huge potential rewards. If you’re thinking about investing, be sure to do your research and only invest what you can afford to lose. #cryptocurrency #crypto