Did you know that the market size for cryptocurrency will get to $1087.7 million by 2026?
Are you asking yourself the question, “how much should you invest in crypto?”
Investing in crypto can be a great way to make money, but there are also risks involved. It’s important to know what these risks are and how they could impact you before making any decisions.
Keep reading and check out our list of the top pros and cons of crypto investments so you can make an informed decision about whether or not this type of investment is right for you.
Pros Of Investing In Crypto
There are many pros to investing in cryptocurrency. Let’s look at the top 3:
1. Cryptocurrencies Can Offer a High Level of Security
When it comes to investments, security is always a top priority. Cryptocurrencies are digital assets that are encrypted, meaning that they can be much more difficult for hackers to target than traditional investments.
2. Cryptocurrencies Can Be Extremely Profitable
Investing in cryptocurrency can be extremely profitable. In 2017, the price of Bitcoin increased by over 1,300%. If you had invested just $1,000 in Bitcoin at the beginning of 2017, your investment would have been worth over $13,000 by the end of the year.
3. Cryptocurrencies Are Global Investments
Another great thing about investing in cryptocurrency is that it is a global investment. Unlike stocks and bonds, which are typically only traded on specific exchanges in specific countries, cryptocurrencies can be bought all over the world.
This makes them much easier to trade than other types of investments.
Cons Of Investing In Crypto
Of course, no investment is without its risks. Here are 3 potential downsides to investing in cryptocurrency:
1. The Value of Cryptocurrency Is Volatile
The value of cryptocurrency can be very volatile. This means that it can go up or down a lot in price in a short period of time. For example, the price of Bitcoin fell by over 50% in 2018.
This volatility can make it difficult to predict what the price of a particular cryptocurrency will be in the future.
2. Cryptocurrencies Are Not Regulated
Another risk to keep in mind is that cryptocurrencies are not regulated by governments like other investments. This lack of regulation means that there is more risk involved in investing in cryptocurrency.
3. You Could Lose Your Entire Investment
Finally, it’s important to remember that you could lose your entire investment if you’re not careful. Cryptocurrencies are a risky investment, so it’s important to do your research and only invest what you can afford to lose.
Click here to see the conversion rate of Ethereum to CAD.
Should You Invest In Crypto?
So, should you invest in crypto? The answer is yes, but only if you understand the risks involved and are comfortable with the idea of potentially losing your investment.
Make sure to do your own research before investing and consult a financial advisor to see if this type of investment is right for you.
And be sure to check out our blog for more articles like this that will help you make informed decisions about crypto you should invest in.