Should People Invest In Cryptocurrency?

Snapshot:

•  How to invest in cryptocurrency? 
•  How to learn cryptocurrency as a beginner?
•  Top 5 Global crypto exchanges

There is no doubt that digital currencies have shown tremendous growth in recent years. Spurred on by the incredible growth of Bitcoin (BTC) and ether (ETH), the field of cryptocurrencies has only continued to expand.

Cryptocurrencies have been described as a transformative technology that could revolutionize a number of industries.

A cryptocurrency (or crypto) is a non-physical, digital and decentralized currency that is issued by private systems and remains out of the purview of the government. It is a peer-to-peer system that can enable anyone anywhere to send and receive payments.

Before we answer whether you or anyone should invest in cryptocurrency let’s understand what is cryptocurrencies, where and how to invest in cryptocurrencies, and whether these investments are safe. 

What is cryptocurrency

The blockchain technology underlying bitcoin and other cryptocurrencies have been hailed as a potential gamechanger for a large number of industries, from shipping and supply chains to banking and healthcare. By removing intermediaries and trusted actors from computer networks, distributed ledgers can facilitate new types of economic activity that were not possible before.

Read more on what is Blockchain? and how the crypto industry is leveraging it. 

This potential makes for an attractive investment to people who believe in the future of digital currencies.

Another common reason to invest in cryptocurrency is the desire for a reliable, long-term store of value. Unlike fiat money, most cryptocurrencies have a limited supply, capped by mathematical algorithms. This makes it impossible for any political body or government agency to dilute their value through inflation.

How to invest in cryptocurrency in India 

Cryptocurrency has become a lucrative financial asset for traders as well as Investors. Many investors especially in India have shown a tremendous interest in cryptocurrency because of its steady returns despite the volatility factor.

To start your crypto journey there are many crypto exchanges available across the globe. However, not all of them are genuine and efficient. Investing in cryptocurrency is as simple as downloading an application for your smartphone. The steps that a user needs to follow to start investing in cryptocurrency are: 

Read about the steps to invest in cryptocurrency in India in detail. 

How to learn cryptocurrency as a beginner 

Once you are sure what is a cryptocurrency and what are the advantages of investing in cryptocurrency, it becomes important to decide the source of knowledge. There are various free resources and paid resources to learn the basic as well as advanced cryptocurrency and blockchain. While a few courses offer a valid certification, there are many resources that are not as useful. Here is what a beginner can do to learn more about cryptocurrency. 

Here is everything that you need to know as a beginner on How to learn about a cryptocurrency. 

Top 5 Global crypto exchanges 

After the sudden spike in interest around cryptocurrencies, the first thought that comes to the investors’ minds is where to buy, sell and trade these cryptocurrencies. The place where you can buy, sell as well as trade your favorite tokens are crypto exchanges. These online services often work similarly to a stockbroker, giving you the tools to buy and sell digital currencies like bitcoin, ethereum, and dogecoin. The best cryptocurrency exchanges make it easy to buy and sell the currencies you want with low fees and strong security features.

 The top 5 Global Crypto Exchanges according to Market Capitalization are as follows: 

We have discussed the Top 5 Global crypto exchanges in detail.  Learn about the best crypto exchanges where your money is safe and secured. 

Should people invest in cryptocurrency? 

While many supporters believe that digital currencies could become part of daily life, the cryptocurrency market is currently dominated by speculative trading. Studies of blockchain activity show that exchange trades remain the most prevalent use for cryptocurrencies—and account for far more economic activity than ordinary trades and purchases. 

As a new technology, some speculative behavior is to be expected in the cryptocurrency space, especially as blockchain technology matures. However, new investors should be wary of falling into psychological traps such as herd instinct, Fear of Missing Out, or the Greater Fool Fallacy, which can make all the difference between a calculated risk and a foolish one.

One of the most impressive and unique aspects of cryptocurrency is also a significant liability. Since cryptocurrency does not rely on a central intermediary, it falls on the user to safely store the cryptographic keys which control their blockchain address. Investors who choose to explore the digital currency space should be aware that a number of special security measures are absolutely necessary, and that even those measures may not sufficiently protect their holdings against hackers working constantly to refine their techniques.

Summing it Up!

While crypto trading is the current rage and may even yield potentially high returns, one must understand that cryptocurrency is an incredibly speculative and volatile buy. The market is still in its infancy. Investing in something that’s new comes with challenges, so she must be prepared for ups and downs, including some dramatic swings.

Stay updated with the latest cryptocurrency news around the global community with CoinDCX. Start your blockchain and cryptocurrency learning with DCXLearn, India’s simplest and complete cryptocurrency course. Start your investment journey with CoinDCX, India’s simplest and safest bitcoin and crypto app in India.

Disclaimer: It is advisable to dive into an investment after conducting thorough research. The article is not aimed at any financial advice.