Single Post

Is Crypto A Good Long-Term Investment?

Bitmex margin trading

The cryptocurrency market has been growing at an exponential pace and making a number of people very rich. But is it still possible for you to get rich?

Should You Invest You Invest In Cryptocurrency?

The current bear market has led some people to believe that the crypto market is destined to fail. However, what people fail to remember is that the crypto market has slumped three times in the past, and on each occasion, it recovered with a bang.

Crypto Long-term

Therefore, this is the right time to invest long-term in the crypto market as it is gearing up for a big comeback. However, I will advise that you analyze the pros and cons of trading cryptocurrencies before jumping into the deep end.

Pros and Cons of Trading Cryptocurrencies Pros: Huge Profits to Be Made

Compared to other existing markets, the crypto market is considered to be very volatile. Therefore, crypto investors have the opportunity to make huge profits as data shows that some coins have generated as much as 100,000% return to investors for its early investors.

Con: It Is Also Easy To Lose

Conversely, the unstable nature of the crypto market also majorly contributes to the risks involved in crypto investments. Prices of cryptocurrencies are almost impossible to predict, therefore, it is not uncommon to see investors incur huge losses.

Pro: No Investment Fund Limits

The cryptocurrency market is opened to anyone, you do not need to be a millionaire before you can take a seat at the table. A large percentage of altcoins are valued at a price less than one US dollar, also, bitcoin which is priced $6,500 can be divided into 100,000,000 pieces. Therefore. It is possible to buy $1 worth of bitcoin.

Con: No Guarantees on the Viability of a Coin

Many believe that cryptocurrency would be one of the major medium for transferring value in the future. However, there is no guarantee that any of the top coins will still retain its dominance when the crypto market finally reaches its pinnacle. This is more evident in lesser-known coins, therefore, the sustainable viability of any coins is purely based on speculations.

Pro: Trading Cryptocurrency Is Easy

One of the contributing factors to the growth of the crypto market is its accessibility. Investors can track his investments, monitor price patterns, and trade cryptocurrencies with smartphones. Therefore, investing in the crypto market is one of the easiest investment options available to individual investors.

Con: Security Risks

Security remains one of the major factors that have impeded the mass adoption of cryptocurrencies. There have been countless cases of crypto exchange hacks and wallet scams. And in many of these cases, it has been difficult to identify the culprits.

Pro: Market Liquidity

It bodes well that crypto investors can cash out on investments at any chosen time. Contributing to this is the fact that some merchants have started accepting crypto as a means of payment for goods and services.

Con: Majority Of Cryptocurrencies Are Still Faced With Scalability Issues.

A large percentage of existing cryptocurrencies still depend on the proof-of-work- verification mechanism. Therefore, it takes a longer time to process transactions, which means that traders would likely lose the opportunity to capitalize on price surges or slumps.

Pro: The Crypto Market Is Powered By Accessible Information

There are lots of information resources dedicated to crypto trading, which has simplified the learning process for new investors. In addition, there are a variety of online forums, crypto communities, and Telegram groups that are willing to help new investors find their feet.

Current Crypto Market: Is It Good To Invest Now Or Wait?

As earlier mentioned, the crypto is believed to have reached its tilting point. However, experts have continued to predict that there will be a significant jolt in prices before the end of the year.

So will it be wise to invest your fund during these bearish run, or will it be better to wait out the storm? I believe that now is the time to invest in cryptocurrencies as there are signs indicating that the crypto market is heading for another bullish run in the near future. Here are some of the signs:

Improved Crypto regulations

A recent report revealed that an anti-money laundering task force is planning on releasing a standard for cryptocurrencies, In addition, governments are increasingly interested in setting up frameworks for ICOs, as such, and the number of low-quality coins created will be immensely reduced. Consequently, these regulations will advertently reduce the risks (crypto scams) associated with cryptocurrencies and fast-track the adoption of cryptocurrency as a viable investment option.

There Is So Much Crypto Information Available To the Crypto Community

The crypto space is constantly being pumped with information that will help crypto investors navigate the crypto market. As such, investors can easily analyze and research potential crypto scams.

In addition, there are platforms that are dedicated to providing live trading signals to investors, which is critical to the decision-making process of crypto investors. All these new introductions to the crypto space make crypto trading more attractive and easy for new investors.

Cryptocurrencies Are Resolving Their Scalability Issues

I did mention that one of the limiting factors for the mass adoption of cryptocurrency is its slow transaction processing time. Therefore, new and existing cryptocurrency development teams are working extensively to resolve the scalability issues of cryptocurrencies.

For example, Ethereum is planning on implementing an upgrade dubbed Ethereum 2.0 which will utilize sharding, eWasm, and proof-of-stake to resolve ethereum’s scalability issues. In addition, Ripple’s payment network has been revealed to process transactions faster than PayPal. Clearly, these developments will aid the growth of the crypto market.

The Emergence of Insured Cryptocurrency Custodial Services

There is a number of big-name firms weighing up the possibilities of owning a custodial service platform for cryptocurrencies. Prominent names that have been linked to custody products include Coinbase, Bitgo, Citigroup, and Goldman Sachs. The creation of custodial products tailored to the crypto market will increase adoption of cryptocurrencies by institutional investors.

The Emergence of a Cryptocurrency ETF

There has been over 10 bitcoin ETF applications rejected by the United States Securities and Exchange Commission SEC in 2018.

However, it is becoming clear that it is only a matter of time before one of these applications is accepted.

Even, many in the crypto community believe that 2019 is the year a Bitcoin ETF will be approved. And when that happens, I bet that you wouldn’t want to be on the sidelines as it is very certain that a bitcoin ETF approval will trigger a bullish run.

Conclusion

A Long-term crypto investment will generate a huge return for an investor because there are lots of factors contributing to the growth of the crypto market.

One of the factors that were mentioned is the availability of platforms that are dedicated to feeding investors with live trading signals that will help them make efficient investment decisions.

One such platform is verifiedcryptotraders.com. You can simply sign up to become an informed long-term crypto investor.

Scroll to top