Can cryptocurrency assets be used as investments?
maybe we can go back a little bit this time. The reason I discuss the title this time is because many people are still confused because they see the cryptocurrency market getting more popular lately. But behind the current popularity of cryptocurrencies, there are also many people who think that investing in cryptocurrency has a big risk compared to the stock market.
Another reason people are reluctant to invest in the cryptocurrency market is because cryptocurrencies have not been fully accepted by some countries as an alternative payment. Then if so, can cryptocurrency be used as an investment?
Responding to the question above, whether it is feasible or not depends on the person who wants to invest. However, you need to know that the risk of investing in the cryptocurrency market is higher than the stock market. in the stock market if you want to invest, maybe the first thing you see is the name of the company, in which sector, whether you have debt or not, how the company is managed and so on. This is certainly different from the cryptocurrency market. In the cryptocurrency market the first thing you see is how famous a coin is, how much supply, what project and most importantly who is the coin’s backer.
Actually investing in the cryptocurrency market is a gamble where if you invest then you will be ready to lose the money you invested. That’s why I need to emphasize if you intend to invest then you need to understand how the investment itself is, what is the purpose of your investment.
This is a condition if crypto assets are worth investing in in the future.
Transparent crypto laws
for now many people are reluctant to invest in the cryptocurrency market because the laws governing cryptocurrency exchanges and assets are not yet clear and if at any time the law completely prohibits the trading and exchange of cryptocurrency assets, it is possible that investment assets will not be able to be traded.
Accepted as alternative payment
maybe in some countries already accept cryptocurrency assets (especially BTC) as payment like current FIAT currencies such as the United States, Canada, Australia, European Union and recently El Salvador has also accepted digital currency. If more and more countries in the world adopt digital currencies, it is not impossible that cryptocurrency assets are worthy of investment and have even higher popularity.
As a counter to the explanation above, you need the following considerations and suggestions if you invest in the cryptocurrency market
1. Checking the risk profile, are you ready to accept the risk of losing some or even the entire portion of your investment funds? Or do you prefer stable, non-fluctuating yields and safe capital?
2. If you really want to try to buy cryptocurrency assets, make sure the source of funds is not from an emergency fund or taking accumulated investments that are already running for other financial purposes, let alone debt. Check if you lose this fund, will it interfere with your financial condition?
3. Perform cryptocurrency asset transactions only through cryptocurrency asset traders who obtain approval from the Commodity Futures Trading Regulatory Agency so that the money you deposit into the securities where you invest is safe.
