The Good, The Bad And The Ugly Of Crypto Investing: By Financial Analysts

Get ten people that have invested in cryptocurrencies in the past in a room and ask them about how their experiences were. 

Chances are, you are going to get different answers from everyone. 

While some will laud it as the best thing that could have ever happened to them, others would rue the day when they invested their hard-earned money into something volatile. 

With cryptocurrencies like Bitcoin, Ether and Shiba Inu dominating investment discourses for the last few years, it is only natural that everyone wants in on the action.

The thing is that investing in cryptocurrencies is not always a bed of roses. To know more about how you can make the best crypto investments, click here

There are people that have just invested a few thousand and made millions. There are others that have invested millions and now are staring at just thousands!

In this article, we are going to discuss the good, the bad, and the ugly of crypto investing. If you are someone that is on the sidelines waiting, then this article will help you make the right decision. 

The Good of Crypto Investing

Let us begin with what’s good in the world of crypto investing. 

  1. Massive Returns- 

There are very few other investment assets that can match cryptocurrencies for growth and returns. We are talking about growth in excess of 300% (Bitcoin), 1200% (Ether) and more! This means that if your investment clicks, you literally do not have to do anything else. 

  1. Future of Investing- 

Every few years, you have a new investment area that takes the world by storm. Think when stock markets were the rage? This time it is cryptocurrencies. By being a part of this ecosystem right from the start, you are betting big on long-term gains and growth. 

  1. Diverse Digital Coins- 

Investing in cryptocurrencies means that you do not have just one option. There are hundreds, if not thousands of cryptocurrencies that you can invest in. However, not all of them are promising. Find out about the best ten or twenty and diversify your portfolio accordingly. 

The Bad of Crypto Investing

After the good, let us now look at the ‘bad’ of crypto investing-

  1. Poor Experience- 

Cryptocurrencies are new. This means that you do not have a lot to go by in terms of past history, trajectory and predictions. The people that are working on them are also fairly inexperienced. This makes them sink a few times and leads to losses due to poor management. 

  1. Lack of Technical Knowledge- 

No matter how many times you say that understanding and investing in cryptocurrencies, the thing is that it’s tough to understand. You need to understand everything from wallets, to blockchain, security and exchanges. This acts as a major barrier to entry for investors. 

  1. High Volatility-

There is a class of investors that absolutely loves the dynamism and volatility. Yet there is another class that prefers stability. The high volatility springs from the relatively nascent stage crypto are at. It is also a function of low regulations. This is what investors do not like. 

The Ugly of Crypto Investing

Post the good and the bad, let us now look ugly- 

  1. Presence of Cybercriminals- 

The promising growth of cryptocurrencies is the major reason that it has attracted the attention of cybercriminals. The call for increased security has been primarily because hackers have been targeting novice investors that are not secure about their wallet pins. 

  1. Confusing Governmental Regulations- 

There is still a lot of confusion about the legal status of cryptocurrencies in government circles. They do not whether they should ban it, regulate it or give it complete legal status? This means that cryptocurrencies are still a grey area in many parts of the world right now.

  1. Trends are not accurate- 

While other asset classes like real estate or stocks have predictive trajectories, the same cannot be said about crypto. Everyone says that crypto can weather inflation. However, right now, high inflation rates are pushing crypto valuations down, just like any other asset. 

The Final Takeaway

With technologies in their infancy and regulations bordering on indecisiveness, cryptocurrencies are a risky investment. That does not mean that investors that play their cards right are able to walk away with massive profits. What do you think about investing in cryptocurrencies? Let us know in the comments below. 

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