Cryptocurrency has been one of the more mainstream things that have been talked about, with the prices of some major crypto coins decreasing in value throughout 2022. However, it is fair to say that crypto as a whole should still be considered a good investment.
The FIFA World Cup 2022 schedule is officially out, and if you can make a great investment, you can have some of your cryptocurrency pay for the tickets to attend the game for themselves. Let’s dive into some crypto and discuss exactly why it’s still a good investment.
The Pros to Crypto
Mining coins are something that helps you accumulate more money. For example, Coinbase allows users to get 5.75 percent annual percentage yield on Algorand, and different crypto websites are going to offer different APY for specific coins that can give you more total coins as well as more money in your portfolio.
Anonymity is also one of the biggest things about cryptocurrency due to users being able to have multiple public keys; there is no way to publicly track transactions and which wallets the coins come out of. There is also the ability to create a new wallet address to keep all of your information as safe as possible if there ever is a threat that you feel about the coins.
The fact that cryptocurrency is decentralized means that a central bank or a specific government does not regulate the coins. That means there is no way for a user to be taxed based on what they have in their crypto, as the users are the only people with autonomy and control over the account and the coins inside of the account.
Finally, a pro is that there is a higher return potential than a typical portfolio of stocks and bonds due to the high volatility in the prices that make them surge up. This means there is a better potential of making money in a quicker amount of time than any other way to make money. Looking at Bitcoin specifically, there is a fixed supply cap of 21 million coins, so as we approach it; there will be more demand for the coins and surge the prices even higher than they are now.
The Cons to Crypto
The volatility of cryptocurrency seems to be one of the biggest issues surrounding it as the prices can continue to fluctuate when you see some “pump and dump” crypto coins. Another thing is similar to that as anyone can just create a crypto coin and the prices can become incredibly inflated.
The price is always fluctuating, so if you purchase something for one bitcoin, six months later, it could be 10 percent higher or 10 percent lower depending on when you cash out. The security can also be a little tricky as most users typically keep their cryptocurrencies inside of a crypto wallet, and if you lose access to it, there can be issues where you lose access to the coins and essentially a big percent of your portfolio.
Despite cryptocurrency feeling like the way of the future, many companies do not accept cryptocurrency as a form of payment. This could be simply due to the fact that the prices fluctuate too much and could lose value after the point of the sale where it seems worthless. However, there are some companies that will accept it as a form of payment.
Conclusion
Just like any other financial page you look at, it is always important to diversify your portfolio and that is exactly what cryptocurrency is. Of course, if you have a huge percentage of your portfolio is a cryptocurrency, then you are in the riskier side of wealth management, and that can be tricky. However, cryptocurrency has its prices down after a tough market, so now is the time to invest a percentage of your portfolio into cryptocurrency and try to accumulate some more.
