October 18, 2019 (Investorideas.com Newswire) Do you believe in bitcoin and cryptocurrency as an alternative form of the traditional currency? Do you believe it is ready to skyrocket? Since its inception in 2019, cryptocurrency is touted as an entity that can transform the way we trade on a day to day basis, and now numerous entities have joined the bandwagon. While we're still away from a complete transition, the crypto space has gained enough buzz to lure anyone to start investing in it.
During the last couple of years, this space has been closely monitored and regulated by institutions and government agencies. As a result, more people are looking to invest in cryptocurrency by minimizing risks and maximizing profits.
Here are 3 things to know before investing in cryptocurrency
1. Investing in cryptocurrency can be a bad investment
Gamblers and speculators are the ideal people for the cryptocurrency market. But some of the most prominent investors, such as Warren Buffet, Charlie Munger, and T. Boone Pickens have doubts about the cryptocurrency. A finance professor at Creighton University Robert Johnson said that the cryptocurrency is a fool's theory as it is an unproven commodity.
2. You must invest through regulated professionals
Another challenge with cryptocurrency is finding the right bunch of professionals who can effectively research and recommend the entities where you can invest and grow your income. They're an array of options where you can invest, but one thing that you must look for while working with financial professionals is the Registered Investment Advisor (RIA) status by the Securities Exchange Commission.
According to Investopedia, RIAs are obligated to provide what is in the interest of their clients. They're required to register either with the Securities and Exchange Commission (SEC) or state securities administrators.
As the cryptocurrency system becomes more dynamic and complex, it will become more time consuming and challenging to know which coins and tokens will help in making a profit and which will lead to a pitfall. Working with registered professionals saves time, money and efforts and also shields you from potential thefts and attacks.
3. Cryptocurrency might aid business transactions
You need a third party intervention for transacting money, whether it is the bank, PayPal or credit card. Crypto proponents believe that in the coming days, there will be no intervention of the Third-party, and the two parties will be able to transact directly. They also believe that the transaction will hap[pen through private and public keys. A user's wallet or account address will control the public key, and the private key will be used to sign transactions. This will also minimize the processing fee charged by the banks and other financial institutions for the transfers. As impressive as it sounds, this blockchain technology will store the online transaction ledger and reduce the threat from hackers, as every new block created must be verified by the ledgers of each user on the market. The marketplace is still unpredictable. It has been extremely volatile in its pricing right from its inception. There are more than 2000 types of coins, and cryptocurrency is always unpredictable, especially among those entities which aren't regulated.
Should you invest in cryptocurrency?
There's no denying in the fact that cryptocurrency will change the way we do transactions on a day to day basis. As the industry evolves continuously, you need to research and learn whether investing here will be a safe bet for you or not. Investing your knowledge in a cryptocurrency strategy may pay good dividends in the longer run.
This is Sharon Winget, Staff Writer with GoodFirms, a review and rating platform of top IT companies & software. A tech geek at heart, I firmly believe technology can transform societies. I enjoy blogging about web design, email marketing, and content marketing.
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