5 Reasons You Should Not Invest In Crypto.

Virtual currency or cryptocurrency, whatever you may call it, became one of the most trending forms of investment and trade in the last 5 years. But this currency gained popularity at the start of this decade. Created in 2009, crypto, namely Bitcoin, was a fast and anonymous way to transfer funds different from the traditional methods.

During the last 3 years, bitcoin and all other sorts of cryptocurrencies have risen many times their previous values. This shook the whole trade and investment all around the world. But, we also saw the sudden downfall and loss in value of crypto.

Here we will tell you why you should avoid investing in crypto so that you could save yourself from losses and depression. Believe us, they follow.

• Rapid and Extreme Fluctuations

This is one of the major problems you may face when investing in cryptocurrency. The prices of this currency are extremely volatile and involve very high risks. Even though people have earned and made huge assets out of investing in crypto, it’s not for everyone.

Fall in losses of up to 40% is not uncommon in this market and sometimes that is enough to destabilize an individual. Not only this but also some proper investors can be spooked with half the amount of losses mentioned above. These changes and variations are enough to force you into making bad trading decisions. And we know that nobody wants to make bad decisions

• Prone to Hoarding

Another reason why cryptocurrencies are not considered to be a good form of currency is that they are prone to hoarding. The purpose of normal currency is to be in circulation and to be exchanged in return for services or goods. But cryptocurrency is mainly hoarded by people who believe that its value will increase with time.

Hence, if a person believes that his assets will increase in 3 to 4 years, there is little chance of him spending them. Then it will be wrong to say that cryptocurrency is the future currency.

• Lair to Thieves

The crypto industry has now become the hub of illegal activities. Here, underground activities are running rampant without being accountable to anyone. you won’t have to reveal your identity to anybody while disclosing a transaction. Similarly, the person who is receiving the payment will also not reveal his identity.

This makes it a favorite spot for cybercriminals, who can continue leveraging and committing crimes without being detected.

• Consumption and Wastage of Time and Effort

Cryptocurrencies can take a while to get your head around. If you are not familiar with digital media, then the concept of cryptocurrency will mostly go over your head. Because it may create the scenario of a person not even understanding the basics of this game.

Although there are plenty of resources to help you out, still you may have to dedicate some time to fully understand the pros and cons of investing in cryptocurrency. So if you have plenty of time on your hands, then you may start concentrating on this play of cryptocurrency. Otherwise, it’s not your cup of tea.

• Failed as a Long term Investment

As we all know that cryptocurrencies have become widely popular and are still gaining a lot of recognition and popularity. We should try to reminisce that they have only been around for just over a decade. This concept was just published in 2008 and not many people were in favor of it.

On the contrary, we had stock markets, dating back hundreds of centuries. Also, gold has been considered a custodian of value for millennia. But, cryptocurrency? We do not know for sure what will be the future of this currency. Will it survive? Or will it just become a relic of the 21st century? Nobody knows for sure!

Epilogue

In these post-pandemic times, people are trying to find ways to make money in the fastest and shortest ways possible. Investing in cryptocurrency was also one of those ways. But due to a lack of knowledge and experience people have failed miserably.

Therefore, we have provided people with some points to be careful of while diving into the vast expanse of crypto trading. It will help them understand the cons of investing in cryptocurrency. Because why risk and lose your money on things you don’t understand? Why not invest in places where they will reward you surely!