Is Cryptocurrency a Good Investment ?

Since many people continue to wonder
if Bitcoin is a wise investment or not, some of you may still be unsure about
making one. Personally, I will say the same thing—that is, a resounding YES—having
been the largest advocate for cryptocurrencies and blockchain technology since
2017. Nonetheless, there are countless justifications for investing in cryptocurrency
over the long term.

Nearing
its close, 2020 was predicted by most to see a decline in the cryptocurrency
market due to the pandemic, but everything turned out well for
cryptocurrencies. At last, a new era of cryptocurrency with decentralized
finance is emerging, permanently altering the financial network. Nearly 700
projects were launched recently, and there are currently over 7,700 active
cryptocurrency initiatives. Therefore, 2021 will provide a wow factor and
billion USD market volume, according to our prediction and market study.

Is
Cryptocurrency a Good Investment?

Indeed, and for a very
straightforward reason. Blockchain is the revolution of the future for the
emergence of digital currency. The majority of nations, including China, the
United States of America (USA), and the United Kingdom (UK), are thinking about
switching from cash to digital currency. Users can now convert multiple fiat
currencies, such as the USD, EUR, and other top currencies, thanks to
cryptocurrency. Only two countries, China and India, outlawed cryptocurrency
trade in 2018. However, the Indian Supreme Court eventually overturned the
prohibition. China is now the only (largest) nation in the area that still
prohibit cryptocurrency trading, despite the fact that the majority of projects
in this space have their roots there.

The largest social media network,
Facebook, which already owns WhatsApp and Instagram, plans to introduce its own
cryptocurrency, Facebook Libra, which will allow cross-border payments with a
single currency. The project is anticipated to begin in 2021. Unbeknownst to them,
Google, Microsoft, IBM, Samsung, and Amazon are also working on
blockchain-based projects in the future. The development team has already begun
work on the project, though, and the majority of them firmly believe that
blockchain technology can rank among the finest in terms of security and
privacy.

Local stores, internet retailers,
e-commerce platforms, and merchants currently accept cryptocurrency as payment.
A number of blockchain projects have recently launched cryptocurrency-based
marketplaces with development suits. But it’s also capturing the exchange, app,
and gaming industries after the decentralization of banking. But thanks to
gaming projects, consumers can now purchase gaming accessories and other
products online, continuing the billion-dollar industry’s domination in the
market. Platforms for betting and gambling are also stepping up to express
their desire for security and privacy.

Because blockchain
technology is already integrated with nearly all other technologies and
services, its limitlessness has been repeatedly demonstrated. Numerous
businesses have already begun offering Blockchain as a service. Big data, cloud
computing, IoT, cloud storage, and apps with blockchain as the main technology.
A project built on blockchain technology will be used to track or provide
renewable energy sources by making its equipment available. In the same way,
the cryptocurrency business will inevitably gain value from the widespread
usage of blockchain-based payments.

Blockchain was attacked in 2018 for security
and privacy flaws after numerous investors lost a significant amount of money
to scams. But if 2018 was a breakthrough year for blockchain, it was also the
worst year ever. Though many investors made rash investments in various
projects during that time and suffered significant losses, the market was
experiencing a bull run due to the sudden increase in the number of investors.
Many investors who purchased coins at their peak price during the bear market
began selling them out of fear of losing money. Contrary to popular belief that
bitcoin and other altcoins are scams and that the market will never recover,
the market has begun to slowly recover, and as of right now, we can declare
that cryptocurrency is fully back on track.Comparing stock market with crypto
still worth small but at same time crypto is unpredictable or hard to
understand. Top analyst thinks crypto can outperform in future. as when you
invest in crypto you are invested digital currency but when you invested in
stock then you are invested in company. However, crypto is decentralized but
stock is centralized that means decision making of crypto depend on coin holder
but opposite to that stock will operated by company itself.

Although
cryptocurrency still carries some risk, it nonetheless offers a risk-free
investment opportunity. But yield farming, or liquidity provisioning—holding a
certain quantity of coins to support a project’s ecosystem in exchange for a
platform reward in the form of its own token—was just brought to the
cryptocurrency space. It all began with staking as the Ethereum network grew
and offered lucrative investment opportunities. Taking this into account, we
still advise you to thoroughly research cryptocurrency, beginning with its
creation and operation.

Selecting a project
to invest in is a very difficult task. But we are aware of projects like
Chainlink and Polkadot, which have partnered with prestigious businesses and
grown by about 3000% in the last few years. Thus, look into their product
offerings, partnerships, and trading platform listings. We still advise
considering a long-term hold if you intend to invest in cryptocurrency.