Is Cryptocurrency Worth It?

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Moelony Cameron, Staff Writer

Cryptocurrency is an intriguing way to invest, but it can be risky.  

With the modern world being so technology based, there are many new currencies, and one of them is cryptocurrency. A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Over the past few years cryptocurrencies like Bitcoin have gotten popular. However, the long term investment advantage of investing in digital currency seems unclear. Even though there is so much popularity behind these digital currencies, there is a question of whether cryptocurrencies are reliable.

There are many advantages of cryptocurrencies. One advantage of cryptocurrencies has a potential for great rewards but has high risk. The market experiences sudden spikes and drops in value, but those spikes can reward you greatly. Another advantage of cryptocurrencies is that the markets are always open, so you don’t have to wait to start trading. If you are an investor that is on the go 24/7, the crypto market would be worth it. The last advantage of cryptocurrency is that cryptocurrencies could help investors beat inflation. Since it is not a single currency or economy, the price heavily relies on global demand. The amount of coins is capped and inflation could not happen with them (Schwab Center for Financial Research). 

Even though there are many advantages there are also disadvantages of cryptocurrency. One disadvantage of cryptocurrency is that it takes time and effort learning about how the market works and how to properly invest. Another disadvantage is that cryptocurrency has not proven itself to be a long term investment because no one really knows what cryptocurrency will be in the future. Lastly, people who are completely new to cryptocurrency have bigger risks because of their lack of knowledge (Investopedia). 

There are many rewards but also potential risks when it comes to cryptocurrency and to start investing you should do some research about what you are getting into. For example, what is the best cryptocurrency to invest in? One of the most popular forms of cryptocurrency is Bitcoin. Bitcoin became popular in summer 2010 and has been popular ever since. Bitcoin was created as a way for people to send money over the Internet, it was first introduced in 2009 as an alternative payment system that you have control of without having a bank. Overall investing in crypto is very risky, but it can be a good investment if you do the proper research.

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