Is Cryptocurrency Still a Good Investment

A digital currency that works on a blockchain technology-based decentralised network and not controlled by any authority is known as a cryptocurrency. They are secured by cryptography, due to which forging or double-spending of cryptocurrencies is nearly impossible. An essential feature of cryptocurrency is that it is never issued by any of the central banks or authorities.

Technology Behind Cryptocurrencies

The designing structure of a cryptocurrency or digital currency is like exchanging individual coin ownership. The records of ownership are stored in an electronic ledger and protected with strong cryptography. This is done to protect the creation of additional coins. They are opposed to other digital currencies, such as a centralised digital currency.

The most valuable and popular cryptocurrency is Bitcoin, which is also the first cryptocurrency. It was launched in 2009 using blockchain-based technology. After Bitcoin, thousands of cryptocurrencies came into existence with functional differentiation.

What Are the Positive Effects of Cryptocurrency?

Trading cryptocurrencies has multiple benefits, as the blockchain industry is going wider and stronger every day Cryptocurrencies are a good opportunity to grow your funds by playing with your mind. A few benefits of crypto investment are:

Volatility of Market

The cryptocurrency market has experienced high volatility and still experiencing. Traders have several opportunities as they can go long or short with intraday trading. The prices of cryptocurrencies can go up and down real quick; you have to study all the factors that can change the prices.

Wider Market Hours

Cryptocurrencies are decentralised, which means they are available for trading 24 hours a day and 7 days a week. No government regulates the trading of cryptocurrencies. Traders can trade freely in any cryptocurrency at any time.

Popular Investment

Trading cryptocurrencies has been beneficial for many traders, which is why it has become a popular way of investment. Their rising exchange rates are providing enough benefit to traders. Even though the risks are also higher, but they are grabbing the attention of many traders.

Higher Liquidity

A higher number of traders means higher liquidity. In short, you can convert your holdings into cash whenever you want. The transactions are faster and accurate due to the technology on which cryptocurrencies work. Another benefit of higher liquidity is that market prices cannot be manipulated.

Faster Account Opening

Traders can open an account with a broker among the brokers that are present in the market. Several brokers are operating in the market, which are also regulated by top regulatory bodies.

Crypto Trading Brokers

There are the top two brokers among several brokers that you can compare with each other or with other brokers to select the best broker.

InvestLite

InvestLite is a regulated broker which is offering trading in cryptocurrencies. Apart from cryptocurrency, other trading instruments are also available such as forex currencies, commodities, stocks, and more. Traders can choose an account type among the different accounts provided by the broker and start trading.

A demo account is also accessible with this broker. Traders can also access the educational material for a better understanding of the market. The transaction charges are very low as compared to other brokers.

ETFinance

ETFinance is a commission-free broker where you can trade cryptocurrencies. Other trading instruments are also available with this broker. It is a simple and user-friendly platform at which you can take advantage of educational material offered by the broker. New traders can also use a demo account to gain trading experience.

Choose an account among the multiple accounts of the broker and earn potential profits with your investments.

FAQs

How Long Should You Hold Cryptocurrency?

The minimum duration of investment in cryptocurrencies depends on the investor. Investors need to study the project and the time period for which they should invest in a particular cryptocurrency. Usually, the holdings should be long term to gain high returns.

What Are the Tax Rate on Gains of Cryptocurrencies?

The income earned with an investment made on cryptocurrencies is taxed at the normal tax rates. The government has not defined any special tax rate on the returns of investment with cryptocurrencies. It is not like other investments that are taxed with special tax rates.

Is Crypto Trading has a Good Future?

The interest of investors is increasing day by day in crypto trading. Traders are earning potential returns on the investments made by them. These are the two reasons why cryptocurrencies have a good future.

The Bottom Line

Cryptocurrency trading also requires studying the market, like trading in other financial instruments. It has several advantages due to which investors are likely to invest in cryptocurrencies. Select a broker that is trusted and regulated for safe trading practices.

They are risker as, like various other trading instruments, all the investments involve risk, but a proper study of the market is required. They are decentralised which can also be seen as one of the benefits of crypto trading. Start investing in cryptocurrencies after project and market analysis.

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