Cryptocurrency has swept the nation, and thousands of Americans
have decided to toss their money into the ring. While many have made thousands
of dollars off of these investments, others have lost much, much, more. So what
is the viability of cryptocurrency investing?
Investing in Cryptocurrency Is Similar to Gambling
Although various cryptocurrency companies have discussed
case uses of their “products,” few (if any) have shown how cryptocurrency can be utilized in real life circumstances. Thus
far, the hype over cryptocurrency is not backed
by actual businesses or individual use cases, therefore, investing in
cryptocurrency can be compared to gambling. Although people can (and have) made
it big through cryptocurrency investment, it seems that high rollers did so on
luck rather than actual fact-based positive business momentum. This can be seen
in the chaotic movements of the
cryptocurrency market. One day, the market jumps up 10% across the board, the
next day, the market is down 30%. These kinds of jumps prove that many
investors have no clue what to expect when it comes to cryptocurrency
investments.
It’s an Extremely High-Risk Investment
There are high-risk stock investments, but cryptocurrency
investing takes the risk to a whole other level. Traditional investing can be risky because new businesses
may or may not make it into national or international markets; however, their
business plans and goals are transparent to all potential investors. However,
cryptocurrency companies are not held to the same standard of transparency,
partly because numerous countries have not had a chance to talk about the
legality of cryptocurrency trading. Therefore, investing in cryptocurrency is a
lot like the Wild West.
At American Investment Planners, we make investing easy with
diversified portfolios that can match your desired investment plan. We work
with you to get the most out of your investment! If you are interested in
investing with us, contact us now
for a free quote!
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