Is cryptocurrency a good investment?

Cryptocurrency is a hot topic right now, with many people looking for ways to invest their money. But is it really worth it? In this article I'll discuss the risks, pros, and cons of investing in cryptocurrency.

The best part: You don't need any experience with cryptocurrencies to see if this would be a good investment for you or not!

How it would be good ?

Because of high volatility, the potential for short term gains, and the fact that you can invest in it with very small amounts of money.

How it would not be good ?

Because there are risks involved, there are people who will scam you (fraudulent investments etc.), if you do invest long term, you can't profit from the volatility because by definition positions must be held for months or years at a time. Tax treatment is complex and uncertain.

In this article I'm going to look at the risks and rewards of cryptocurrency investing, and give you some simple recommendations.

As always, this is not financial advice so please don't make any investment decisions based solely on what you read here. Before you consider investing in cryptocurrency, you should speak with an experienced professional to make sure it's right for your own personal investment goals and risk tolerance.

Summary:

The upsides : High potential for short term gains. Low investment amounts possible, and a wide variety of methods you can use to invest.

The downsides: High volatility, against you as well as for you. The risk of fraud or theft. Complex and uncertain tax treatment. If investing long-term, you won't profit from the volatility because positions are held for months or years.

Disclaimer: I own cryptocurrency, like many people. You don't need to invest in cryptocurrency to take advantage of it - you can use it as a payment method, or even just buy some and hold on to it.

The History of Cryptocurrency

It’s been an exciting time for cryptocurrency investors. Over the past few years, the price of most major cryptocurrencies has exploded upwards, many doubling or tripling or more in 2017 alone.