Heard of Bitcoin, maybe Ethereum, or maybe Dogecoin? Crypto started gaining popularity back in 2017 when news got out that there is an interesting online currency called Bitcoin. What makes cryptocurrency so unique is that the asset is intangible, meaning it has no physical form or shape. Cryptocurrency is a digital asset that you may save on your computer or on a cryptocurrency network. Like cash, cryptocurrencies are unique from one another, they have different coding numbers same as cash notes where the printed number changes. Unlike cash, though, a cryptocurrency may be divided into various fractions and exchanged.
Why Crypto is gaining popularity?
Crypto is gaining popularity because it is a sort of stored value that can be used for transactions, akin to digital currency. Most of our assets will be digitalized in this digital era, and crypto is only one piece of the puzzle. Crypto trading platform is a billion-dollar business, it’s no wonder there is more and more trading platform like that growing these days. Some of these large crypto trading platforms are Binance, Coinbase, and Crypto.com. Many retail investors hop onto the hype train knowing if they do the right strategy, crypto can be the quickest way to be rich.
High-Status Feels
This trading platform has insane perks for using its platform. Many of these trading platforms offer a Visa card with cashback rewards of up to 8% to use for day-to-day purchases. Crypto.com also provides a metal Visa card that includes free Netflix and Spotify subscriptions. This appeals to the younger generation, who are familiar with the social media flexing culture. New research shows that almost half of all American men ages 18 to 29 say they have invested in, traded, or used a form of cryptocurrency.These young investors or influencers give out investment tips and market their cryptocurrency in the hopes it goes higher.
Insane Returns
Apart from the platforms, almost the entire crypto market has been bullish since 2020. Bitcoin raises from $7,300 from its all-time low to its 2021 all-time high of $87,000. That’s more than a 10X gain from then. Bitcoin is often referred to as the crypto index fund. Ethereum the second largest crypto asset, has gained more than 36X from its all-time low of March 2020. The largest gain came from the Shiba Inu coin which gain an insane 460,000X return from its first creation. Which such insane returns, it’s no wonder many young investors are dipping their toe into this as part of their investment tool.
NFT
NFT, or Non-fungible tokens have gained widespread attention from news media and social media influencers. When NFT first started, it was a platform for artists to sell their masterpieces online where there is authentication to verify their worth. Many large name brands such as Coca~Cola and Adidas started joining the platform and selling NFT of their own kind. Coca~`Cola was able to sell its NFT and raised over $500,000. With so much money to be earned, NFT became a flexing tool for celebs. Multiple ultra-high net worth individuals own the Bored Ape Yacht Club. Which costs more than half a million dollars and serves as a passport to high-level meet-ups.
Risk of Crypto
Without a doubt, cryptocurrency will be the next big thing. That is why there are so many cryptocurrency frauds. There’s always a con where there’s money to be made, as the saying goes. This is why many government agencies are still wary of bitcoin adoption. The currency is still relatively new to acceptance, with about 3.9% of the world actually owning it.
Ponzi Scheme
It is easy to start a cryptocurrency token whereas starting a cryptocurrency coin is hard. That’s because starting a crypto coin regards intensive coding and remodeling to structure the coin to be fast, secure, and easy to transact. Whereas starting a crypto token is relatively easy as it leeches on a parent coin mainly the Ethereum platform. Scammers build marketing hype by posting ads and reaching out to influencers to market the token before exiting. This is known as the Rug Pull, and it is a frequent escape method for fraudsters.
Riding the Hype Train
When it comes to bitcoin, it’s easy to be misled by the masses. Unlike the S&P500 index fund, which has traditionally grown at an annualized rate of 10%. Cryptocurrency is still relatively new, with exponential growth potential. This is why there are so many articles on bitcoin news information hunting for the next 10X chance.
Not Enough Research
Crypto will in the near term remain a speculative stock until the gets more high global usage. Until then, many crypto projects which start their venture will die off 1 by 1 until only a few will remain. That is why investors need to do enough research on where they want their money to be going. Unlike the stock market where businesses have to produce their quarterly earnings. Cryptocurrency does not produce quarterly earnings, instead, every once in a while, they publish its white paper.
A whitepaper is a document issued by developers that discusses the technology and objective of the project on which they are working. It explains how the cryptocurrency was created and highlights its function to prospective investors. A crypto whitepaper may contain statistics, graphics, and computations. From the perspective of a non-software engineer or coder, these white papers might be quite difficult to grasp. This is why investors must take the time to learn about and conduct comprehensive research on the investment in which they desire to participate.
How to Start Trading Crypto?
It is relatively easy to start trading crypto these days. All you need is either a computer or a smartphone. Download a crypto trading platform. We use Crypto.com as our No.1 Trading platform if you would like to get started on crypto. You can use my referral by clicking the link here.
