Analysis & Opinions

The benefits and risks of cryptocurrency investments

by May 31, 2021 0
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Investing in cryptocurrency offers people the opportunity of making money while navigating through volatility and risks. Investing in cryptocurrency is still more lucrative than other investments. It doesn’t matter how much you are willing to invest because you can invest as low as $1 in cryptocurrency investments. 

Here’s a list of 4 benefits of cryptocurrency investments:

  • Massive Returns

The rate of cryptocurrency is rapidly increasing every day and so are the investments of investors. A lot of people who invested in Bitcoin in 2013 have made a huge amount of money today. Even people who invested at the beginning of 2021 are already experiencing an increase of value in their investments. For example, someone who invested $1,000 in Bitcoin in 2013 might have made up to $500,000 today. Are you impressed, head over to the Darwinex review here to get started with trading digital currency?

  • Short Investment Timeframe

Unlike other types of investments, Cryptocurrency investment allows investors to generate massive revenue in a short period of investing. For example, someone who invested in cryptocurrency at the beginning of 2021 might have already started cashing out their investments

  • Increased Liquidity

Cryptocurrency investments give investors unique control over their money because of the solid network of blockchain. The solid network of blockchain allows it to have stable liquidity, which means that investors can sell their investments instantly for ether or dollar.

  • Transparent Investments

Whenever you are investing in cryptocurrency there’s always clear information about what the network is. For example, when investing in Bitcoin, you will have a clear view of the coin network as well as what it’s all about before investing. Understanding the investment will give a clear insight into the network before you start investing your money.

Risks of Cryptocurrency Investments

  • Increased Volatility

If there’s a top risk of investing in cryptocurrency, it’s the market volatility. Compared to other solid investments, cryptocurrency is more volatile, which makes it riskier. And issues like hackers trying to steal investors investments is something to also consider before venturing into cryptocurrency investments. If possible, you can check the lqdfx review to start your journey with trading digital currencies.

  • Network Issue

Cryptocurrency relies on a strongly built network for investors to utilize its service. And whenever this network fails to perform as usual by attracting the attention of users, the cryptocurrency will gradually decrease in price. In the past few years, most of the businesses that failed are due to this issue.

  • Shortage of Resources can Happen

Just as the resources of any business can run out making them unable to continue their operations, Cryptocurrency is not an exception. If a cryptocurrency is not initiated with enough money and resources run out, everything is bound to fail. That’s the main reason why you often see many cryptocurrencies doing pre-ICO raising before finally starting the currency to have a clear insight on how it will all go.

  • Mismanagement

Every cryptocurrency startup is managed by a huge number of people who have adequate knowledge about the system. But what happens when it’s all mismanaged by any of the team members? Then, they will either lose their market price or fold up. 


So, as an investor, you should endeavour to research any cryptocurrency investment you intend to invest in. do a complete background check to know the team members that manage the currency, whether they have the required ability to manage such a big project. If the cryptocurrency have been around for a long time, you should evaluate their past records to know what their success rate is. Read reviews about the cryptocurrency and monitor their market value through a reputable broker like Alpari.


Investing in cryptocurrency offers people the opportunity of making money while navigating through volatility and risks. Investing in cryptocurrency is still more lucrative than other investments.