How secure is cryptocurrency as an investment?

How secure is cryptocurrency as an investment？

That is a question you may have asked yourself, and given recent news about cryptocurrencies, you may be hesitant to invest your hard-earned money in this new type of investment, despite reports of people becoming instant millionaires.

The truth is that investing in cryptocurrency is just as risky as any other type of investment nowadays. Before plunging in, as with any other investment, you should look beyond the hype, grasp the fundamentals of the market, and follow certain investment rules of thumb.

So, if you want to diversify your portfolio, let's look at cryptocurrencies and appraise it using the same criteria as traditional assets.

How safe is the technology behind this currency？

Most individuals are familiar with the major cryptocurrencies, such as Bitcoin or Ethereum, and they frequently use these digital currencies as a market indicator. We should consider the technology that powers the coins rather than just their value.

Blockchain is a relatively young technology that underpins all cryptocurrencies. It is essentially a digital ledger that is extremely secure and difficult to alter, hack, or cheat.

The beauty of blockchain is that it can be applied to aspects of our lives other than banking. In reality, you are already using a blockchain-powered app on a regular basis without even realizing it! This is because our MySejahtera app employs blockchain technology, which helps to preserve your data and protects the authenticity of your immunization certificate.

If you're not sure how huge blockchain technology is, think of it as the internet, only faster, with 81 of the top 100 public firms adopting it for things like supply chain and financial transactions.

To summarize, blockchain technology is here to stay and is more than simply a passing fad. It is a genuine technology with practical applications.

So, what does this have to do with bitcoin investing？ Here's how to get started with cryptocurrency and blockchain.

How should you approach investing in cryptocurrency？

Now that we understand the possibilities of blockchain, if you want to invest in that technology and platform, you should treat cryptocurrencies as if it were a stock.

If you wish to invest in a publicly traded company, for example, you buy their stock on a licensed and controlled stock exchange. Similarly, if you believe it is worthwhile to invest in blockchain technology, you might do so through a regulated digital currency exchange such as Tokenize Malaysia.

• Investing in cryptocurrencies today is analogous to investing in a company's stock. A cursory glance at what is going on in the world demonstrates that cryptocurrency is here to stay.

• Over 7% of Bitcoin's 21 million coins are now owned by publicly traded firms. Users can now purchase with cryptocurrency through payment providers such as PayPal.

• Governments throughout the world are beginning to debate the acceptance and regulation of digital currencies (most recently in California and the United Kingdom).

As a result, investing in cryptocurrency should be approached in the same manner as any other investment. You'll need to diversify your portfolio so that you don't incur major financial losses if the market falls.

Quick Rule of Thumb For Investing In Cryptocurrency

• Invest just what you're willing to lose - The golden rule of investing is to never invest money you can't afford to lose. Fixed deposits are low-risk investments that provide assured but low returns, whereas futures, options, and cryptocurrency are high-risk investments with the potential for larger profits but the risk of losing it all.

• Have a risk management approach - As an investor, you should always have a risk management strategy in place, such as entering at support and quitting at resistance, minimizing portfolio volatility by diversifying your investments, and distributing risk across a variety of asset classes (i.e., shares, real estate, commodities, cash).

• Invest in established projects/cryptocurrencies - If you want to invest in cryptocurrency, conduct your research and invest in initiatives that you understand. Leave the speculating to experienced investors with extensive market expertise.

• Use a secure platform - Where you choose to invest is also a crucial issue to consider, as certain cryptocurrency platforms are unregulated and frequently offer extremely volatile projects/cryptocurrencies. Regulated platforms, such as Tokenize Malaysia, provide cryptocurrencies that have been reviewed and approved by regulators, taking a number of things into account to ensure the coins offered are safer long-term investments with better fundamentals.

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