The market of cryptocurrency is not stable, many people have heard the stories of getting rich by one night, or broke in a short time. But Are cryptocurrencies valuable? Can cryptocurrencies be invested? What are the advantages of cryptocurrency investment?
Why cryptocurrency is valuable?
The value of cryptocurrency comes from the nature of cryptocurrency and the nature of currency is interlinked. The nature of money is only a medium for transactions. It can exist in any form and does not need to be valuable in itself, but it must have some kind of rarity and liquidity. cryptocurrency can act as a medium for people to trade, so cryptocurrency has value.
Cryptocurrency is different from fiat currency supported by national credit. Compared with gold and silver, which can be used as a currency without any credit guarantee, it is not credited by any institution or country. The cryptocurrency user group distributed around the world is its credit. The system, the larger the user base, the more valuable cryptocurrency is. Take Bitcoin as an example. Bitcoin currently has hundreds of thousands of active addresses and is still growing rapidly. Moreover, the rules of Bitcoin use limit the number of Bitcoins that can be issued to 21 million. At the same time, it is a hard currency that can be used globally. This is why digital currencies can be valuable and can continue to appreciate.
Can cryptocurrency be invested?
Cryptocurrencies are investable because of price fluctuations. But whether cryptocurrency can be invested and what investment strategy to take depends on everyone’s risk tolerance. Friends who have experience in investment and financial management know that whether they go to a bank to buy wealth management products or to open a stock account with a securities company, most financial institutions need customers to fill out a risk survey questionnaire before they provide product services. The same is true for cryptocurrency investments.
What are the advantages of cryptocurrency investment?
The main advantages of cryptocurrency investment can be summarized as follows:
(1) Convenient operation. Register and open an account on the trading platform to start trading
(2) The threshold is low, and only a few hundred yuan can be used to participate in investment speculation
(3) 365 days a year * 24 hours, unlimited transactions, can participate in transactions at any time.
(4) Wide coverage and no national or regional restrictions.
(5) Appreciation prospects are good. Currently, the cryptocurrency and blockchain industry is still growing rapidly. The invest of outstanding currencies in advance will surely yield amazing returns in the future.