We weren’t prepared for their arrival, but Crypto Currencies are now a big part of the money game, and everyone committed to being a wealthy individual should understand all the basic principles about them. A good investor will like to understand every part of the money game.
Crypto Currencies are on the rise, and while many experts say they will never replace real money, some people have managed to earn millions just by holding an amount of these for them selling them when they become really expensive. This is a simple, yet risky solution, and true investors won’t be playing that game too long when trying to build solid wealth.
The Good Side
The attractive factor here is that they’re growing rapidly, with hundreds of them appearing every day. They’re based on solutions which allow the use of currency on most countries, and technology is always a good money driver.
We also have to consider how expensive they’ve becoming at an incredible rate. For example, Bitcoin investors have been able to earn millions just from the growth of its price, and that’s really attractive to new investors.
The Bad Side
Many financial experts claim that crypto currencies are sort of a bubble, and like all other bubbles, will explode sooner or later. The fact that they’re not supported by anything turns them into volatile platforms, and that’s when the game becomes dire.
Another thing is that there are legal risks to consider when investing on crypto currencies, as not every country accepts them as money, to the point that in some countries is completely illegal to log in into an online purse. You have to know where you stand on this regard.
While they might seem like the best investment option right now, crypto currencies are just that, currencies. Although the game is different, investing in currencies is a dangerous game and we see it as such. It’s good to hold an amount of crypto currencies, but don’t turn it into your main investment option.