Is Crypto a Good Investment Right Now?

Anyone who has recently invested in Bitcoin might be wondering if they made a bad decision. Bitcoin has recently hit the headlines after plunging from highs of $70k last year to less than $20k. Some crypto analysts believe that Bitcoin could fall even lower before it recovers, but nobody can be truly certain.

The only certainty is that crypto is a volatile market for investors. With that in mind, is crypto a good investment, or should you stick to safer investments, like hedge funds?

Are You Comfortable with a High-Risk Investment?

If the recent Bitcoin crash has told us anything, it is that cryptocurrencies are high-risk investments. Anyone looking for a safe place to invest their retirement nest egg or recent inheritance would be foolish to use it all to buy into cryptocurrencies. The chance of losing your hard-earned cash is quite high, whereas investing in property or a 401k might not yield the same returns, but it will ensure you don’t end up broke.

That said, there are plenty of reasons to invest some of your savings into a cryptocurrency like Bitcoin. While crypto is high-risk, the potential rewards are also high. If you are happy making a high-risk investment and can stomach the idea of losing your money, then it is worth considering putting a small percentage of your investment pot into crypto. Many cryptocurrencies have enjoyed significant price rises since their inception, so getting in at the beginning can be highly profitable.

Check how much your money is worth against one of the many cryptocurrencies on offer right now. You can convert currency at OKX for an instant price.

You Are Knowledgeable About Crypto

Only invest in crypto if you have a good understanding of what you are investing in and how the market operates. Do plenty of research before investing in a lesser-known cryptocurrency. Join online forums and become active on crypto subreddits, so you can get a feel for whether a new crypto is likely to go the distance.

The more knowledgeable you are, the less likely you are to make poor investment decisions. It won’t guarantee that you’ll profit from your investment, but it will help ensure you cash out at the right time.

Don’t Fall Victim to FOMO

Fear of missing out or FOMO is a thing. It is the reason why everyday people jump in feet first and buy a load of Bitcoin, despite not understanding anything about crypto or blockchain. It’s also the reason why a lot of people ended up sobbing into their breakfast cereal when the bottom fell out of Bitcoin.

Plenty of amateur investors have been ruined by recent crypto crashes, but this could have been avoided if they didn’t succumb to FOMO.

Only invest in crypto if you understand the risks involved and are confident you can make sensible investment decisions based on rational facts not someone’s dodgy advice in a local bar.

Is crypto a good investment? It can be very profitable for those willing to treat it as a long-term investment with disposable income. Just make sure you know what you are doing before you add crypto to your investment portfolio.