Why Crypto Investing is Next-gen Investing

Why Crypto Investing is Next-gen Investing

Cryptocurrencies are digital currencies that operate on a dedicated network called blockchain and can be used for any and all kinds of cross-border transactions, including digital payments. Because cryptocurrencies use blockchain technology, the transactions are peer-to-peer and free of middlemen.

Bitcoin was the first cryptocurrency that became mainstream and is now the most widely adopted and used digital currency in the world.

One reason why there are so many people investing in cryptocurrencies and many of them making huge profits out of them is that cryptocurrencies are highly volatile. Because their prices are not normally regulated or controlled by centralised entities like banks, cryptocurrency values can increase abruptly and without a limit. This is how people become filthy rich by investing in cryptocurrencies. However, at the same time, there is a ton of risk involved in this type of investing. Because cryptocurrencies are not regulated, investors can also lose all their money invested in these digital currencies if the market or a particular coin happens to drop significantly.

Should you invest in cryptocurrencies?

Only if you are ready to take some risk in order to make good profits from the market. If you do invest in cryptocurrencies, always keep a backup, i.e. keep your portfolio diversified across multiple asset classes and not put all or most of your funds in cryptocurrencies.

What makes cryptocurrencies a next-gen investment

Cryptocurrencies are often regarded as a next-gen investment. This is because cryptocurrencies are based on blockchain, which is a next-gen payment and digital transaction technology.

By investing in cryptocurrencies, you would essentially be investing in a next-gen technology with a high potential for growth. Of course, your own growth or how much you make with crypto will depend on which cryptocurrency you are investing in. Just because all cryptocurrencies are based on blockchain technology, that doesn’t make them by default great. How a project or cryptocurrency is utilising the technology for the good of others or to solve a genuine problem will decide how much growth it actually gets.

So, When investing in cryptocurrencies, always do your research and read complete details about the project that you are planning to invest in.

Libra coin is a good example of a high-potential, next-gen cryptocurrency for investment. Here’s why.

One – Libra coin is based on the most advanced, next-gen Binance blockchain and offers a high transaction speed at a very low per transaction fee.

Two – Libra coin is a cryptocurrency that can be traded against a wide collection of other digital currencies as well as be used as a digital currency for payments across many offline and online retailers.

Three – Unlike many other cryptocurrencies whose values are not generally backed by real assets, the value of the Libra coin is backed by the Libra ecosystem, which is a blockchain-based business platform offering many next-gen products and solutions for the benefit of the e-commerce industry.

Conclusion

Next-gen investing is anything that millennials are doing now and how they are investing their money to secure their future. As seen lately, youngsters are doing away with traditional investments, especially in the debt space, and shifting towards newer, usually high-risk options such as cryptocurrencies and stocks.

When investing in next-gen assets, do your research and stay away from the hype.

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