Cryptocurrency is still a relatively new investment form, with Bitcoin only being launched in 2009, and as such, it can be both a lucrative and risky place to put your money. But could it actually be a good fit for you? If you’re someone who’s fine with a bit of risk, and has a bit of spare cash you want to do something beneficial with - could crypto be the right choice to make here? Well, we’ve got some ideas for you to consider around this below. 

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What are You Interested in?

The first thing to work out, when it comes to determining if crypto is right for you, is whether or not you’re actually interested in this side of investing. Are you someone who likes the idea of cryptocurrency, that isn’t fiat currency and rarely has anything tangible for you to get involved in? 

You need to work out what kind of investor you want to be. Are you focused on physical assets, such as real estate, because it’s much more involved and reliable. Or are you someone who wants to place stock in companies, because you can see which way the market is going? Or is cryptocurrency a much better offer for you, because it has none of the above, but potentially has so much more to offer as a personal investment? 

Determining the Risk Factor

Cryptocurrency carries a lot of risk. As an investment that doesn’t really have a physical asset attached to it, many people simply don’t place stock in the idea. Indeed, as is explained in My Blockchain Life, cryptocurrencies depend on the belief of investors - the more it’s believed in, the more valuable it comes to be, and the less risk is associated with it. 

Take Bitcoin for example here. Invented in 2009, it only became worth $1 two years later, and is now at an all time high, being priced at over $40,000 per bitcoin. If you were an early investor, this is one of the best returns the market has even seen, but if you’re looking to get into it now, it’s going to be much more expensive than other lines of investment. 

But does that mean investing in other, smaller cryptocurrencies will have the same pay off? Who’s to say, really, but there’s only a handful of other cryptocurrencies that have reached the same level. So, is it worth this kind of risk to you? 

What Else Could You Do?

Following on from the first point, you need to decide what else could be done with your money, and whether or not these choices are better. Indeed, you could still get involved with the world of cryptocurrency, but instead invest in mining technology and the companies that own it. This could be far more sound for your portfolio in the long run. 

Cryptocurrency has a lot to offer, but it’s also very risky. Is it right for you? Keep the points above in mind as you decide.