Crypto

Cryptocurrency: a good start by reducing risk

Promises of fast capital growth, but also risks (@shutterstock)

Are Bitcoin and digital currencies still an El Dorado for investors? Pitfalls and disappointments lurk behind the promise of rapid capital gains.

Young investors love cryptocurrencies — a third of 18- to 25-year-olds own or have held cryptocurrencies, according to a survey conducted this year by Heaven.

Bitcoin does offer the prospect of quick and impressive profits. One euro invested in January 2016 was worth 8 three years later, 16 at the start of 2020 and 140 on November 12, 2021 when bitcoin hit its all-time high of 56,000 euros!

Impressive growth, sure, but it can’t hide the risky nature of crypto. Thus, between the peak of November 2021 and the first days of September of this year, the value of bitcoin and most digital currencies divided by three.

So, is it worth investing part of your savings in cryptocurrency? Of course, if we take the time to study the features and mechanisms of these 21st century assets.

What are cryptocurrencies?

Like bitcoin, these are virtual and intangible currencies. These are not banknotes or coins, but digital certificates generated by a complex verification system – blockchain.

This acts like a ledger in which transactions are recorded, whether it is the issuance of units of value or an exchange, to ensure the security and authenticity of transactions.

Who issues and manages Read more at LeRevenu.com

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