Today’s blog discusses tips on how investors can be successful when investing in cryptocurrency, a topic that Dan Schatt and Domenic Carosa, Earnity’s co-founders, are very familiar with.
People can invest in cryptocurrency both for diversification purposes as well as to increase their wealth overall. As Dan Schatt and Domenic Carosa point out, there are several advantages to investing in cryptocurrency, such as:
To diversify investment portfolio: Cryptocurrency has the potential to reduce the volatility of returns of an investor’s portfolio of assets since the value of cryptocurrency is not necessarily correlated with the values of other assets such as stocks or bonds. This means that investors could possibly reduce the overall amount of risk associated with a given portfolio’s expected return by adding uncorrelated assets such as cryptocurrency.
To earn money: Cryptocurrency is a good way for investors to earn more online if they manage their own account or use Account Management Services. They can also find trading signals on various social media platforms where other traders offer them free of charge.
To save money: Investors can also invest in cryptocurrency and hold it for an extended period if they think the value will appreciate over time. For example, Bitcoin was worth less than $0.01 in March 2010 but was worth over $4,000 per coin in April 2017.
To protect wealth: Cryptocurrency has since become a safe haven for many investors. Considering that cryptocurrencies are free from the authority of any single government, many people believe that investing in cryptocurrency is a way to protect one’s wealth. In addition, since the total amount of and future growth rate of most crypto is known in advance, there is no inflation risk associated with it, in contrast to a fiat currency that can be “printed” by the national governments.
Watch this space for more investment information and tips from Dan Schatt, Domenic Carosa, and the rest of the Earnity team.