Crypto asset investors need to be aware of the improvement in the global economy after being hit by the Covid-19 pandemic. The proliferation of crypto assets, one of which is caused by the sluggish global economy so that bond and stock investment enthusiasts switch to crypto assets. Many novice investors also get enlightened when they see videos of dan hollings.
If the global economy improves, it will be a test for the crypto market, because people may return to investing in bonds, stocks, and others. If crypto assets are not bona fide they may be abandoned.
Crypto assets have indeed experienced rapid growth from 2013 to 2021. In February 2021, there were 4,501 units of crypto assets in the world, an increase of 1684 units compared to 2019 which amounted to 2,817 units.
In addition, due to the highly volatile nature of crypto assets, it is highly recommended that only high-risk investors invest in crypto assets. Especially with a digitalization system that does not have a guaranteed security aspect. Investors do not use funds that come from consumption allocations, let alone from loans. Besides also being wary of crypto assets that promise fixed profits.
Peek at the Profits and Loss of Crypto Investment
There are both opportunities and threats for crypto investing. First, in terms of opportunities, crypto-assets can make transactions quickly, transparently, and efficiently. Then also without any space restrictions and can be all over the world.
The next opportunity is the diversification of investment products, crypto-assets can become a potential investment alternative. Then, this crypto asset is also supported by increasingly massive technological developments.
Meanwhile, the threat that can occur is data security regulations that are still not comprehensive (cyber security). Then, the potential for scamming and phishing is in practice. Furthermore, this investment is vulnerable to highly volatile price fluctuations.
That is, profit in an instant can disappear. This investment is not regulated by a third party. Furthermore, the risk of bankruptcy of a cryptocurrency company. Lastly, the liquidity is not smooth.