Investments in cryptocurrencies offer huge returns, but they have huge risks associated with them, so getting trained before investing is vital. The chances of ups and downs in this field are tremendous. The initial coin offerings are being encouraged by significant companies like JP Morgan. Due to their volatility, people are hesitant to invest in cryptocurrencies, but they are worth trying. CryptoSuite Review in the most popular websites that gives us an insight into this innovative field. The Review on the topic whether to invest in cryptocurrencies is the most viewed list these days.
Here are some pros and cons of investing in cryptocurrencies:
1) The returns of crypto currencies are massive. People who invested 1000 dollars in 2013 can receive over 4, 00,000 dollars presently due to the ultimate growth of cryptocurrency market. The initial coin offerings of cryptocurrencies bring out profitable returns in a short span of time.
2) Investing in cryptocurrency is like angel investment and venture capital investing. The risk involved is huge,and one should take care of their initial capital. The crypto currencies are network-based, and the support they are receiving is immense. So, the investors are expecting more returns in short time frames.
3) Unlike equities in startups, the liquidity in cryptocurrencies is high. For example, let us consider the Datum network which is quite successful. One can sell their stakes in the cryptocurrencies at any instant. In startups, the entrepreneur has to wait for the sale of equity or acquisition of his/her stake. The option of immediate sale is not available in the field of investments.
4) In startups, people have to engage themselves in initial investment, and the project needs to be pivoted, and there are many issues to be taken care of for success. In the initial coin offering cryptocurrencies, the working of the network is already established and clear. The right product can be evaluated according to the current market trend.
There are many investment options available in the market, so to sustain in the competitive field, the portfolios must be balanced. The ICO’s are better than the venture capital and are worth investing in.
The cons are only a few and let us just have a customary glance through them.
1) Incidents such as hacking are rare, but they might make the investors lose their entire money. The volatility is more in the field of cryptocurrencies rather than in stock markets and real estate.
2) The network of the launch of cryptocurrencies has to attract potential customers and should be stable and user-friendly. Unless the product is strong enough, there will be no significant user base.
3) The cryptocurrency managers are raising pre-initial coin offering funds to build the bar of demand for the currency and to maintain the cost of resources and the network.
4) The team working for the rise of the level of standard from initial coin offerings to large market supply must be sincere and dedicated. They must have the skill set and capability to handle the project efficiently.