- One should always start investing in bitcoin initially as it is a promising investment.
- Cryptocurrency investments are beating all other forms of investment in assets.
Many have started investing in cryptocurrency as more and more investors are looking for financial stability. However, 40 % of people think that investing in cryptocurrency is a risk. Experts warn that new investors should be very cautious while investing in cryptocurrency and that only 5 to 6 % of their wealth should be invested.
Gaurav Dahake’s take on cryptocurrency risk
There is no doubt that cryptocurrency is gaining popularity in the western world and India. There are many people interested in dealing with cryptocurrency, but the risk and stakes are equally high. Thus not many investors in India can take that risk.
A recent poll was conducted by a financial daily on how people perceive cryptocurrency, and the results came out as 40 % of investors feel that cryptocurrencies are too risky to invest in. While 30 % do not understand this market. 15 % said that they would like to invest in getting quick gains.
However, experts believe that a small portion of the investor’s wealth can undoubtedly be in crypto. Ethereum and bitcoin are the two currencies popular among investors and are giving great returns in the last few months.
Cryptocurrency investments are beating all other forms of investment in assets. The problem is not many investors understand what it takes to invest in cryptocurrency. Bitbns CEO Gaurav Dahake said that many investors invested in bitcoin in 2017’s bullish trend and again invested in 2018, but 90 percent dropped out. However, after the Supreme Court order against RBI, which prevented the financial institutions and banks from dealing in crypto, many investors came back to invest in cryptocurrency.
Bitbns trading volume is around $50mn daily. It offers 75 different pairs of cryptocurrency. Investors can also invest in fiat currency, including Indian rupees. Dahake also informed that the overall trading of March 2020 had grown manifolds, and more investors are seen trading in one day compared to the whole of March 2020 volumes.
Be cautious while investing in cryptocurrency.
What is the safest way to invest in the crypto market? Dahake explained that one should always be very careful while investing in cryptocurrency. He explained the technique by citing an example of SIP (Systematic Investment Plan). He said that investing in SIP makes more sense. Earlier, people invested in different price points in a lump sum, and they lost much money when bitcoin slumped.
Some investors also invested in Initial Coin Offerings (ICO), which is similar to IPOs. They invested in ICOs of other cryptos and lost their money because 95 % of ICOs were closed, which became popular in 2017.
There are numerous cryptographic money exchanges in India. Around 900 bitcoins are mined daily Bitcoin’s supply is only 21 million, which means there is more demand than supply. Out of this, 18.5 million has already been mined. So is the reason for the rising prices of bitcoin.
Institutional investors today are investing more in bitcoin. a Kshitij Purohit leads currency and commodities at Capitalvia Global, and he feels that the future of cryptocurrency is bullish, reasons-selling of bullions and purchase of cryptocurrency. Bitcoin may settle between $30,000 to $35,000, but by Diwali 2021, the coin might give a 150 percent return.
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