How Safe Is Crypto As An Investment?
Is cryptocurrency considered safe as an investment?
That’s a question you may have asked yourself and with the recent news about cryptocurrency, you might be afraid to put your hard-earned money into this new form of investment, despite stories of people becoming instant millionaires.
The truth is, investing in cryptocurrency is as safe as any form of investment today. And just like any other investments, you need to look beyond the hype, understand the foundations of the market, and stick to a few investing rules of thumb before diving in.
So, if you’re interested in diversifying your investment portfolio, let’s look at cryptocurrency and judge it based on the same rules that apply to traditional investments.
How safe is the technology behind this currency?
Most people are familiar with the major cryptocurrencies, such as Bitcoin or Ethereum, and often look at these digital currencies as an indicator for market investment. Instead of just looking at the value of the coins, we should consider the technology that powers them.
Blockchain is a relatively new technology and it is what powers every cryptocurrency. It is essentially a digital ledger that is very secure and impossible to change, hack, or cheat the system.
And the beauty of blockchain is that it can be applied to other areas of our life beyond finance. In fact, you are currently using a blockchain-powered app daily without even knowing it! That’s because our MySejahtera app uses blockchain technology, which helps protect your data and ensures that your vaccination certificate is authentic.
If you’re still unsure of how big blockchain technology is, think of it as the internet, only it’s being adopted at a much faster pace with 81 out of the top 100 public companies using it for things such as supply chain and financial transactions.
Bottom line, blockchain technology is here to stay, and it is more than just hype. It is a real technology with real-world applications.
So, what does that have to do with investing in cryptocurrency? Here’s how you can invest in cryptocurrency and blockchain.
How should you approach investing in cryptocurrency?
Now that we understand the potential of blockchain, if you want to invest in that technology and the platform, you need to look at investing in cryptocurrency as if it is a stock of a company.
For example, if you want to invest in a public-listed company, you buy their stock on a licensed and regulated stock exchange. Similarly, if you think it is worth investing in blockchain technology, you could invest in an established cryptocurrency through a regulated digital currency exchange like Tokenize Malaysia.
Today, investing in cryptocurrency is akin to investing in the stock of a company. A quick look at what is happening worldwide shows that cryptocurrency is here to stay.
- Public listed corporations now own over 7% of Bitcoin’s 21 million coins
- Payment providers like PayPal have enabled users to pay using cryptocurrencies
- Governments around the world (most recently in California and the UK) are starting to discuss the adoption and regulation of digital currencies
As such, it’s important to look at investing in crypto the same way as you would with any other investments. You’ll need to diversify your portfolio so that you’re not likely to suffer huge financial blows when the market goes down.
Quick Rule of Thumb For Investing In Cryptocurrency
- Put in as much as you’re willing to lose – The golden rule for investing: Never invest money that you can’t afford to lose. There are lower-risk investments like fixed deposits which give you guaranteed but low returns while Futures, Options, and crypto sit at the other end as highly risky investments with the potential for higher returns but there’s still a chance that you could lose it all.
- Have a risk management strategy – As an investor, you should always have a strategy to mitigate risk such as entering at support, exiting at resistance, lowering portfolio volatility by diversifying your investments and spreading the risk over a range of asset classes (i.e., shares, real estate, commodities, cash).
- Invest in established projects/cryptocurrency – Just like stocks, if you’re looking to invest in cryptocurrency, you should do your research and invest in projects that you understand. Leave the speculation to experienced investors with deep knowledge of the market.
- Use a secure platform – Where you choose to invest is also an important factor to consider as certain cryptocurrency platforms are unregulated and often include projects/cryptocurrencies that are highly volatile. Regulated platforms such as Tokenize Malaysia offer cryptocurrencies that have been vetted and approved by regulators taking into consideration a number of factors which ensure the coins offered are safer long-term investments with better fundamentals.
Kickstart your crypto investments safely with Tokenize Malaysia
Now that you know more about cryptocurrency and how safe it is to invest, you can easily get started with Tokenize Malaysia.
Tokenize Malaysia is an established and licensed digital asset exchange platform that is regulated by the Securities Commission Malaysia and backed by Kenanga Investment Bank. Plus, it’s also a Shariah Compliant platform!
Why choose a regulated exchange like Tokenize Malaysia?
It comes with added benefits of:
✔ investor safety against scams/fraud
✔ proper management of funds that are held by trustees
✔ strict audits and operational standards
✔ institutional-grade security
✔ insurance coverage up to US$100 million
To start investing, all you have to do is:
|Set up an account||You can download the “Tokenize Xchange” app for either iOS or Android. Or you can just head to their website to sign up.|
|Deposit RM100||With Tokenize Malaysia, you only need to put a deposit of RM100 to get started and there’s no withdrawal/deposit fee.|
|Start investing||Once you have your account set up and your deposit in place, you can invest in any of the four cryptocurrency that they have to offer.|
Invest into the future of blockchain technology and cryptocurrency by building up your digital assets the safe way with Tokenize Malaysia.
Learn more about Tokenize Malaysia here!
Investing involves risk and cost. You should understand the risks involved, compare and consider the fees, charges and costs involved, make your own risk assessment and seek professional advice, where necessary.