Table of Contents
I’m sure you’ve heard all about the incredible returns that investors have made by buying cryptocurrencies. I’m sure you’re also wondering why you haven’t made any money from cryptos yet. After all, everybody else seems to be getting rich…except for you. Well, there’s a reason for that. Cryptocurrencies are terrible investments, and you shouldn’t buy any of them! Let me explain why.
They’re Volatile
The first reason why cryptocurrencies are terrible investments is that they’re incredibly volatile. The prices of Bitcoin, Ethereum, and other major cryptos can swing wildly up and down on a daily basis. For example, the price of Bitcoin fell from almost $20,000 in December of 2017 to around $3,000 just a year later. And it’s not just Bitcoin; Ethereum, Ripple, and almost every other major cryptocurrency has experienced similar price swings over the past few years.
If you’re looking for stability in your investments, then cryptos are not for you. Their volatility makes them far too risky for anyone who wants to protect their capital.
They’re Not Backed By Anything
Another reason to avoid investing in cryptocurrencies is that they’re not backed by anything tangible. Traditional investments like stocks and bonds are backed by real companies and governments that will still be around even if the stock market crashes or there’s a recession. Cryptocurrencies, on the other hand, are not backed by anything except for the promise that people will continue to use them.
There’s no guarantee that people will still be using Bitcoin or Ethereum in 10 years’ time; in fact, it’s entirely possible that they’ll have been replaced by newer and better cryptocurrencies by then. If nobody is using a particular crypto anymore, then its price will go to zero regardless of how much people invested in it at its peak.
They’re Not Regulated
Another problem with investing in cryptos is that they’re not regulated by any government or financial institution. This lack of regulation makes them ripe for abuse by criminals and scammers. For example, there have been numerous instances of people losing their entire crypto investments to fraudsters who have taken advantage of the lack of regulation in the space.
Of course, this isn’t to say that all cryptocurrencies are scams; however, it does mean that you need to be extra careful when investing in them since there’s no one to turn to if things go wrong.
Cryptocurrencies are terrible investments because they’re incredibly volatile, not backed by anything tangible, and not regulated by any government or financial institution. If you’re looking to invest your money, steer clear of cryptos and put your money into something more stable like stocks or bonds.