Digital currency investment in recent times has risen as an appealing digital investment option. A veteran crypto trader Glenn Goodman considers the rise of virtual cash as once-in an era opportunity. Glenn Goodman further adds that everybody should grab the opportunity with both hands. But does not miss on to warn you by saying, like the reward, the risks are also greater while investing. Majority of digital currency investors are usually risk-averse in their investments.
They prefer to invest in the digital currency investment platform that can give them the maximum benefits at zero or minimal loss. For them, the normal financial investment is a no-loss safe investment, but when it comes to digital currencies, they have apprehensions. Lately, Digital currency investment has started to rush to the digital currency market, shedding their underlying scorn. In a recent study by Grayscale Investments and Q8 Research, 40% of the respondents out of the 1,100 U.S based investors survey indicated enthusiasm for owning Bitcoin.
Let us discuss the comparison of digital currency investment and normal financial investment advantages and disadvantages
Shares (Stocks and Bonds) versus Bitcoin
Bonds resemble a fixed-income loan that an investor provides to an organization or to the government; though investing in stocks gives investors shares in a public-traded company. At the point when investors invest in Bitcoin, they become owners of virtual coins, which are free of central bank control. Dissimilar to the peer-to-peer transaction of digital coins, there are some administrative authorities that oversee the investment in stocks and bonds.
Digital currency investors can sell their Bitcoins to 3rd party for money or for an equivalent value in goods or services. Bonds can be reclaimed at the time of development, where the investors get the par value of the security. Also, about the share they own, the investors can sell or transfer the shares at the market price. If the market is good selling would bring them profit, if not, then loss.
Unstable Asset Class
Both Bitcoins and shares fall under volatile or unstable asset class as the variance in their respective markets decides their value. Bonds are generally stable assets, and thus, they will in general gain lower returns. Bitcoins are more volatile than shares as the digital currency market is still developing. If on one hand, stock markets are well-established financial institutions controlled by regulatory authorities, on the other, there are no regulatory authorities to control cryptocurrency exchanges.
However, in a couple of years when the digital currency investment market develops, the volatility of the Bitcoin may reduce proportionately to the number of organizations trading on stock exchanges. In October 2018, Cboe Global Market had noticed that the 20-day historical instability of bitcoin had fallen to 31.5%, beneath that of Amazon.com (35 %), Netflix (52%), and Nvidia Corp (40%). It additionally saw that the Bitcoin’s cost was as stable as Apple stock.
Return on Investment (ROI)
The interests earned on bonds are exceptionally low. Interestingly, the risk-offs outshines equities when markets go astray. Nonetheless, when the market is bullish, investors can win a great return on their investment. Bitcoin can give its investors a whopping “2000% yearly return.” Loses are similarly enormous if the market is going through a dramatic up and down.
As ICOs are slowing down in the digital currency investment market, it is quite clear that Cryptocurrency trading startups are deliberately looking for some new approaches to raise their capital. Also, the investors to are looking out for new ways to protect and grow their assets. Believe it or not, cryptocurrencies have gradually found acceptance almost all over the world in recent years.
If you are willing to start your digital currency investment today, you can visit one of the best crypto exchange platform on the internet well designed by traders for traders. Digital Ticks Exchange (DTX) is just not another crypto to crypto exchange but is also a semi-algorithm platform provider in its own. The Cryptocurrency trading platform plans to cater to all types of crypto assets as well as commodity to crypto assets.
The digital currency investment platform would be power packed by a lot of advanced features including all the basic features of an exchange required by a novice trader to a professional trader as well as for a high-frequency trader. In terms of security, Digital Ticks Exchange is taking extra precautionary measures to avoid any kind of hacks like DDoS attacks, phishing attempts and by also performing vulnerability assessments and penetration testing.
Digital Ticks Exchange team believes in robust technology, ahead of industry standards in terms of providing customer service to its stakeholders as well as traders. Digital Ticks Exchange team ensures all its traders to have smooth and user-friendly trading experience. The digital currency investment platform would not levy any transaction charges for the first few months of inception thereby giving traders to trade on zero transaction charges.