Is cryptocurrency considered a safe investment?
It’s a question you may have asked yourself and with the latest cryptocurrency news, 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 investing today. And like any other investment, you need to look past the hype, understand the basics of the market, and stick to a few investing rules before jumping in.
So, if you want to diversify your investment portfolio, let’s take a look at cryptocurrency and judge it by the same rules that apply to traditional investments.
How secure is the technology behind this currency?
Most people are familiar with the major cryptocurrencies, such as Bitcoin or Ethereum, and often consider these digital currencies as an indicator of investing in the market. Instead of just looking at the value of coins, we should consider the technology that powers them.
Blockchain is a relatively new technology and it is what powers every cryptocurrency. It is basically a digital ledger that is very secure and impossible to modify, hack or cheat the system.
And the beauty of blockchain is that it can be applied to other areas of our lives beyond finance. In fact, you are currently using a blockchain-based application on a daily basis without even knowing it! Indeed, our MySejahtera application uses blockchain technology, which helps protect your data and ensures that your vaccination certificate is authentic.
If you’re still unsure of the scale of blockchain technology, think of it as the internet, but it’s being adopted at a much faster rate with 81 of the top 100 public companies using it for things like supply chain and financial transactions.
Bottom line, blockchain technology is here to stay, and it’s more than just hype. This is real technology with real-world applications.
So what does this 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 this technology and the platform, you should consider investing in cryptocurrency as if it were shares of a company.
For example, if you want to invest in a publicly traded company, you buy its shares on a licensed and regulated stock exchange. Similarly, if you think blockchain technology is worth investing in, you can invest in an established cryptocurrency through a regulated digital currency exchange like Tokenize Malaysia.
Today, investing in cryptocurrency is akin to investing in the shares of a company. A quick look at what is happening around the world shows that cryptocurrency is here to stay.
- Publicly Listed Companies Now Own Over 7% of Bitcoin’s 21 Million Coins
- Payment providers like PayPal allowed users to pay using cryptocurrencies
- Governments around the world (most recently in California and the UK) are beginning to discuss the adoption and regulation of digital currencies
As such, it is important to consider investing in crypto the same way you would any other investment. You will need to diversify your portfolio so that you don’t take huge financial hits when the market goes down.
Quick rule of thumb for investing in cryptocurrency
- Put as much as you are willing to lose – The golden rule for investing: never invest money that you cannot afford to lose. There are low risk investments like fixed deposits which offer you guaranteed but low returns while futures, options and crypto are at the other end as high risk investments with potential for returns. higher, but there’s always a chance you’ll lose it all.
- Have a risk management strategy – As an investor, you should always have a strategy to mitigate risk, such as entering support, exiting resistance, reducing portfolio volatility by diversifying your investments and spreading risk across a range of asset classes (i.e. stocks, real estate, commodities). , cash).
- Invest in established projects/cryptocurrency – Just like stocks, if you are looking to invest in cryptocurrency, you need to do your research and invest in projects that you understand. Leave the speculation to experienced investors with in-depth knowledge of the market.
- Use a secure platform – Where you choose to invest is also an important factor to consider as some cryptocurrency platforms are unregulated and often include highly volatile cryptocurrencies/projects. Regulated platforms such as Tokenize Malaysia offer cryptocurrencies that have been vetted and approved by regulators taking into account a number of factors that ensure the coins offered are safer long-term investments with better fundamentals.
Start Your Crypto Investments Safely with Tokenize Malaysia
Now that you know more about cryptocurrency and investment security, you can easily get started with Tokenize Malaysia.
Tokenize Malaysia is an established and licensed digital asset exchange that is regulated by the Securities Commission Malaysia and backed by Kenanga Investment Bank. Plus, it’s also a Sharia-compliant platform!
Why choose a regulated exchange like Tokenize Malaysia?
It comes with additional benefits of:
✔ investor security against scams/fraud
✔ good management of funds held by trustees
✔ strict audits and operational standards
✔ Institutional grade security
✔ insurance coverage up to 100 million US dollars
To start investing, all you need to do is:
|Create an account||You can download the “Tokenize Xchange” app for iOS or Android. Or you can just go to their website to register.|
|Put a deposit of RM100||With Tokenize Malaysia you just need to deposit a deposit of RM100 to get started and there are no withdrawal/deposit fees.|
|Start investing||Once you have your account set up and your deposit in place, you can invest in any of the four cryptocurrencies they have to offer.|
WHAT IF I had invested in Bitcoin earlier?
Don’t get caught asking this question as the crypto and blockchain space will continue to grow in the coming years. A small investment of just RM200 in January 2020 would have grown 6x to RM1200 in just 2 years!
Take advantage of current market prices with the Tokenize Malaysia promotion where they are giving away RM5,400 worth of Bitcoin to lucky investors. Learn more HERE.
Investing involves risks and costs. You should understand the risks involved, compare and consider the fees, charges and costs involved, make your own risk assessment and seek professional advice, if necessary.
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