PRESS RELEASE: Bitcoin May Be Surging But It Might Not Pip Gold As Favorite

PRESS RELEASE: Bitcoin May Be Surging But It Might Not Pip Gold As Favorite
January 12, 2021
PRESS RELEASE: US-Listed Chinese Lottery Firm Plans $14.4M Move Into Bitcoin Mining
January 12, 2021

Cryptos are rapidly attracting investors throughout the world with Bitcoin has exploded by over 900% since March 2020 hitting highs above $41,800 in the past week.

But with all that happening, gold was still considered to be the preferred haven investment for the bigger part of 2020, with the pandemic destroying jobs and resulting in salary cuts. Nonetheless, the crypto sector has started catching up with many investors turning away from traditional asset classes.

Will something like bitcoin eventually replace gold as the best and most preferred asset class? The investment experts do not think that way. The market experts say that the investments in crypto-assets are normally high-risk and hence, should only make up a small segment of an investor’s overall portfolio.

Bitcoin has been quite wild since its creation looking at it on a month-to-month basis. Even though it is expected to continue with its bull run all through this year, the volatility makes it a less-than-perfect investment option.

Furthermore, the hacking of crypto exchanges, insecure internet-connected devices, and even the cases of compromised digital wallets remain huge concerns. In that context, the cybersecurity analysts say that these issues should be factored in before an individual is lured towards the bitcoin fad.

In some markets like India, even though the Reserve Bank of India and other financial institutions and regulators have started looking into the sector, they are quite unregulated and are majorly considered by most to be worth the investment risk.

Crypto Investors Should Take Precaution

Experts add that if anyone wants to invest in digital currencies, it is quite important to consider the authenticity of any crypto exchange before trading on it. Cryptocurrency exchanges that need users to submit their ‘know-your-customer ’ (KYC) information are normally more credible. When it comes to acquiring cryptos, experts say that doing these transactions through bank accounts or debit cards are safer than using credit cards.

They also say that investors need to consider the fees charged by the crypto exchanges for every payment option. The storage of one’s bitcoins is another worry and it is advisable to go for personal digital wallets away from these exchanges or even offline or paper wallets that are less susceptible to cyber-attacks.

In the case of selling bitcoins, users can do that directly on crypto exchanges or via P2P trading with other cryptocurrency holders.

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