Should you invest in crypto? Benefits and risks to consider before investing

economictimes.indiatimes.com:

cryptocurrency worldwide has similarly impacted Indians as well. According to Nasscom, cryptocurrency investors have witnessed a significant 1,100% growth between 2022 and 2023. This remarkable transformation is evidence of heightened interest in the sphere by the Indian populace, but it comes with a critical question — should individuals who were not part of the recent cryptocurrency growth contemplate investing in cryptocurrencies?

Potential investors must research the potential advantages and disadvantages associated with cryptocurrency investment before deciding to jump into it. Some of these assets intrigue the investors based on the developers’ mission statement, whereas alternative investors favour postulating over price action and volatility of their preferred digital assets. Investing in cryptocurrencies is often intricate, but all of these assets are highly dissimilar in nature. Beginners must always be prepared to lose their capital, which can be avoided with appropriate prior analysis and due diligence.

What are the potential benefits of investing in crypto?

The first benefit of crypto investments that comes to mind is the significant growth potential. Bitcoin, the largest cryptocurrency globally, highlights this potential by its remarkable returns over the years. Investors must keep in mind that previous returns do not guarantee future returns, but in 2021, the value of Bitcoin soared well over 60%, demonstrating the possibility of serious returns. Meanwhile, in 2022 it plummeted by more than 70%.