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Investment is a great way to multiply your money. But at the same time, it is very risky. You can multiply your money or you can lose your money. Before talking about investment in cryptocurrency, let’s briefly discuss what is investment and what types of investments exist.
What is an investment?
‘Investment is an allocation of money in the expectation of some benefit in the future.’ (Source: Wikipedia).
What types of investing are there?
There are many types of investments. Investments can be physical or non-physical. For example, we can invest time to do something. We can invest money in education to get a good job in the future.
The most common investment types are the following:
- Investment in financial products like stocks, bonds, funds, etc.
- Investment to a cash equivalent.
- Investment to saving accounts.
- Investment in real estate, etc.
Each of these types of investment has its’ pros and cons. Also, they have different types of risk and different rates of income or loss.
Investment in cryptocurrency
Another type of investment is investment in cryptocurrency. This type of investment became even more popular during the COVID-19 pandemic when almost all of the world was locked down. Many offline businesses had to close their doors and people started to spend more time online.
Investment in cryptocurrency has different sides. You can just buy different types of coins and keep them in your wallet with the expectation that the price of these coins will jump up. Everyone knows how much is earned by people who bought Bitcoin about 10 years ago.
Also, you can develop your own blockchain-based platform, company, or product. You can release your own cryptocurrency. This type of investment will take more time and is much more riskier than just buying tokens. However, if your project will succeed you will be able to earn a good amount of money.
We will talk more about investment in cryptocurrency here. And you are always welcome to share your ideas and thoughts.
