The crypto market has an high level of volatility, anyone who is about to make an investment need to have a good understanding of the volatile market. Now the question is even with the volatility will you still choose crypto over fiat when it comes to making investments?
If by crypto you mean Bitcoin then YES but if you mean altcoins then NO. I'll rather stick with fiats as they have more security then altcoins. Atleast I know my investment (with fiats) won't just vanish one day. You can be rich in altcoins this very moment and the next thing you know, you're broke again due to the project founder performing an exit scam on we (the investors) or the market crashing and the project loses all the hype and momentum that the price can't recover again. Altcoin Investment aren't recommended as they're pure gamble and not investments.
On the other hand my investment will be preferred in Bitcoin than fiats because fiats investment get devalued over time that even when you make profits, you are still at lost due to the inflation of your local fiats. My country currency (Naira) is one of the worst out there that it's nightmare investing with it. As you're investing in Bitcoin, you don't need to bother about the volatile nature of the market as it doesn't concern you, you aren't trading so you have nothing to do with the market until you have gotten to your investment target and you need to exit the market then you sell.
Irrespective of the direction that the market takes, when you don't sell, you don't lose so just keep holding through all the volatility and you'll be fine at the end.
Your assertion is right, the only issue here is that a lot of people are yet to build up confidence to withstand the volatility. In a situation where the market is going down and their investment is depreciating definitely they might be forced to sell at loss.
The crypto market has an high level of volatility, anyone who is about to make an investment need to have a good understanding of the volatile market.
Volatility needs to be taken into account only when trading, which allows to make money in this way or when investing for a short period of time. With long-term investments, volatility at the “intermediate” stages doesn't matter at all, but only the “entry point” and “exit point” are important.
Now the question is even with the volatility will you still choose crypto over fiat when it comes to making investments?
Investing in fiat? What are you talking about? What idiot would invest in fiat? Investments will
destroy these investments to zero or even worse, to a loss. Fiat has never been and never will be an investment tool. Remember this.
Now the answer to your question is easy to find. Of course, investments are only possible in cryptocurrencies, but not all of them. Because most of cryptocurrencies are even worse than fiat. These cryptocurrencies are getting cheaper and depreciate faster than inflation hits fiat. Worst of all, in the end begin to cost nothing at all. And here the opposite effect appears, that fiat turns out to be better than many cryptocurrencies. Although many such cryptocurrencies are simply called shitcoins.
You just have to DYOR before you start any investment, basically you should not just follow the crowd to make decisions.
why should we choose between these two only? and why fiat? you don't invest in fiat, investing in it makes no sense. you can invest in a lot of things like gold or real estate as the alternative to bitcoin.
as for crypto. it is silly to invest in altcoins, the only viable investment is bitcoin. altcoins are too risky and manipulated to be invested in.
This is a very good insight, I love the way this is pointing out other investments that we can venture into. Though I would still prefer crypto investment over any other investments.
The crypto market has an high level of volatility, anyone who is about to make an investment need to have a good understanding of the volatile market. Now the question is even with the volatility will you still choose crypto over fiat when it comes to making investments?
Without understanding that the volatility of the BTC market can cause us huge losses, it will be equal to gambling. We have to do proper analysis, both technical and fundamental. We have to keep an eye on the the economy because the the BTC market is mainly driven by demand and supply and positive news like some improvements or adoption by some companies or governments. An example can be taken from ETFs.
I will suggest keeping funds in cryptocurrency, but the choice of cryptocurrency also matters. That's another question: which cryptocurrency should be selected for investments? But at first, we don't have to make investments in fiat because fiat in itself is working money—physical money that we use to buy and sell things—and cannot be used to store our asset's value.
While there are many cryptocurrencies that we can use to store our assets' value, like BTC, Because if we store our money in some fiat, it will be reduced due to inflation, while if we keep our funds in the form of BTC, they will not be reduced due to inflation because BTC is a hedge against inflation.
I think it’s good to have investment in crypto currency especially BTC but you have to DYOR, there are investments in fiat just like super savings that allows you to earn up to like 3% of your investment as reward, those are equally regarded as Fiat investment. Regardless I would still choose to do such in crypto, I can hodl my asset and still make profit from it monthly base on the savings plan. It’s possible to earn up to 7% APR on your saving on Bitget shark fin product.
The crypto market has an high level of volatility, anyone who is about to make an investment need to have a good understanding of the volatile market. Now the question is even with the volatility will you still choose crypto over fiat when it comes to making investments?
I think that's pretty much it, people like many of us will choose to invest in crypto because of its volatility. Because we know that we could maximize our gains with swings of the market and from the season of the market unlike stocks or any tangible investments that needs a lot of time to appreciate its value. Bitcoin could actually soar up to $100,000 if someone, a billionaire, named Elon Musk calls long to bitcoin. Just a simple news could actually make some crypto investors a millionaire, and they, I mean we love that volatility.
But don’t forget that the volatility can also make you loose money, it is in two ways actually.