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Cryptocurrency can be an attractive investment option

Monday | 11.7.22 | Last Updated 2022-07-11T11:16:36Z
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Cryptocurrency can be an attractive investment option

 The development of increasingly advanced technology has paved the way for society in various aspects of life, especially the economy. With the development of technology, economic activities can run more smoothly. One of these economic activities is investment. Investment is investment in a business with the aim of making a profit within a certain period of time. Investments can be made by buying stocks, bonds, precious metals, or currencies. 




Investments by buying currency can be divided into two types, namely foreign currencies (such as USD) and cryptocurrencies or Cryptocurrencies (such as Bitcoin). Cryptocurrency is an investment option that is considered quite attractive for some people. However, in reality there are still many people who do not know and understand Cryptocurrency. There are many people who only join in investing in Cryptocurrencies in the hope of making a profit in a short period of time. This is wrong because by not understanding Cryptocurrencies, people who invest in Cryptocurrencies can experience losses. 

Cryptocurrency is a phrase that has various explanations. However, in a nutshell, Cryptocurrency is a Cryptography based digital asset. Although Cryptocurrencies have been around for a long time, Cryptocurrencies have become known since the release of Bitcoin in 2009. Bitcoin is also considered the first Cryptocurrency in the world. Cryptocurrencies are increasingly being recognized with the increasing popularity of Bitcoin. Now, Cryptocurrencies have various variants, such as Ethereum, Dogecoin, and others. Cryptocurrency prices are always changing, sometimes up, and sometimes down. 

Cryptocurrency prices are heavily influenced by demand. If the demand for Cryptocurrency increases, the price of Cryptocurrency also increases, and vice versa. The demand for Cryptocurrencies that continues to increase is caused by people who think that Cryptocurrencies are digital assets that are safe from economic turmoil, such as inflation. People also think that Cryptocurrency is a digital asset that is free from taxes. At the end of 2020, the increasing demand for Cryptocurrencies caused Cryptocurrency prices to also increase. This was due to the unfavorable economic conditions at that time. There are many people who choose to invest in Cryptocurrencies in the hope of making a profit in a short period of time.

 However, at the end of 2021, the declining demand for Cryptocurrencies caused Cryptocurrency prices to also decline. This was due to the improving economic conditions at that time. Therefore, there are many people who suffer losses.
In conclusion, people must understand Cryptocurrency before investing in Cryptocurrency. Cryptocurrency prices are always changing influenced by demand. The decision to invest in Cryptocurrencies must be adjusted to the state of the economy at the time. We recommend investing in Cryptocurrencies in the long term, not in the short term.


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