Cryptocurrency has been loud in 2020, making it known to people who have no idea about it. Still, for those who up until now have no idea what crypto is, cryptocurrency is a form of a digital asset based on a network and is disseminated across a wide range of computers. It is a decentralized structure making it away from the control of the government and central authorities, thus making its value volatile. According to experts, this blockchain will disrupt many industries, including law and finance.
Crypto investing has advantages: faster money transfers with cheaper fees and a decentralized system that does not collapse at a single point of failure. But with these advantages also come its disadvantages, including energy consumption, the hot spot for criminal activities, and price volatility. The value can go as high as a skyrocket, but it can also crash to the ground like a meteor. That's the phenomenon cryptocurrency faces today; the stock market is crashing, and it is due to the events and phenomena happening worldwide.
Cryptocurrency is crashing today; what can be the possible reasons for this? One of the most probable reasons is the record-high inflation, the fall of the economy of many countries contributing to the crypto crash, increase in interest rate, loss of confidence in crypto investments, and fear of investing. All sum up the other reasons why the cryptocurrency is crashing today. According to analysts, most factors that contributed to the crash are macro. This mainly means they flow according to the economy as a whole and not just because of any failure in the crypto market. However, some factors are exclusive to crypto investments, as per experts. One of them was the Crypto lending platform Celsius Networks LLC; they recently put all transfers between accounts on hold due to extreme market conditions. They also hold all swaps and withdrawals, creating more fear among crypto investors.
In early July of 2022, Bitcoin is sitting at 68.33 percent, below its all-time high peak value of 68,789.63 USD, which means it is in a bear market. A bear market means that the value of the investment falls by 20 percent from its peak value for an extended period. Alt-coins or alternative coins, including Ethereum and other cryptocurrencies, seem to follow the trend of the bitcoin; this made the bitcoin the indicator for all the coins in the stock market. According to experts, the stable price of bitcoin may be at least 20,000 USD for six months, but it could also experience another bearish run which could put the price of bitcoin between 14,000 USD – 16,000 USD.
With this phenomenon, only one question arises, will the cryptocurrency rise again. With this question, will investing in cryptocurrency still be worth it? Although the stock market has a lengthy history of ups and downs when it comes to the stock exchange. The crypto has no history to draw from, but knowing that the stock market has already experienced a lot of bear runs and bull run seasons over the century gives investors peace of mind. What adds up to the investors' confidence in cryptocurrency is that it has survived multiple crashes in its short history. It is documented that bitcoin survived at least seven substantial crashes and is still recovering. In 2011 Bitcoin lost 99 percent of its value, and from it, a phenomenon occurred called crypto winter. Therefore, having these phases was always anticipated by the investors. Still, the recent crash and impounding recession had an impact on investors and caused them to be hesitant to invest their money in cryptocurrency. Several still hang their investment because it is worth riding and going into history by the data, 100 percent of people who bought and waited for about four years have seen their investments growing.
Crypto remains one of those highly speculative investments. If you are one of those who believe in the high-risk, high reward mantra, then risking in cryptocurrency may be worth it for you, but it is a must to consider the overall budget, emergency funds, and high-interest revolving debt first before attempting because there is a rule of thumb when it comes to investing which is invest what you can afford to lose.
If you are still willing to dive into cryptocurrency despite the crashes it is currently experiencing today, then the best crypto to invest in this 2022 are Bitcoin (BTC), Ethereum (ETH), Tether (USDT), U.S. Dollar Coin (USDC), Binance Coin (BNB), Binance USD (BUSD), XRP, Cardano (ADA), Solana (SOL) and DogeCoin (DOGE).
Another investing in Real Estate Investing can be an option if your risk tolerance is not that high to dive into crypto investing, but real estate investment does not mean there is no risk.
When you invest in real estate, the idea is to let your money work for you while you are working for your future. The return you'll get should cover all the expenses, the risks, and the tax. Real estate investment may seem to have a lower chance, but managing it requires effort and time. Insurance, utilities, and maintenance are the factors that cost you on a real estate investment.
Mastering the basics will make things easier for you, especially in investing. In real estate, you need to be familiarized with and understand the critical factors of your investment, economics, and risk management. The process goes as buying properties, don't get bankrupt, and earning money by renting to acquire more properties. But always remember that simple does not mean it is easy because one mistake will cost you a lot or even everything you have.
There are four ways to invest in real estate; the first is real estate appreciation. This kind of investment is buying properties from underdeveloped places. Thus, when the time that place is developed to where there are stores and malls and turn into a commercial business, the property's value will increase from its original price, but this is risky because you need to predict whether the place will be developed or not. The next type of real estate investment is cash flow income. This is buying a property and turning it into a renting one, such as an apartment, building, and warehouse. Operate it, and then your income will be from tenants who rent it. Another type is real estate-related income. It is common for experts in the real estate industry, especially brokers. They make money from commissioning from the client they help to sell or buy properties. Real estate management can sometimes keep a portion of the sales for managing the property on a daily basis. The last type of real estate investment is ancillary real estate investment income. This investment income involves laundry rooms in apartments and vending machines in offices. This means a business within a more significant business. It lets you have money from collective customers.
Though it may look simple, the complexity of having real estate investments should be managed properly, from financing to legalities. Moreover, when it comes to investing, it should not be a one-day decision. One must study and understand all the factors, especially the risks, and how to manage them before putting money into them.
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