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Is it worth it to invest in cryptocurrency?

Cryptocurrency is our generation’s moon landing. This means that it is an innovation not witnessed ever before in the previous generation that shows how humans have advanced in their technology.

With this fairly new technology, onlookers wonder whether it is worth it to invest in. investing in cryptocurrency can make you very rich or very poor. Here are some things you need to consider before deciding to put your money and efforts into a digital currency system.

What is cryptocurrency?

Cryptocurrency is a form of digital currency to pay for goods and services. It uses a digital ledger technology or blockchain technology that secures the ownership, transfer, and creation or “mining” of coins. It does not have a physical or tangible object like paper money or metal coins.

The nature of cryptocurrency ensures that no single central authority can issue or regulate the crypto coins. It can be described as decentralized, which many people find good in terms of investment and profit-making.

For long-term investors

Cryptocurrencies do increase in value over time. In the case of bitcoin, it was valued at $1 in April of 2011, and it has exponentially grown to as high as $40,000 in July 2021. The 10-year difference could instantly make you a millionaire. 

But, this exponential growth is not guaranteed to all cryptocurrencies. In fact, there are cryptos that end their circulation, which means that what you own no longer has any value. So, if you wish to use it for your long-term investment goals, you have to be critical about which crypto to choose.

For short-term investors

One thing cryptocurrencies are known for is that they are volatile. Their prices may surge and plunge in a matter of seconds. If you are a trader, this can be an opportunity to make a profit. Even with a little capital, you can grow your money in a short span of time.

Studying the trends in the market can guide you to make the right choices. But, at the end of the day, the volatility of the crypto market means that there is no assurance whether you make money or you lose everything you have.

As a retirement plan

If you are thinking of investing your retirement money on crypto expecting that it would double in value, you might be wrong. The volatility of the market means you could lose your retirement funds in an instant. 

What others do is that they set aside a fair amount of money, something they’re not afraid of losing, and use it to buy a cryptocurrency which they think can last long and can increase its value over time. They will then leave that for a long period of time (5 years or so) and make a profit when their money has exponentially grown.


Depending on the risk you are willing to take, cryptocurrency can be a worthwhile investment. You should also be open to advice from investment planners and coaches who can help you plan where to put your hard-earned money.