Bitcoin Forum

What are the  advantages to invest in cryptocurrency rather than fiat currency?
Considering the fact the market for cryptocurrency are red tide and how will it recover?
What is the fastest liquidity in terms of daily volume? Please share your thoughts and ideas thank you.

Fiat has nothing of value behind it. It has value because people use it and trust it to conduct transactions. Once it was moved off the gold/silver standard it lost all value.

Cryptocurrency is backed by something tangible, (Blockchain Technology).

Huge difference between something that has no inherent value and something that does.

...I'm not sure how you'd "invest" in fiat currency, unless you're a friend of forex trading.

If you mean advantages of cryptocurrency investments vs investing in classical stock markets / bonds: I guess higher growth potential, little correlation between crypto and classical markets allowing for hedging opportunities and -- depending on your personal background -- lower barrier of entry. Oh, and of course a higher degree of sovereignty, assuming you handle your crypto yourself. The downside of crypto being a high-risk environment, both in terms of volatility and scams should be clear from the get-go as well though.



In time. Assuming it does.



Liquidity depends on the stocks and the coins you trade. Fastness depends on whether you have direct access to one of the stock markets, which usually doesn't come cheap. If for trading stocks you have to go through a broker like pretty much everyone else, then trading crypto is usually much faster. That is, crypto trading offers more of a level playfield than stock trading.




I think I get what you're saying, but I'm not sure I'd go as far as calling "blockchain technology" tangible ascribing inherent value to precious metals and cryptocurrencies. Obviously the inherent value of previous metals and cryptocurrencies is higher than that of fiat currencies but still its valuations stem from their rarity rather than their inherent properties.

Pretty much what HeRetiK said. If you're asking us what the advantages are of investing in cryptocurrencies, then you shouldn't invest because you don't know much or anything about cryptocurrencies at all. If you did, then you should be able to answer your questions yourself.

What I always suggest to people new to this space: study. If you're not willing to, then forget it. Invest in something else you understand instead.

Fiat will crash in the future, crypto is either way better, invest but before do lots of research not to regret in the future.

That wasn't the point of tether. Tether wasn't made to "invest" in fiat. It's just a way of tokenizing it for traders/investors to have easy access to a sort of a hedge or a "safe haven" to protect the traders and investors from the volatility. The current market situation is a perfect example on the use-case of tether.

There are many advantages of investing in cryptocurrencies. investing but not  do lots of research will regret in the future.

Note: This applies to classical markets as well, albeit brokers and banks are usually obliged to prevent you from buying assets beyond your experience and risk profile (at least in Europe). Not that this prevents the willing from bad financial decisions (or banks from pushing questionable mutual funds on the uninformed). In short: Know what you're buying.

When you say tangible it is referred to something that can be touch?
Moreover fiat currency exist because of centralised system made by the government so it has its value and never lost its value because people trust it on day to day basis.

At the moment all cryptos are really low priced, so I think it is better to invest in crypto than stay in Fiat because all the coin prices are probably going to go up and you will make more Fiat comparing to any way to invest with Fiat. I cant imagine bitcoin going Lower than 6 or 5k. Think about it, im putting all the Fiat I have got in cryptos right now.

Investing in FIAT currency you mean forex trade? Forex is manipulated more, bitcoin is global, harder to manipulate.
You shouldn't listen to advices like that, you should research it yourself if its worth to invest and WHY. Why is the question most people that invest dont ask themselfs, they hear about cryptos much and then invest, without researching why, then they are vulnerable to sell instead of HODL.

Thanks for the warm welcome bud! I hope you have a great day  ;)

 Oh Hi thanks for the response. In this era, crypto is now becoming popular and I would like to test how is it going. Its true that investment requires skills and knowledge to aim greater heights. What do you mean by HODL?

Not Velkro, but here you go.

Investing in the cryptocurrency markets in general doesn't require skills per se, but it requires a lot of studying to help you decide which coins/tokens to invest on; because a lot of coins/tokens out there are scams.

HODL is a misspell of hold. Hodl just became a meme just because some guy in the past made a topic here on bitcointalk and typed in "hodl" instead of hold. Pretty much means that you buy bitcoin or other coins/tokens, and you just simply hold on to it for years end.

The HODL topic from 2013 if you're interested: https://bitcointalk.org/index.php?topic=375643.0

Look like English is not your native language. If you taking crypto currency as an "investment" because everybody else is investing then stay out.
Crypto Currency is in red tide and same happen with stocks too, so basic fundamental of recovering remains the same. so it is also possible that they do not recover too as happen with some stocks.
I guess daily trade volume of 110K  Bitcoin (you can multiply 110 *1000* price of 1 bitcoin in you local currency)



What you are telling is not the investment, it is just a plain greed.

Kind of a weird question.    You are posting this to a cryptocentric forum.  Obviously people are going to tell you to invest into crypto.

You can't really invest in fiat.  You use fiat to invest in whatever you want, from stocks to real estate to beanie babies.


Like it or not,  crypto is highly speculative and highly volatile.   Despite what anyone tells you,  investing in crypto is extremely risky.   However,  greater risk also means greater reward.     If you go into this investing money that you consider lost,  you'll enjoy the ride and learn a lot.   Don't get greedy and give it a try.

Firstly you need to understand what exactly you want. To save money or multiply them.
If the goal is to save money, then it's better to invest in fiat. If the second one, you can try to invest in crypto.
The first option is good because you're practically 100% secure your fund, it will bring you no surprises.

Thanks for you thoughts mate, I’am also considering crypto since it is most likely trend today and high volatility. I can say that its fun and interesting to learn. All for the best!

Invest now if you want to get a big reward in end of this year. Bitcoin price is low now so it is the best time to buy cryptocurrency.

Investing in cryptocurrency is a really great decision. It has helped many people make a good amount of bucks. And this is even one of the best times to buy. Simply because the prices have fallen relatively low. But you must get to know what you're getting into. Calculate the risk and decide for yourself if it's worth it. Don't base your choices off non-substantial variables. Don't invest because it is the thing in vogue now. You might end up losing a lot of money. Get proper information, watch videos, read books and articles before you put in your money. It's valuable afterall.

True some people made good amount of bucks but some people lost it all. That's why in every bear market there is a suicide help forum on reddit popping up  :o
If a time is good to buy you always only know for sure afterwards. Falling prices are no guarantee that the will rise again soon.

Crypto is based on a amazing technology and there is a good chance that it has a bright future. Nontheless it's probably the highest risk class for investments you can find (except for cfds maybe). So if you're not a professional investor then only put that money in that you are ok to loose completely.

Oh I see I’am willing to risk and I’m intented to try cryptocurrency investment. I also watch some educational videos about it and read few articles for substantial growth.

I see no advantages in keeping your money in fiat compared to investing in cryptos. Cryptocurrencies are much safer, give a chance of high profits, while the only thing you can expect from fiat is inflation. I always say that what you invest depends on your preferences, but every investment is better than keeping money in fiat. Fiat savings are not an investment, it's the opposite. A dollar that lies around doing nothing loses value. For it to even remain at the same level it has to be put to work.

My personal opinion says the following. Investing in crypto, this is dangerous, but the possible profit, many makes you ignore the fear of losing. Only with a full understanding of what is happening can one do this. If you chase for profit, on the charts, your losses will be fact.

The advantages of investing in the cryptocurrency is that this market is quite young and there are opportunities to make huge profits, but at high risk

In my opinion, cryptocurrency is future of currency. Advantage of cryptocurrency is no inflation and limited, no one can create more.Fiat money was control by government and which government is weak on control currency, fiat money lost price and inflation.But cryptocurrency still new, cryptocurrency need time to develop.I think you can invest on BTC.

Thanks bud, I read some articles as well this might help entering to crypto space. I belive that cryptocurrency will be the future of the market and economy.

Better to Hold USDT for now, Because price of currency very low and dump, But it's your choice. Do what you want for make a profit.

One of the greatest advantages of cryptos as an investment opportunity was its openness and underestimation. Anyone who has access to the Internet can buy cryptos and in most cases see their growth exponentially. I'd rather invest in cryptos because of the possible future growth of profits from my investment. Of course, the investment space is not the same /crazy west/ as it was a few months ago, so the profit is smaller. New investors will recover the market. High liquidity means that we convert our investment into a fiat currency quickly and at low rates. So for me it's a bitcoin that has the fastest liquidity.

Why does no one buy 10-20 coins?  and do not keep them in a long time. I have been working this way for several years and do not have much capital loss

Investing in crypto currency should have a lot of skills as well as a lot of patience to earn more. Obviously investing in crypto for long term holders are more beneficial. Be more cautious on which projects to be invested as there are a lot coins in the market & a lot of scam project are running in the market. In terms of daily income Trading would be an ideal but should have good level of skill set before started trading. Since crypto is backed by Blockchain technology, many major financial institutes & tech giants are to be tested blockchain & it's use cases. Even major universities in the world have introduced courses on blockchain tech & it shows how the world treat about this field. DYOR. But keep a big hope on blockchain & crypto.

Because you have to understand that not all of us here on bitcointalk have been in the cryptocurrency space for years. Some of the members here(especially the ones asking these kinds of questions as OP) have only been here since the bull market December last year; hence a lot of them are in panic mode because they've lost a significant percentage of their initial investments.

Fiat currency is more stable so it is difficult to benefit from fiat. If you save fiat in a bank, we can receive interest from the bank but in small amounts. Whereas in crypto it is more profitable, but the risk that must be borne is also greater.

Because
1) Bitcoins or cryptocurrencies empower People while Fiats empower Banks
2) Inflation rate of Fiats are high meaning that more money is being circulated than what it is actually worth.
3) Bitcoin is more secure in a way that it could not be looted while transferring once you actually have the real deal. No customs , no nothing
4) With Fiat, there is no privacy. Banks know what you are doing with your money and stuff, they know your identity and everything.
5) Cryptocurrencies are very new,but it will be a big thing after some time,  so invest it before its too late.
Hope that helps !

To be fair, you can 'invest' in fiat currency.  You simply obtain it and hold it as an investment.  This could be in cash form, or what is more often thought of as investment would be forex transactions where you hold other nation's currencies.  I'm an American, for example, but I hedge fluctuation by holding other currencies, such as the renminbi.

There're many advnates to invest in cryptos but by crypto I mean only bitcoins. As for the advantages you get a secured coin, that no one can hack, government can't trace you, it gives you very high returns which cannot be matched by gold, fiat or and other assets. While you need to understand it's a volatile currency you need to hodl it for the long term. Also one never invests in fiat, cause fiat on it's own doesn't increases in value, fiat can be locked in a territory, but bitcoins cannot be bound by any territory. If you're planning to buy, then start to buy on every dips and make an average, and hodl for the long term.

Yes being specific you can invest in fiat currency through forex but holding the currency alone and just like how we are doing with crypto's, it won't work as the same as fiat.

As I've said, if you put into something such as forex, you can call it as an investment but holding it as your local currency and hoping the time will come inflation would decrease which will make the value of that fiat higher is unlikely.

Is it wise to invest any amount of money in cryptocurrency as opposed to investing in other forms of investment?
In any kind of investment, there is always the burden of fear from the unknown or uncertainty. The best way to answer this dilemma is to answer some of the frequently asked questions in investment circles. This way one can identify the advantages and disadvantages of investing in cryptocurrency as opposed to other traditional types of investment. Every investment comes with its opportunities and threats.

Advantages or benefits

• Cryptocurrencies ensure that transfer of funds between business or people is safe and exceedingly easy. Private and public keys are utilized to ensure transactions are safe and transference fees for funds are kept at a minimum low.

• Blockchains are online ledgers and people can transfer them through computers ensuring that others are honest. This makes transactions transparent since different people can verify them.

Disadvantages or risks

• Crypto currencies are backed by computers and maths as opposed to other currencies that have precious metals to back the.

• There are no physical coins and notes to represent the currency and therefore no central repository making it hard to recover any balance in case of a system crash.

• Cryptocurrencies experience a lot of fluctuation and this can lead to the market being volatile meaning that a lot of money can be lost or gained within a short period.

• The possibility of theft is exceedingly adamant with the existence of hackers and the prices attached to the currencies.