Is crypto a good investment 2021

1. Cryptocurrencies do not Generate Cash Flow . Traditional investors consider a cash outflow to be an investment if it generated future cash inflows without the need to sell the asset. For instance, if a person buys a home, they can generate cash flow in the form of rent without having to sell the underlying asset.

Individual stocks can be more volatile, but typically less so than cryptocurrencies. Because of this volatility, stocks are best held as part of a long-term investment plan , so you have time to recover from any short-term losses.16 Şub 2022

If you believe in blockchain technology, cryptocurrency is a great long-term investment . Bitcoin is seen as a store of value, and some people think Bitcoin can replace gold in the future. Ethereum, the 2nd largest cryptocurrency by market cap, also has huge growth potential as a long-term investment.28 Şub 2022

There’s no denying that some cryptocurrency traders have become millionaires thanks to their successful investments . What’s not as often discussed is the great number of people who have lost significant sums trying to become rich by investing in crypto.