- Researchers suggest that gold is one of the more durable investments to make.
- Chief Research Officer at BTCC provides insight on the future of Crypto.
- Interest rates in cryptocurrencies increase as inflation effects continue to escalate.
Research suggests that investing in gold could help during the current tough economic times. It is therefore that many are looking into crypto futures and exploring their options in the investment community. Cryptocurrency exchanges are now providing customers with new options for gold investments.
According to the Chief Research Officer at BTCC Exchange, “The popularity of investing in gold using cryptocurrency may be fueled by a combination of factors, including an increase in knowledge and understanding of cryptocurrency, the potential for high returns, and the opportunity to diversify an investment portfolio.”
Why investing in gold is a rising trend
Many investments fluctuate in value when the economy is unstable, and many drop significantly in value during a recession. However, throughout history gold has been able preserve its value, and is predicted to continue doing so. Due to the uncertainty of the economy, and the prediction that it might not be improving anytime soon, many are looking for new and different ways to gain some financial security.
- Economic uncertainty and instability
- Maintains value over a long-term period
- Fights against inflation
- Could diversify investment portfolio
When could investing in gold be considered
Many investments are considered to have peak times, it is usually when most investors start buying into these investments. Those who have invested before the peak, are usually the ones who are considered to have gained the most from their investments. That said, gold appears to be one of the investments which do not necessarily have a peak time, and this can have some pros and cons.
On the one hand, if something contains a steady value, no upward or downward spikes, it usually does not provide someone with immediate cash flow. In the short-term, the investment might not be as rewarding as one wishes. However, on the other hand, if something remains steady in its value, then the investment tends to help in the long-term, even during tough economic times.
These types of investments are considered to be lower-risk, but with good long-term benefits.
How to choose the correct cryptocurrency exchange
Investing in gold has not always been too popular because people tend to not want to have chunks of gold in their possession. This is where the online world, and all of its possibilities, come into play. Crypto is one of these possibilities, it allows you to purchase gold without having the struggle of carrying it around. With this in mind, some people find the task of choosing the correct cryptocurrency exchange difficult or confusing.
Here are a few things to keep in mind when making such a choice:
- Compliance to rules and regulations: Check to see whether they are compliant to the law and in which countries they are compliant. Crypto licenses should be issued to an organization for them to take part in crypto trading. This could be the first step in determining whether or not to continue with a specific organization.
- Media Coverage: See if the media has been featured in the media and look at what has been said about them. This will help determine whether they are a legitimate company and how their business has been conducted in the past. Knowing this can provide an idea of how it will be like to make use of their services.
- Safety and Security: Ensure that their trading services are safe and secure. Organizations such as BTCC believe that this is key and have therefore not been hacked in the 11 years of their operation.
Despite recent doubt in the investment of gold and crypto, it is still predicted that the future thereof could be promising, specifically within the next 5 years.
As the economy changes, the way people think about money, and work with money, changes as well. Creating a financial backup plan has become a thought on the mind of many but knowing where to begin is somewhat of a struggle. Too often that which one hopes to be a backup, also drops when the economy drops, and therefore investing in something which retains its value, can be of great benefit.
Investing in gold isn’t necessarily a new concept, but investing in it with Crypto is, and it seems to be something which will continue to trend for quite some time.
If you are considering getting your backups in place, this short tutorial will be able to help you do just that.