Right now, regulators in Canada are paying close attention to the frenzy which has been triggered by the cryptocurrency trend. Tech-based coins, ICOs (fundraising tools for trading cryptocoins) and offerings for cryptocurrency are something that investors are going for in ever-greater numbers. At present, the market for cryptocurrency-based investments totals an astonishing 3.8 billion (USD).
Is Virtual Currency Investment Right for You?
With cryptocurrency, investors have a variety of ways to make money. They may buy virtual currency and hold onto it, in the hopes that its value will continue to increase (as with a blue-chip stock). They may also join platforms which pay them interest when they store their virtual currency there, in virtual wallets. As well, they may mine for Bitcoin or other virtual currency.
The possibilities are practically limitless. However, these types of investments do not come without risk. For example, laws which govern the cryptocurrency business may change rapidly and leave investors whistling in the wind.
Despite the risks, many people are getting in on the cryptocurrency revolution.
Experts Advise Extreme Caution
Financial experts, including the chairperson of Ontario’s Securities Commissions, are warning prospective investors to proceed with caution when it comes to jumping on the cryptocurrency bandwagon. The chairperson, Maureen Jensen, is concerned about the high level of activity in the cryptocurrency market. She encourages prospective investors to educate themselves thoroughly before putting money into this market. She wants everyone to know exactly what they’ll be purchasing.
With ICOs (initial coin offerings), issuers sell units of digital tokens or cryptocurrencies and then use them to perform transactions on related networks. The popularity of these ICOs is surging and it’s mostly because Bitcoin is gaining momentum. Bitcoin was the first virtual currency which was backed by blockchain technology of the “transactional” type.
Bitcoin and its blockchain technology is considered to be one of the most important technology developments ever, on a par with the invention of the Internet itself.
Bitcoin Values are Going Up
As you probably already know, Bitcoin values are going through the roof. Bitcoin emerged in 2009 and its value has gone up exponentially. It’s now worth two thousand percent more than it was worth in 2016. A single Bitcoin is valued at a whopping eighteen thousand dollars, based on figures for mid-December, 2017. Famous holders of Bitcoin include the twins who took Facebook co-founder, Mark Zuckerberg to court for supposedly stealing their social network concept. The Winklevoss twins are still into innovation and holding Bitcoin is one of the ways that they profit from innovation.
If you are tempted to become a player, you should spend a lot of time researching. It’s vital to know what you’re getting into. People who jump into these investments without full comprehension may be confounded by the complexities of cryptocurrencies. Those who do learn before they buy will be more realistic about the pros and cons.
It should be said that a lot of cryptocurrency fans don’t put much stock in what big bank representatives and government agency representatives have to say about virtual currency. You may feel the same. That being said, doing your homework before you invest will always give you greater peace of mind. It’s the key to making a wise and informed decision.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Visa Approves Monaco Cryptocurrency Card For Singapore Residents, Balancing Work & Life as Business Owner and all topics related to Business and Tech. If you are interested about Singapore company registration services visit our website.
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