Since cryptocurrencies are sophisticated investment products, investing in them carries a high risk.
By Dhaval Jasani/Money Matters
Is this the right time to invest in cryptocurrencies? What are the pitfalls, more so after the FTX disaster and the banking collapse in the US?
The recent failure of US banks has captured the attention of the entire world, and the financial system as a whole is experiencing tremors. To prevent any future deterioration of the financial system, central banks will now increase their level of surveillance.
Consideration of investing in crypto assets is undoubtedly not a sensible option in these periods of uncertainty. Although we refer to it as “cryptocurrency,” central banks throughout the world dispute this interpretation and insist that they are the only organizations capable of handling native currencies.
Again, much like any other financial product, cryptocurrencies are exchanged in fiat currency. But, the restrictions for trading cryptocurrencies are still in the early stages, which might have negative effects on investors. One such example is FTX. Trading in crypto assets will continue to be a dangerous bet unless authorities pass the necessary legislation and give all necessary clearances.
Because to their complexity as investment products, investing in cryptocurrencies carries a high risk. You shouldn’t invest any of your hard-earned money in cryptocurrencies unless you are certain that you are aware of the risks and are ready for everything, including a possible loss of capital. The simple fact that these crypto assets’ values have decreased significantly is by no means a requirement for investment.
Instead, you have a wide range of options for investing in the market, including stocks, bonds, and other financial instruments. Before you decide to invest, take some time to research these investing possibilities and weigh the dangers involved.
Is gold a safe investment in these uncertain times? How much gold should I buy every month? I am 30 years old and work in tech.
Dhaval Jasani, founder and CEO of ZTI Global Consulting
The world is changing quickly and will keep doing so. There are times along this voyage when things are uncertain, and gold is viewed as a safe refuge. Your age is perfect to begin setting aside some of your monthly income for investments. At this point, please do not overlook creating an emergency corpus that might be useful in trying circumstances. You can set aside a portion of your monthly income for investments. You have the option to invest 10 to 15 percent of the total amount available for investment in gold and gold-related instruments.
The rest of the amount available for investment may be allocated cautiously to investment products of your choice that you have identified after some research and analysis. These allocations should be considered from a long-term distance from everyday instability and price fluctuations. Investments are always vulnerable to market risk since stock markets are erratic. It goes without saying that you should also budget money for talent development to keep up with technology advancements.
ZTI Global Consulting’s founder and CEO is Dhaval Jasani.
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