Cryptocurrency & Pakistan; Should You Invest or Not?

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If you have been thinking of investing in cryptocurrency lately, chances are you have been marketed “millionaire crypto” stories on social media. Yes, crypto has the potential to make you rich overnight but it also has a very high potential of completely wasting away your investment. All thanks to the highly volatile value of these currencies making it is a huge hit or miss.

But there is more to crypto than just high volatility, it might just be the currency of the future. Should you invest in it? Here is why you should and why you should not, but first;

What is Cryptocurrency?

Cryptocurrency in simple words is digital cash, here to revolutionize how you think and spend money. This form of digital currency as you would guess is stored digitally in either a digital wallet or the vendor through which you trade. But is it not unsafe, you must be wondering? Not exactly, these digital wallets have a highly encrypted pin that only you can access and the whole digital currency platform is backed by blockchain. It stores and keeps a record of all transactions made spread across different computers and systems.

Why You Should Invest in Crypto?

The biggest benefit that crypto has over physical currency is “decentralization”, crypto is not backed by any back or country (majority of them) so there is no middle entity trying to take a cut from your transaction. The transaction is safely made between the buyer and the seller without the third person meaning more profit for you.

Secondly, many businesses are investing in crypto and view it as the currency of future so there is a huge prospect for crypto to if not completely replace physical cash, become just as significant. Thirdly, crypto is just so convenient; no trips to bank, transactions from home and no third-party cuts. Does it get any better? It is very safe; all transactional information is encrypted and the vendor itself ensures safe transactions by confirmation and locking asset methodologies.

Crypto is highly volatile, while that does sound like a risk, it also sounds like an excellent opportunity if you play your cards right. All the while virtually doing nothing.

Why You Should Not Invest in Crypto?

First off; the high volatility. You never know whether your currency will dip or rise making it a very uncertain investment. Yes, all investments come with a risk but the volatility of crypto is just too big of a risk. I mean, a single tweet by Elon Musk on Bitcoin shattered its value. Secondly, digital currency is not backed by any government so in case you invest through an individual or a consultancy (there are many in Pakistan) and are frauded, there is no help coming from authorities.

Cryptocurrency Situation in Pakistan 

Crypto trading in Pakistan happens a lot and by a lot I mean “Pakistan is ranked 15th highest crypto-trading country in the world” a lot. Like other countries, Pakistan is yet to adapt to the concept of digital currency but is looking at options. So far in Pakistan, the cryptocurrencies are not illegal but the state bank has banned banks and individuals from accepting or trading crypto. So, what is the future of crypto in Pakistan? Nobody knows for sure.

Tips for Risk-Takers

While crypto offers many benefits over digital currency and has a bright prospect, it is a new concept that the world is trying to grab on to. Will it flourish in future or crash? No one knows but one can remark that while investing in crypto is not the best way to generate long-term wealth, it can yield good returns if researched and done properly.

Here are some tips for the risk-takers;

  1. Study and research your currency.
  2. Study previous graphs to learn the performance of the currency.
  3. Study how the vendor app you will use operates.
  4. Acknowledge the limit of coin supply.
  5. Avoid social media stories and do your own research.

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