![]() Ethereum gas is an example of the latter.Īll of this means that you must keep 2 things in mind: Other fees are required for the maintenance of the blockhain, don’t depend on amount of transaction, and can rise substantially when the networks are busy. Some fees collected by service providers are calculated as a percent of the trade amount and can range widely across wallets and exchanges. Given the high volatility of crypto, daily trading on crypto exchanges can be tempting, but it's only possible for those who are prepared to pay significant transaction fees. Just like with stock, it’s hard to predict crypto prices far ahead. Growth can resume again after a year, two years, or even five years. Cryptocurrency prices have very high volatility – they can rise and fall suddenly, and can continue falling for extended periods of time. High returns are associated with higher risks. You are the best and only judge of whether crypto investments are right for you. Cryptocurrencies grew many times more in the past year, even taking into account the considerable ups and downs of the crypto market – almost 400% for Bitcoin, and over 1000% for Ethereum, at time of writing.Īs you read through this article, keep in mind that none of this is financial advice. On the other hand, average stock market return over the last 10 years was almost 14% annually. With inflation, fiat (the government-issued money like the US dollar) is continuously becoming devalued. ![]() ![]() ![]() It might be useful to think of crypto as a kind of company stock: you can’t use it to pay for things in stores, but the owner of the asset profits by receiving interest payments from the investment, or selling at a higher price than purchased.Ĭonsider: Recently, the interest paid by traditional bank savings accounts has gotten absurdly low, with the average around 0.04% APY, and rarely up to 0.10% APY. So, why would a regular person – someone not working in tech or finance, and not interested in any pump-and-dump scams – want to get into crypto anyway? Often it’s too difficult to figure out, and just not worth it when there are so many easier payment options available. Some online retailers do accept cryptocurrencies, but not many. It’s true – you can’t really use crypto to buy a coffee or pay for groceries. ![]()
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