Cryptocurrencies-digital gold mines. It is almost like a gold rush if we look at how many people are into this business nowadays.
Should you invest in cryptocurrencies during a pandemic crisis?
Since this crisis shut down many businesses, and affected many others, there is a question is “crypto gold mine” also been dried out by Corona? The answer is, not only that it is not been parched, but these digital currencies could be a turnover in the whole global economy.
Why is that so?
If we take a look at the end of the last year, there was a significant drop in the number of searches about this topic. However, in the first quartal of 2020, there was a rise of about 50% in searches of this topic. We assume this happened for 3 reasons:
Since almost everything was quarantined, a lot of businesses were transferred to virtual mode. This also initiated that most of the business start relying on digital technologies, such as cryptocurrencies.
Because of its digital nature, it is not affected by “the real” world. Most of the experts believe that cryptocurrencies will play a major role in rebalancing the global economy after the crisis.
Also, because of the global shut down, many people are forced to look for an alternative source of income, cryptocurrencies are an excellent example of it, since you can work with them from your home.
How should you invest?
First of all, you shouldn’t only rely on trending stuff. By trending stuff we mean, for example, everyone knows about Bitcoin, and everyone is talking about it, you should invest in it? If your only reason for investing is the mere popularity of that individual cryptocurrency, then definitely not. You should carefully investigate all the cryptocurrencies, and for what they stand for. XMR is for private transactions, Ethereum is for those believing in smart contracts, and so on… You can find more about investing in cryptocurrencies during the pandemic of COVID-19 here.