(NewsNation) — According to the National Cryptocurrency Association, 20% of Americans have invested in cryptocurrency. However, a study has revealed that most people are skeptical about its dependability.
With lawsuits being filed against crypto companies and new regulations introduced by Congress, about 63% of Americans express minimal to no confidence in the safety and reliability of investing and trading in cryptocurrency, based on a Pew Research Center poll conducted in October.
How safe is it to invest in crypto?
As with any investment opportunity, cryptocurrency comes with its own set of risks and benefits. Experts recommend that beginners should educate themselves about the market to decide if the potential risks align with their investment goals.
Risks
- Extremely volatile price fluctuations
- Government regulatory uncertainties
- Potential of scams (some platforms are more secure than others)
Benefits
- Unrestricted, decentralized access to funds, unlike a central bank
- 24-hour accessibility
- Lower transaction fees
- Blockchain technology for trackable transactions
- High return potential
On Wall Street this week, companies involved in the cryptocurrency industry rose as the price of bitcoin continued to steam ahead, with investors willing to take on more risk. Coinbase Global, the crypto exchange, climbed 3.1% as bitcoin topped $107,000.
The Associated Press contributed to this report.
