Technical Analysis

Investing in cryptocurrencies can be worthwhile

Cryptocurrencies are increasingly gaining acceptance. More and more companies such as Tesla, Microsoft or even some McDonald’s branches accept cryptocurrencies as a means of payment. El Salvador became the first country in the world to introduce Bitcoin (BTC) as an official means of payment in 2021. More and more investors are now investing in cryptocurrencies. The world’s best-known and most widespread cryptocurrency is Bitcoin. However, the value of cryptocurrencies fluctuates greatly, which is why the investment is associated with a very high risk. At the same time, cryptocurrencies can also offer enormous opportunities for value appreciation. Learn how to buy cryptocurrencies in this article.

Cryptocurrencies – what is that actually?

Cryptocurrencies are currencies based on cryptographic processes. here comes the so-called Blockchain technology used. This technology enables decentralized registration and storage of all completed transactions. Transactions are no longer registered by a single financial institution, but by all parties involved in the network. This protects the network either from attacks from the outside, as well as before Fraud attempts within the network. As a novel concept emerged Cryptocurrencies first appeared in 2009 with the introduction of digital currency Bitcoin on. Since then, a huge number of other cryptocurrencies have emerged – from ether and litecoin to hundreds of smaller and less well-known altcoins.

cryptocurrencies are, like all other currencies, always traded as a pairfor example BTC/EUR (Bitcoin against Euro) and can on many big ones Crypto exchanges are purchased. In addition are you organized decentrally and are not regulated by government institutions or banks or controlled. If a change is to be made to the rules or structure of the network, all currency holders will be asked to vote. At the same time, holders of the currencies can also submit new proposals for voting. This enables constant further development of the network and thus ensures that it always meets the requirements of the users.

Advantages of Cryptocurrencies

cryptocurrencies are often called Alternative to the established financial system viewed and not without reason. On the one hand facilitate you cross-border transactions enormous, which can often take days and cause immense costs in the conventional way. One Transaction in cryptocurrencies takes time depending on the network only seconds, costs a few cents and it doesn’t matter where in the world the currencies are sent from. Also will through the Use of blockchain technology the Security against attacks and fraud significantly increased.

Blockchains cannot only be used to send the respective currency. Some enable blockchains in addition, the creation and execution from so-called Smart Contracts. This form of smart contracts enables automated transactions between two parties without central oversight; For this purpose, a condition, such as the status of the DAX, is defined on a specific day. If this condition occurs, the contract is automatically processed by the blockchain and the associated transaction is executed. This is ideal for businesses looking to reduce costs while improving efficiency.

Additionally, blockchains lend themselves to tracking supply chains, allowing for transparency while saving time and money. Just as counterfeit-proof as transactions in a cryptocurrency can be stored on a blockchain, the authenticity of a branded product or the best-before date of a food item can also be registered and tracked, for example.

Raisin Crypto: Clear structure and cost transparency

Broadly diversified investments be able high returns achieve while minimizing risk. That’s why is Raisin Crypto With to the target designedone if possible to map a large part of the crypto market, without investing too complicated in hundreds of smaller cryptocurrencies. Additionally, Raisin Crypto is not designed to bet on single currencies, engage in tactical trading, or opportunistically adjust portfolio composition. This passive approach enables investorslong term from the further dissemination of cryptocurrencies and blockchain technology to benefit.

There is a cap on the largest currency in the portfolio. This avoids over-concentration on individual currencies and contributes to greater diversification. In addition, automatic quarterly rebalancing takes place to reweight the portfolio. the Raisin Crypto costs are transparent: Customers only pay a product cost of 1.5% of the portfolio value per year. These costs are quite high compared to classic ETFs, but competitive compared to other crypto products. Due to the relative newness of the crypto market, it has not yet achieved the same efficiencies as stocks, making trading and custody comparably expensive. A reduction in costs can be expected in the future. Performance and management fees as well as custody and transaction costs do not apply. at an investment in Raisin Crypto will Not the individual currencies bought and held but a ETN acquired, which reflects the performance of the currencies.

Conclusion: Is an investment in cryptocurrencies worthwhile?

The performance of cryptocurrencies is very volatile, which means that an investment also involves a very high risk. However offer cryptocurrencies also a great return potentialwhich is why it can make sense to add cryptocurrencies to the portfolio as part of the investment strategy and thus spread the risk across different asset classes. With Raisin Crypto, investors can now add another asset class to their portfolio. A simple registration is sufficient for this.

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