2017 is also referred to as the first year of cryptocurrency, and is the year when cryptocurrency trading became popular. Many people may have heard that they made money with virtual currency. People who have increased their assets to 100 million yen by investment are commonly called "billionaires." How many people have become billionaires with virtual currency? Even if you want to become a millionaire, let's review the advantages and disadvantages of virtual currency.
Review the advantages and disadvantages of virtual currency
From here, we will review the advantages and disadvantages of virtual currency as an investment.
(Merit 1) Start from a small amount
Many people may have heard that the current bitcoin is 1 BTC = 400,000 yen level and still feel that it is sufficiently high. However, actual transactions are possible from 0.0001 BTC. Even if 1 BTC is 1 million yen, it will be 100 yen. As with investment trusts, you can purchase for the amount of "10,000 yen", so you can use the dollar cost averaging method.
(Merit 2) You can trade 24 hours a day, 365 days a year
Unlike stocks and mutual funds that can only be traded during the trading hours of the market, virtual currencies can be traded 24 hours a day, 365 days a year. You can also buy and sell at night or on Saturdays and Sundays. Make maximum bitcoin circuit by trading.
(Merit 3 ) There is a future
For example, in the case of Japanese stocks, the highest Nikkei average is 38,957 yen in 1989. Nearly 30 years have passed, and the Nikkei Stock Average as of November 2018 is in the 21,000 yen range. At the time of 1989, the economy was in the middle of the bubble economy, so it is still far from being reached.
In terms of Bitcoin, although it has dropped significantly from the maximum amount of 1 BTC = 2.3 million yen, it may rise further in the future.
(Disadvantage 1) Low liquidity
For example, real estate is less liquid. This means that even if you try to sell an apartment, it will be difficult to find a buyer or you will not be able to sell at the desired price. Similarly, when you want to sell virtual currencies, there are cases where the buyer cannot get it. The problem may be solved if the numbers of people who trade virtual currencies further increases.
(Disadvantage 2) Somehow anxious
Virtual currency is just virtual and invisible. Many people feel uneasy because they are not able to grasp the substance as they do not receive shareholder benefits or dividends like stocks. Also, the issue of outflow of virtual currency is new to memory. It is believed that the use of virtual currencies will gradually increase in the future, but for the time being, it tends to seem to be "somehow anxious".
(Disadvantage 3) Price movements are severe
Some people are more speculative than investing because the price of virtual currencies fluctuates rapidly. Like gambling, you can make big profits if you go well, but it's also likely that you'll fail.
Cryptocurrency continues to be steadily from a long-term perspective
Similar to investment trusts, virtual currencies can form a cohesive asset in the future by accumulating several thousand yen to 10,000 yen monthly. Stocks and mutual funds often have similar price movements depending on the overall economic trend, but cryptocurrencies are independent, so holding them as part of assets will help spread risk. It's not bad to be a billionaire, but unreasonable investment can lead to huge losses. First of all, why don't you start using the surplus funds and get used to virtual currency trading?
Also, you may be worried about the deposit method because you cannot use Japanese Yen in Binance. First, make an account on a virtual currency exchange in Japan and deposit Japanese yen. Therefore, the procedure is to purchase Bitcoin, Ethereum, etc. and send it to the Binance account. Virtual currency accounts have addresses, so you can use them to move between accounts. When you withdraw money, you will need to send virtual currency to your Japanese exchange account