Should you invest in cryptocurrencies rather than gold this Diwali?
Diwali festival is nearing and Indian citizens are already in preparation. In this festival, Indians plan to invest in physical assets whose value typically increases in the future like houses or so-called gold. But, investment pools have become vast and diverse with each passing time. Market-related instruments like stocks, mutual funds, SIPs, and ETFs among others have also gained popularity. That being said, the demand for cryptocurrencies has also gained momentum as investors' appetite accelerates in this market. Cryptocurrencies are digital or virtual form of currency that utilises cryptography for secure transactions.
In recent times, cryptocurrencies have opened many job opportunities, unique and wide investment platforms, rise in startups, and further strengthening of the blockchain industry worldwide. They are often referred to as new-age investment schemes. Many companies and countries are warming up to cryptocurrencies. In Q2 of 2022, as per Chainalysis data, Vietnam, the Philippines, Ukraine, India, the US, Pakistan, Brazil, Thailand, Russia, and China are among the top 10 countries for cryptocurrency adoption globally.
But just like every market-related instrument, cryptocurrencies also have their risks. Some of these are -- high sentimental driven, sensitive to cyber threats, deeply volatile, have no regulatory backups, and lack clarity.
So, should you invest in cryptocurrencies this Diwali with your bonuses? During this festival, citizens receive monetary and other forms of gifts from their friends and families. While many companies give bonuses to their employees.
Abhijit Shukla - CEO & founder of Tarality & Revolution Games said, "In India, there is a culture of purchasing gold during occasions and
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