Cryptocurrencies funded by credit facilities.
In today’s world, dominated by Millennials, Gen z and Gen Alpha who constitute major of the today’s population are attracted towards technological development in all the spheres of life. Cryptocurrency is no exception. The Tech-savvy enabled currency, that is predicted to dominate the world happens to be the widely invested medium in today’s world, leaving stocks, shares behind. The technological advancement and the volatility of the crypto market has made an impact in today’s world and most of the investors like to invest in cryptocurrencies today.
Highly Volatile cryptocurrencies are actually bought by the investors by taking external debts and loans. The life savings and income are used seldom to invest in cryptocurrencies by the investors. The age group that is involved in taking credit for investing in crypto currency are aged from 18-24. The percentage breakdown of the age groups:
- 18-24 – 70%
- 25-34 – 64%
- 35-44 – 68.9%
The different sources which the investors use to invest in cryptocurrencies are majorly credit cards, overdraft, personal loan.
What does the top KIS Finance talk about the credit system?
Holly Andrews is the Managing Director at KIS Finance. He said that the cash credit providers will see this as a type of transaction as a cash advance, meaning a cash advance fee and higher interest rate will be applied. He suggests that, if investors are thinking of investing money into cryptocurrencies, they should go forward and invest the amount which they have and are willing to loose in the market.
Since, credit systems fund the investors to invest in cryptocurrency, the investors often land up in soup during instances like crypto market crash, which happened in the second week of May. All the money borrowed and invested in the market is lost. In such situations, the investors are in a deep pit, trying to recover from the loss and also pay the loan of the credit with as little interest and penalty as possible.
Crypto market experts predict the future of the market.
After seeing the volatility of the market, many crypto experts and commentators believe that cryptos which lost their value in the market will soon reach a record high. Some of them even believe that, the market implosion can be a sign of global recession. Whether borrowing money and investing in crypto is a good strategy, only time will tell. But, it is always safe to go with Holly Andrew’s advice of investing the amount which the investors are willing to loose due to high volatility nature of the market.