Many young people are working hard to increase wealth by investing to earn profit, along with salary as their main source of income.
Shark Phạm Thanh Hưng once said “I want you to soon achieve balance between income from investing activities and income from wages. If you can make it at the age of 35, congratulations, you have very good financial health. If you keep accumulating and investing, the income from accumulation and investment will gradually replace income from salary and wages”, he affirmed. (source cafef.vn)
Currently, crypto, also known as cryptocurrency, is an online investment tool chosen by more than 6 million Vietnamese. Compared to other forms of investment like savings, gold, securities, and forex, crypto stands out with its good potential for yielding high profit, as well as flexibility in time and capital. (Real estate belongs to the group of assets requiring large capital, so it shall not be discussed in this article.)
Volatility is a key characteristic of the cryptocurrency market, one that attracts millions of investors to the game. If you know how to take advantage of crypto’s volatility and trade effectively, expect double, triple the profit or even way more!
In February when the global financial market hit an all-time low due to the Coronavirus, Bitcoin was the only asset that retained any hope for investors by increasing by over $3000 USD, equivalent to nearly 50%. Recently, Bitcoin has been wavering around $6000, accumulating momentum for another heavily-anticipated spike in the coming months.
The hype for crypto is bigger than ever. Hundreds of thousands of people have taken advantage of last month’s price plunge to expand their investment portfolio and take the first step into the crypto world, pushing the number of people who own 1 BTC to a new all-time high of 8,000.
Is it safe to invest in Bitcoin?
Bank savings have long been seen as the safest form of investment. However, incidents of people losing their deposits, sometimes up to hundreds of millions VND, can often be found on the news.
Cryptocurrency, on the other hand, functions on the “blockchain” with the goal of eliminating third parties who act as intermediaries. All crypto transactions are transparently stored on the network and cannot be altered in any way by any individual or organization, which helps combat fraud.
Crypto also offers absolute ownership. Each cryptocurrency owner has complete control over their property via private keys. Just keep them to your own and no financial institution or agency can ever access your assets. Once you have understood and followed the instructions on asset security, it can be said that cryptocurrency is an extremely secure form of investment.
A fairly common negative perception toward cryptocurrency is that it is a haven for scam, with finance projects running off with huge profit after deceiving investors to buy coins/tokens in return of a dream interest rate. Just like the traditional stock market where this form of fraud was rampant before dying down significantly, crypto investors today are well alerted and equipped with information on how to protect assets.
Is it legal to invest in Bitcoin?
So far in Vietnam, Bitcoin and other cryptocurrencies have not been regulated as goods or services in current legal documents, not subject to Decree 52/2013/ND-CP. Therefore, trading and owning cryptocurrencies in Vietnam is not a violation of laws and has not been officially regulated under the legal framework of Vietnamese Government.
On August 21, 2017, the Prime Minister signed an approval to complete the legal framework for the management of virtual assets, cryptocurrencies and virtual currencies, including Bitcoin. This is a sign that Bitcoin transactions will soon be legalized and Bitcoin can be classified into the virtual asset portfolio.
How to start investing in crypto?
The basic way to invest in crypto, like any other asset, is buying at low prices and selling when prices go up to earn profit. However, to become a successful trader, you need to master quite a bit of knowledge and tactics. Stay tuned for our articles on crypto trading tactics coming next week.