Should You Invest in Cryptocurrency in 2021? – Motley Fool

Should You Invest in Cryptocurrency in 2021? – Motley Fool

Cryptocurrency is the hottest new trend in the investing world. Although digital currencies have been around for over a decade, they have exploded in popularity over the past few months.

Bitcoin (CRYPTO:BTC) has been setting records this year, reaching a peak of around $63,000 in mid-April. Other cryptocurrencies like Dogecoin (CRYPTO:DOGE) and Ether (CRYPTO:ETH) have also been gaining popularity as investors scramble to jump aboard the cryptocurrency bandwagon.

It’s possible to make a lot of money investing in cryptocurrencies, but it’s also possible to lose a lot of money. Crypto is a risky investment, and it’s not right for everyone. But is it right for you?

Person putting Bitcoin token into a piggy bank

Image source: Getty Images.

Considering the earnings potential

If digital currencies become mainstream, they have the potential to change society as we know it. Cryptocurrency supporters believe it will continue to become more widely accepted by merchants, increasing its value.

Venmo recently announced it would start accepting cryptocurrency as a form of payment, and its parent company, PayPal Holdings, also accepts crypto. In addition, companies such as Tesla and Square have made significant investments in Bitcoin, further legitimizing cryptocurrencies.

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