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If you are an investment savvy mum, you’ve been keeping an eye on different investment opportunities. The most notable player in the investment industry in the last few years is cryptocurrency.

Since their creation in 2008, cryptocurrencies have been subject to wild speculation and money-making schemes. For some people, they have been great ways to make big money. For others, they have been a secure means of holding wealth. 

But there are a few things that remain shocking about cryptocurrency now twelve-years on since their creation. Here are some of those things you might not have known about crypto investment:

It’s Unbelievably Cheap to Transfer

Transferring money through a bank, or trading on a conventional stock market can cost you a lot. Transaction fees can vary widely, but they often eat into the money. Brokerage fees also make trading an expensive process with percentage-based fees and commissions eating away at your earnings. 

You can avoid these costs by being outside the standard financial institutions. Cryptocurrencies let you do that. For example, in 2018, a single transfer of $99 million in Litecoin cost only $0.40 in fees. Even better, the transaction took only a few minutes. This speed and affordability have led optimistic investors to recognize that knowing how to invest in litecoin can be incredibly lucrative. 

It’s Secure but Not Perfect

Cryptocurrency’s rise to fame as an investment was in part due to its perceived security benefits. Because users store cryptocurrencies in digital wallets, you can only access them through a private user key. Furthermore, double-end encryption during transactions and the unique data produced in blockchain technology add to levels of security. 

But, it is essential to remember it is not unhackable: nothing is completely secure. Cryptocurrency exchanges like Coinbase have been the subject of high-profile hacks, and individual owners are continually subject to scams. 

Beyond hackers, cryptocurrency can get lost if there is damage to the physical servers and drivers storing them. So while security benefits exist, don’t believe the hype that they are perfect.  

It’s High-Risk and High Reward

If you are looking for new investment, look no further. Much like security, investors laud the returns on the digital currency as unique. Unlike conventional currency or investments, cryptocurrency has much higher return possibilities. 

Crypto investment holds the potential for high gains but also high losses. 

The volatility of the crypto market should be a cause for a pause if you are beginner investors. Unlike safer investment choices, studies have shown cryptocurrencies to be subject to statistically significant shocks. Tracking the changes over the past years, it is evident cryptocurrency experienced its most significant peak in 2018. It hasn’t been able to return to this value since then. 

Big Unknowns Remain

You may think that digital currencies are part of a well-understood market, but there are still considerable gaps in knowledge. The first being no one knows anything about the creator of the first currency, Satoshi Nakamoto! Twelve years after the first blockchain database and their identity is a mystery.

Legal systems have been slow to catch up with the currencies. For most countries, legislation is slowly getting to grips with the reality of the digital currencies. Currently, a bill is in the US Congress that addresses the tax rate on cryptocurrencies. 

Final Thoughts

If you are interested in cryptocurrency as an investment, the most critical thing you can do is research. Short talking points about returns and security can make it seem perfect. But what continues to surprise experts and investors is how little remains known about them. While we’d discussed some unknowns here, cryptocurrencies will continue to push the boundaries of currency investment in ways yet unknown. 

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