Why Should You Invest In Cryptocurrencies? - 4 minutes read
Since the advent of Bitcoin in 2009, investors have had access to an entirely new asset class - cryptocurrency. Lots of people entered the space way before it was scheduled to open.
They bought cryptos at low prices because they were intrigued by the enormous potential of these fledgling but promising assets. Therefore, they became millionaires or billionaires as a result of the stock market boom of 2017. Some people who didn't put up a lot of money still came out ahead.
Cryptocurrencies are still profitable three years later and the market is here to stay. You may already be a trader or investor or you may be thinking about it now. Investors in cryptocurrencies should be aware of the potential benefits.
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We Foresee a Bright Future Ahead for Cryptocurrency
Credit cards and debit cards will ultimately become obsolete, according to a report published by Deutsche Bank, called "Imagine 2030". In the future, they will be replaced by smartphones and other electronic devices.
When it comes to cryptocurrencies, they will no longer be considered outcasts but rather alternatives to current monetary systems. People will acknowledge their advantages such as speed, security, ease of storage, low transaction fees and relevance in the digital world.
Cryptocurrencies would become more popular if there were clear regulatory guidelines. A new report predicts that, by 2030, there will be 200 million cryptocurrency wallet users and, by 2035, perhaps as many as 350 million.
Cryptocurrency Can Become Part of a Growing Community
According to the Edelman 2020 Global Trust Barometer, trust in cryptocurrencies and blockchain technology is on the rise. More than seventy percent of Indians trust cryptocurrencies and blockchain technology, according to the study. Sixty percent believe that cryptocurrency/blockchain will have a positive impact on society.
More Potential for Profit
Diversification is a key investment rule of thumb to follow. This is especially true for now, when the majority of assets have incurred heavy losses as a result of the COVID-19 situation's economic impact.
Since the beginning of 2020, bitcoin investment has returned 26 percent, while gold investment has returned 16 percent. Other cryptocurrencies have seen three-digit returns on investment. Everyone is aware of the poor performances of the stock market. In April, the price of crude oil astonishingly fell below zero.
Your fund's value would be protected in such uncertain global market situations if you included bitcoin or any other cryptocurrency in your portfolio. Paul Tudor Jones, the billionaire macro hedge fund manager who announced plans to invest in Bitcoin a month ago, was also struck by this fact.
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You Can Trade Cryptocurrency Around The Clock
Unlike regular markets, cryptocurrency markets operate 24 hours a day, 365 days a year, without tiring. This is so because digital currency systems are designed primarily using software code that is protected by cryptography.
Human intervention is not part of the operational blueprint. It's therefore your choice when it comes to trading cryptocurrency or investing in digital assets. Quite the benefit! Freedom is an important factor in crypto markets.
There Is No Need for Formality or Paper Work
Unlike other investment options that require huge amounts of documentation to prove that you are an "accredited investor", there are no restrictions on where and when you can invest in bitcoins or other cryptocurrencies. As a matter of fact, cryptocurrencies were created with this purpose in mind. Finance/money is being democratized.
Your Investment Is Yours Only
A bitcoin or another digital asset is yours as soon as it is purchased, and you are the sole owner of it. An arrangement between two individuals is used to carry out the transaction. There is no third party "managing" your investment for you, as there is with bonds, mutual funds and stockbroking. You decide when to buy and sell as you like.
With cryptocurrency systems, you enjoy the greatest degree of freedom. As a result, you can invest and build a corpus "independently" on your principal capital.
You should now have a good idea of the benefits you can derive from investing in cryptocurrencies. Now it's time for you to begin your own crypto investment adventure.