4 Advantages of Investing in Cryptocurrencies
The birth of bitcoin in 2009 opened doors to investment opportunities in a whole new kind of asset class – cryptocurrency. Many entered space early.
Intrigued by the immense potential of these nascent but promising assets, they bought cryptos at a low price. Therefore, the bull run of 2017 saw them become millionaires/billionaires. Even those who didn’t bet much reaped decent profits.
Three years later, cryptocurrencies are still profitable and the market is here to stay. You may be an investor/trader right now, or you may want to take a picture of it. In any case, it makes sense to be aware of the benefits of investing in cryptocurrencies.
Cryptocurrency Has a Bright Future
Credit and debit cards will become obsolete, according to an Imagine 2030 report released by Deutsche Bank. They will be replaced by smartphones and other electronic devices.
Cryptocurrency is no longer seen as an oversight but as an alternative to existing monetary systems. Their advantages such as security, speed, minimum transaction cost, ease of storage, and communication in the digital age are recognized.
Concrete regulatory guidelines encrypt and accept cryptocurrencies. The report predicts that by 2030 there will be 200 million users of cryptocurrency wallets and by 2035 around 350 million.
Increased Profit Potential
Diversifying is a basic rule when investing. Especially at a time when most assets suffered heavy losses due to economic problems caused by the COVID-19 epidemic.
While Bitcoin investment returned 26 percent from last year, gold returned 16 percent. Many other cryptocurrencies have seen a three-digit ROI. The stock market, as we all know, has had an unpleasant performance. Crude oil prices fell sharply below zero in April.
The inclusion of Bitcoin or any other encryption in your wallet protects the value of your fund in these uncertain global market conditions. This fact was also influenced by Paul Tudor Jones, director of the Billionaire Investment Fund when he announced his intention to invest in Bitcoin a month ago.
No Paperwork or Formality Required
You can invest in Bitcoin or any other cryptocurrency without unnecessary terms and conditions.
Unlike conventional investment options, where a large amount of documentation is required to prove that one is a “credible investor”, crypto investing is free for everyone. In fact, that was the goal of cryptocurrencies. Democratize money/finance.
Sole Ownership in Investment
When you buy bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction happens in a peer-to-peer arrangement.
Unlike bonds, mutual funds, stockbrokers, no third party ‘manages your investment’ for you. You call the buying and selling shots, whenever you want to.
User autonomy is the biggest benefit of cryptocurrency systems that provides incredible opportunities to invest and build a corpus on your principal capital ‘independently’.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to kickstart your crypto investment journey.
Read all about what is cryptocurrency.