The market for crypto increased to $1.49 billion by 2020, to reaching $1 trillion by 2021. In the same time cryptocurrency investing has also grown in popularity. About the 106 million who are currently investing in cryptocurrency as well as institutions such Tesla, Microsoft, Paypal, Twitter, and more taking part in it.
Why is everyone rushing to cryptocurrency?
Why invest in cryptocurrencies?
There are many reasons to invest in cryptocurrency However, any investment’s main purpose is to produce returns.
But, returns are the result of increasing value. So, every investment will only gain in terms of dollars in the event that it creates value. Cryptocurrencies are built upon the revolutionary technology known as the blockchain.
The internet today has become more centralized. Certain big companies control every aspect of what we do and see. This is dangerous because we are dependent on them to act in a moral manner by using their power. Blockchain is set to alter that by decentralizing all things. Blockchain will provide you with the ability to control the things you see and can do.
Thus investors are looking at cryptocurrency as an investment option since it is believed by experts that eventually, the globe will be decentralized.
The Top 10 Benefits of Investing in cryptocurrency
Whatever the amount of your portfolio you should think about investing in cryptocurrency. Many people are scared of the risk and keep away from it. However, they fail to know the real advantages of investing in crypto.
1. Potential for high yields
One of the main advantages to investing in crypto is the fact that they can offer an extremely high rate of growth, and therefore a high returns potential.
They have performed well as an asset in the last couple of years. As an example, Bitcoin and Ethereum have been growing by around 1000 percent and 500% in the last five years respectively. Comparatively the stock market index which is Nifty 50 has grown only by 65% in the past five years. Like any other investment there are risks with crypto investments also, one must take note of.
2. Global market
In contrast to stock markets The cryptocurrency market is world-wide. It is possible to look at it from two angles of looking at this issue –
The concept of the stock market was first introduced to various geographies at various times. It was the New York Stock Exchange was established in 1792, and BSE, the Bombay Stock Exchange was launched in 1875. This provided NYSE an advantage over BSE. In effect, investors in BSE also had an early introduction to investing opportunities. In contrast the crypto market was accessible to the entire world and not restricted to particular regions. It offered a chance for all investors to make an investment.
Second, it’s difficult to make investments on foreign exchange markets restricting investment opportunities for different regions. Anyone can however invest in projects from any area of the globe by using cryptocurrency.
Inflation is the term used to describe the decrease in price of money. As an example, $1 might be worth more during the 1900s than it would today, because inflation reduced its value. This happens due to a variety of economic reasons, with the most popular being the need to print more money. Therefore, paper money is an inflationary factor.
Some cryptos, however, are deflationary, and over time their value will increase. For instance, Bitcoin. 1 Bitcoin was worth $2000 in 2017 but now it’s worth $19000. It’s possible due to the fact that Bitcoin is a scarce commodity of 21 million coins, which is not the case with the paper currency.
4. Easy to purchase and sell
With the rise of numerous crypto-related platforms, it’s been made easy to buy and sell cryptocurrency. Certain platforms allow you to buy cryptocurrency in just a few clicks. Concepts like staking or yield farming are also emerging as a way for crypto traders to make money from their holdings.
5. Accessible 24/7
Money is never asleep. This is a popular saying heard in major financial centers such as London as well as New York. However, the stock market and banks are only open all hours of the day, and closed on weekend. What happens if you face an emergency during the night and require funds? What if your family located in a different location and suddenly needs money over the weekend? You can’t rely on market prices to liquidate your portfolios or banks to transfer money into these types of instances.
It is a good thing that you can trust cryptocurrency. Cryptocurrencies are readily accessible 24×7 all year round. You can trade or buy cryptos at any time as exchanges are available 24 hours a day including on the weekend. It is also possible to transfer money to family and friends in the event of a crisis without having to rely on bank or any other middleman. This is among the major advantages of making a decision to invest in crypto with Finsa Investment.
6. A high degree of security is required when performing transactions
Transactions in cryptocurrency are secured using cryptography. It makes sure that only authorized individuals have access to your personal information.
Because it is built upon blockchain technology, it’s very difficult to make fraudulent transactions using cryptocurrencies. Every person on the blockchain network has copies of all transactions made within the network. If anyone attempts to create an untrue transaction, the others will be aware.
Transactions in cryptocurrency are also unchangeable. Once a transaction has been recorded, it can’t be altered, thereby preventing altering the records.
7. Quick and efficient
Have you ever attempted to transfer money to another country? For context it could take two weeks to send money India into New York, USA. This is due to the lengthy chain of intermediaries the transaction must pass through. The cryptocurrency market disrupts the entire process.
You can transfer cryptocurrency worldwide in just a few minutes, and for less cost of regular bank transfer. This makes it quicker and efficient. This is an advantage to investing in cryptocurrency as the applications of cryptocurrencies for international payments could have enormous potential.
8. Pseudonymity (Private)
While blockchain transactions are publicly accessible however, they are also pseudonymous. Every user has a private and private address to identify them. It is a 26-35 character long alphanumeric code. Public addresses are your pseudonym identity , through which all transactions are identified . It can also be shared with other people in order to send crypto currency to you. A private address is where you can access your cryptos.
Addresses that are public and private ensure that transactions are secure.
9. Control of your assets
Two keys are required: the public key and the private key, which is needed for access to the digital wallet (just like a safe in banks). This digital wallet holds all your crypto-related holdings. Your public keys are kept by your exchange. All you require is a password, or private key to access your digital wallet. access your crypto accounts from any location and at any time.
There is no way for anyone to access your account using only one of your keys. If someone were to access your public key, they won’t be able access your crypto assets using your private. Consider it an encryption device. It gives you total management of your belongings.
10. They are digital
There is no need to worry about thieves stealing your cryptocurrency, right. Like we said the privacy and security of blockchains ensures that no one is able to get your crypto. Since it is completely digital, you don’t need keep a purse around or fret about it getting lost or picking it up. If you can remember the login details to your wallet on the internet and you have access to your funds from any location.
What is the best way to choose the most suitable Platform and Cryptocurrency for Investment?
Every person has a different degree of risk-aversion and goals in their investment. Therefore, choosing the best cryptocurrency is different depending on the individual. It’s not advisable to copy and paste the work of others. Find out the basics of cryptocurrency and narrow down your list of cryptocurrencies depending on your risk-taking capacity and goals.
In terms of how to select the best investment platform for them, they should first look at three aspects.
The platform must be trustworthy and reliable.
What is the fee arrangement of this platform appear to be? The cost of fees can be quite high!
If their product helps you in your investment decisions, then they are a good choice.
How can you safeguard yourself From Scams and Fraud When you invest?
The best way to safeguard yourself from fraud and scams when investing is to do your research (Do your homework). The web is full of self-proclaimed crypto experts and self-proclaimed gurus. Be wary of anyone when making investments.
Cryptocurrencies are the Future
The cryptocurrency blockchain is a technology that is a decentralised system. It is a huge opportunity to remove the dependence on any central authority.
In spite of the many advantages of investing in cryptocurrency however, it is important to be aware that any investment comes with the risk of. The cryptocurrency investments are also. But, you shouldn’t allow fear of risk hold you from investing in these investments.
1. Are investments in cryptocurrency a sound option for you?
It is true that investing in cryptocurrency might prove to be the best option. They are a new asset class. With the increasing acceptance of cryptos and the internet 3.0 the demand for cryptos will likely be able to increase rapidly. As a prudent investor, you need to profit from the early mover advantages by investing into cryptos.
2. Are you able to make money through trading in cryptocurrency?
Let’s be clear about this: cryptocurrency is not a lottery ticket. They aren’t going to instantly make you rich. If you choose to invest smartly, by conducting your own research, or by making use of structured products such as Coin Sets, you may make a profit from your cryptocurrency holdings.
3. Are Bitcoin an investment that is risky?
Every investment comes with the risk of. Bitcoin has a variety of market risks , including the volatility. But, it is not a reason to be scared of it. Bitcoin has seen a couple of downturns that were quite severe, but it has always bounced back.
4. The cryptocurrency I should put my money into by 2023?
Selecting the right cryptocurrency can be a daunting task. Every person has their own desires and needs; consequently there aren’t any cryptos that are suitable for everyone. If you are a novice you could make a bet on a reputable blue-chip cryptos such as Bitcoin and Ethereum and others.
5. What is the best way to select the right investment for a cryptocurrency?
It’s as simple as doing the research yourself (DYOR). First, you must understand your risk tolerance and create an investment target. Do some research about the projects or cryptos you would like to invest in. The best crypto investment is one that fits your risk tolerance and objectives.