Many experts agree that cryptocurrency is one of the most transformative technologies in recent decades. There are so many advantages to using them that it is hard to imagine the future without their massive implementation. Yet, despite all that, some people are still not convinced about their viability or even legitimacy. If you are on the fence regarding investing in crypto, here are a few reasons that should help you make the decision.
Cryptocurrencies are powered by a technology called the blockchain. Among other things, one of the biggest advantages of blockchain is transparency. Each transaction is public and can be verified. Details like who paid whom are hidden, of course, but since every transaction is encrypted and recorded into a public ledger, they can’t be changed or altered. Transactions can’t be hidden or manipulated, allowing for much better oversight and increased security. Since transparency is inherent in any blockchain network, this should go a long way toward correcting the flaws of traditional financial systems and preventing many frauds from happening.
The supply of all cryptocurrencies is limited. For instance, there will never be more than 21 million bitcoins, as that is the capped amount. That means no government can decide to simply print out more of them and start inflation, vastly reducing the value of your assets. That feature alone could be priceless to investors, especially when compared to investing in fiat currencies.
Cryptocurrencies are accepted worldwide. You can use them anywhere, regardless of your country of origin, as cryptos do not recognize national borders, like fiat currencies. As long as you have access to the Internet, you can spend or exchange your crypto assets. You don’t have to bother with banks or cash, all you need is your phone and you are good to go.
The crypto markets are accessible 24/7 without any limitations, so it is easy for traders to organize their time. They can trade any time they want so that their other obligations during the day don’t suffer. This makes crypto trading an ideal side gig for people with regular jobs, as they don’t have to limit their trading to daytime only. The flexibility and accessibility of the crypto market are just some of the reasons for the popularity of crypto trading.
Diversification of the Crypto Market
There are so many cryptos on the market these days that picking the best cryptocurrency to invest in is an almost impossible task. Depending on their goals and needs, each investor will probably have a different answer to that question. While it may be confusing for newcomers, such a wide selection of different cryptos certainly has its advantages. Many digital coins are designed for a specific purpose and people in that field can see their value. On the other hand, cryptos like Bitcoin are universal, not much different than fiat money. The diversity of the crypto market will help you find exactly what you need.
Potential for High Returns
The crypto market is prone to volatility that can see assets plummet or skyrocket in value almost instantly. It is a basic trait of all unmatured markets, and crypto is definitely not yet mature as it could be. However, it is exactly that volatility that provides possibilities for amazing returns, unheard in other types of investments. Crypto investment is probably the only area where a person can get amazingly reached on a single trade and without having to invest massively. People who invested in Bitcoin just one year ago are rubbing their hands at the moment, and many of them have become instant millionaires. And it was all based on just one decision.
Excellent Long-Term Prospects
Despite all the tumbles the crypto market has taken in the last year, the value is still increasing. Bitcoin set two new records in 2021, once in April and again in October, when its cost surpassed $60,000. Now everybody is wondering when it will hit $100,000. At this moment, the question is not if, only when. That makes the future of crypto a bright one and an excellent choice for long-term investments. Many pension funds these days hold a sizeable chunk of their portfolios in cryptos, ready to cash them in when the price is right.
In the early days of crypto getting all the relevant information, you needed to make an informed decision about investing was hard. The whole thing was veiled in secrecy and ignorance and it was nearly impossible for outsiders to penetrate this shroud. Fortunately, those days are long gone and today we can freely access any information we want or need. This makes the whole investment process that much easier and reduces the risks. Unlike the stock market, you don’t have to be an insider to know what is going on in the crypto world or what new coin will drop next week. This democratization of crypto was the aim from the beginning and we are finally seeing results.
Crypto Is Here to Stay
Cryptocurrencies and blockchain are here to stay. As more and more businesses accept them, especially e-commerce ones, the presence of crypto in our lives will increase exponentially. It is easy to imagine a world where fiat currencies are almost discarded for crypto ones. Such a world isn’t too far in the future and getting on board as early as possible will help you secure a better starting position. Most of us have missed out on early crypto expansion, but don’t let that discourage you from getting in now. As the old Chinese proverb goes, the best time to plant a tree is 20 years ago. The second-best is now.