So, you’ve probably heard all the stories. About all the many people that took the plunge and invested in the Crypto Markets. Albeit with very surprising results. Not everyone, but a lot of people it has really worked out for. So, for this article What Are the Benefits of Investing in Cryptocurrency? Is It Safe?
Well, Cryptocurrency is becoming increasingly popular. It has been following this trend for a good few years now. In fact, most believe for this reason that their money has already been made and there won’t be any more opportunities to make it rich again.
They are, needless to say, far from right. There are so many young people investing in cryptocurrencies still now. This is because the market even now is still brimming with potential.
If cryptocurrency and blockchain technology is used correctly, there is indeed a lot of money to be made. But…
What Are the Benefits of Investing in Cryptocurrency? Is It Safe…
So, Investing in crypto may not be easy, but you should not let the many things you don’t know about it deter you.
It is actually very important to invest in cryptocurrency now because of many reasons!
Despite what some people might say, it is NOT too late.
Many people can’t comprehend this. The idea that it isn’t too late and they haven’t already “missed out.”
More the fool them I say. This just isn’t true.
As easy as it is to invest in bitcoin now. The opportunities are still there. You can still become one of the earliest investors in the crypto market even now (even if it might seem unlikely to increase 20,000 times in value). Do not let this put you off.
It will take some time for cryptocurrencies to gain popularity (this is for certain), but as adoption increases, and people realize that they will be around for some time to come, their value will surely only keep rising.
In fact, it means you are investing at the perfect time because you aren’t seeing 35% rises on your portfolio every morning.
This video below I think you might find quite valuable. It is not wholly my take on things but well worth a watch
More Reasons To Invest in CryptoCurrency
The following tips are some of the reasons why you should invest in cryptocurrency today! Please let me know what you think?
i.) Has the Crypto Bubble Already Burst?
According to many people in Q4 of 2017, Bitcoin and other altcoins were not sustainable because of their almost exponential growth. At the end of the day, it did kind of seem that way if not for a short time. Many experienced a period of strong correction during that year, followed by a period of slow stabilization.
In the end, it just went to show they were very wrong with BTC reaching its All-Time-High of $65K in April ’21. [R]
Despite this, there is a lot more caution among investors, and regulations have been clarified.
Cryptoeconomics are much stringent now than in Q4 of 2017 when one was investing in cryptocurrencies.
If, for example, your profits aren’t going to be as quick or thrilling as you’d like, your chances of experiencing a massive loss are much lower after you purchase Bitcoin. This actually may be true but Bitcoin is only one of the hundreds of coins available to purchase.
ii.) This is the Future of Blockchain Tech
It is hard to think of blockchain technology that isn’t to do with cryptocurrencies. But despite what many might think there are actually several other uses for Blockchain technology, other than tracking financial transactions.
Just in case you’re curious here is a screenshot of what it says on google:
Needless to say nowadays both go hand in hand together. There is no Crypto without Blockchain technology!
So, perhaps investing in cryptocurrency isn’t for you. Everything definitely does hinge on Blockchain tech. Although, if it isn’t apparent it does definitely seem that blockchain alone will remain for a very long time.
Today, there are a lot of projects that likely do not have a long term future. They either don’t offer a viable product, or it is a viable product that has no real-world applications.
Despite that, there are a lot of blockchain projects out there right now that have great potential for success.
It’s just a case of finding the right ones. Getting involved is also great for financial institutions!
There are so many real-world applications of blockchain technology where it can be immensely valuable;
However, due to the fact that we are just beginning to accept blockchain technology as a valuable tool, we should remember that not all projects will succeed. For me, there is a few I think could do well – Electroneum I think is probably one of them.
There are other coins that are made for their privacy-centric features that I am also willing to bank on but ETN. The reason I think it could have potential is 100% for its real-world applications. You can earn it as a freelancer and use it to pay for things like travel and phone credit. Even shopping vouchers from UK supermarket ASDA.
Moving on though another reason to invest in Crypto is…
iii.) The High Liquidity of Cryptocurrencies
We have another valid reason to invest in cryptos this year for you. If you still are not sure if crypto trading is a good idea. One thing to note is trading in cryptocurrencies is characterized by high liquidity. Which means it is easy to buy and sell.
There is always a high demand for the king of cryptocurrencies, Bitcoin. Although, Bitcoin is no longer the only big kid on the block. It still serves as a great example for Crypto Investment in general.
Wallets representing crypto coins have risen to 54 million in 2020, according to data.
Bitcoin isn’t only being bought and sold by big companies and ambitious investors. Recently, it was made legal tender in South American country El Salvador and it is likely other countries with similar fortunes will follow suit.
Investing in cryptocurrency is extremely accessible today.
Trading cryptocurrencies isn’t some type of rocket science, nor is it an industry secret reserved only for the biggest players. You can also get involved with crypto investing right now!
iv.) Investment Can Produce High Returns
Most people who invest in cryptocurrencies do so because they understand truly what money is on the table.
Our world revolves around money, so investing in cryptocurrencies makes sense whether we like it or not.
While crypto trading is a relatively new industry, it can be more profitable than other assets, such as stocks.
As a result of crypto currencies’ high volatility, traders can result in high returns.
At the same time, we shouldn’t forget that volatility can lead to traders losing it all in a matter of seconds.
Therefore, always think about the risks!
A successful cryptocurrency investment strategy can help limit losses due to the high level of difficulty of crypto investing.
v.) Blockchains Offer Tremendous Potential…
Now, back to the original question… What Are the Benefits of Investing in Cryptocurrency? Is it safe?
I think this is a very good set of questions, with a very simple answer. Crypto might not be something you would want to invest in at all. This is understandable as I mentioned above it is a very volatile market. Just as easy as you can make money you can lose money as well.
Not to put you off. I mean there is a silver lining I would say. If you consider the great implications of blockchain technology over the next few years, it will become evident that crypto investments are here to say, and it is the right time to make them.
What are your chances of making millions? You might wonder…
Rarely, there will be a few investors who find excellent projects and get in early enough to make millions. Surely, but it has happened and I would say it could happen again, and again.
Investing in crypto mostly now requires you to keep your coins as long-term investments. However, it really depends on finding the right coin and what its future potential is. I can not tell you what the next best coin will be but I would definitely say Monero could become as big as Bitcoin to some degree. It’s around $250 right now. If you had 16 coins now and this actually happened you would be a millionaire for less than 5K Investment!
Not saying that will happen but if it does – remember where you heard it first!
So, Is Cryptocurrency a Good Investment?
Sure. By owning some cryptocurrency, you can diversify your portfolio.
Since cryptocurrencies like Bitcoin typically don’t correlate directly with the U.S. stock market. This is a very different kind of investment opportunity.
In hindsight, you might want to consider buying crypto directly as part of your diversified investment portfolio.
If you can anticipate cryptocurrency usage becoming more widespread over time. Then why not?
Investing in a cryptocurrency requires a strong investment thesis stating why the currency will hold up over the long term.
If you have this then it may really seem like, if you can act at the right time, there really is nothing to lose.
The rise of cryptocurrencies presents other ways to profit from the trend as well. If buying cryptocurrency seems too risky for you such as staking, mining and farming.
Coinbase, Square, and PayPal are just a few examples of companies in which you can invest or you can trade on an exchange like CME Group (NASDAQ: CME), which facilitates the trading of crypto futures.
It is not as lucrative to invest directly in crypto as it would be in these companies, although they can still be profitable.
In Conclusion –
The Benefits of Investing in Cryptocurrency
One thing that springs to mind for me is crypto stocks (different currencies) do not require any fees like investing in the stock exchange. If you are looking to invest in shares the usual scenario is you will have to pay fees every (I think) month or quarter. I dabbled in the stock exchange a few years back now and this was one of the biggest cons.
With Crypto, there is no such thing as paying these fees. The only time you likely will have to pay fees is when making trades on exchanges such as Coinbase but you can exchange between Cryptos for free.
Another thing and I want to be careful about saying this but depending on your jurisdiction you may also be able to save on things like Capital Gains Tax (CGT). Read my article about this here. Basically, in some countries, they do not tax you on Crypto Currency so it isn’t always like with shares that the taxman gets to take a nice fat slice of the pie.
This will be something to watch out for in the future more so but there are a lot more ways around this with Crypto as long as you know what you are doing. This is actually the thing I like the most there is actually a lot of things you can buy with just Crypto. There is even a website where you can buy real estate and another where you can buy cars etc.
You can also make a lot of money with the right investments as well. $100 spent on Bitcoin back in 2009 imagine that lol
So those I would say are the benefits of investing in cryptocurrency. If you have any questions or would like any help please let me know in the comments section.
Alex B. Chivers & Jacob B. Chivers