Interested in Crypto? Here are 5 Reasons Why You Should Start Investing Now
There’s very little doubt that, over the years, cryptocurrency has skyrocketed in value. From Bitcoin (BTC) to Ethereum (ETH), the value of cryptocurrencies is getting more and more relevant when it comes to financing and investing. Most people believe that the more you invest now, the more chances you will become a millionaire or even a billionaire.
Now, of course, this is just speculation since the growth of cryptocurrency is fluctuating at best, but if you compare its value now and the past ten years, it’s no wonder why more and more people are considering investing in cryptocurrency. And here you are right now, considering investing some money into it. But why should you? Here are some reasons why.
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Earn Lucrative Returns
The word “potential” can be used in two contexts in cryptocurrency. First, since cryptocurrency is a relatively new concept, there are a lot of possibilities to be had. For example, if a non-crypto brand adopts the technology associated with crypto, the chances of crypto being valued are more, especially Ethereum and Bitcoin.
Second, the word could also refer to the potential returns you can get when investing in crypto. And when we’re talking about returns, we’re talking about high returns. With the current forecast, it’s predicted that Bitcoin will only get higher in value in the next few years.
It Protects Your Wealth from Inflation
Inflation can happen anytime. It’s happening right now due to the rising prices in the market. Market inflation can significantly affect flat currencies like the pound or dollar. However, inflation doesn’t do the same with crypto. How? Crypto is decentralized, and cryptocurrencies have a supply cap.
Also, crypto isn’t controlled by the banks and the government, so it has a far higher chance of growing in value over time. Crypto has a higher growth rate than flat currencies, albeit crypto’s value grows more slowly. However, that doesn’t mean that inflation can’t entirely affect crypto.
If more cryptocurrencies are mined, that would mean that the value of crypto will go down significantly, which is why a cap is implemented to avoid this situation. One good example of this is Bitcoin. The rate of Bitcoin mining is reduced by half every four years. This way, the scarcity will remain, the inflation rate will be negligible, and the value only has more room to grow.
It’s Secure and Transparent
One common reason people fear going into crypto is those stories of people losing their crypto wallets. It’s a logical fear, but that only happens when you’re negligent and too trusting of people. It’s just like handling your money in real life, where you lose your bank account to someone you thought would manage your finances only to steal all the money inside.
Luckily for us, decentralized crypto trades happen through tight and high-security channels. The concept of crypto is guided by hash rate. The hash rate measures the computational power per second used in mining.
That said, the higher the hash rate the coin you picked has, the more secure it will be. Of course, the hash rate can only do so much. The first level of security you have is you, which is why you should still avoid phishing scams and the like. Luckily, popular cryptocurrencies like ether and bitcoin have set up strong security mechanisms, which would require a hacker to buy a very expensive computational device.
Helps in Your Portfolio
If you want to diversify your portfolio, delving into crypto should greatly help. Cryptocurrency is another medium used nowadays for your portfolio. Simple trading crypto can diversify your portfolio, especially if you select popular cryptocurrencies like Bitcoin and Ether. You can even go for stablecoins like USD Coin and Tether. You can also opt to lend them out as an investor and treat them as high-yield accounts, adding more profit to your portfolio.
Ensured Transactional Freedom
Crypto payments are made by third-party platforms that don’t charge transactional or service fees. Also, they are open 24/7, unlike stock markets that always close on the weekends. This way, you can trade and pay with crypto anytime and anywhere, as long as you have a fast and steady internet connection.
Not only that, creating a crypto trading account is easy and can be done in less than 5 minutes. That said, if you decide to delve into crypto right now, you can create an account immediately without hassle, like how you can create an account for a quick loan advance from an online lender in only a few minutes. It’s fast and very easy.
Final Words
Cryptocurrency has been getting more and more popular throughout the years. It may have dealt with some major controversy in the past, but its value is steadily growing faster. That said, if you’re still hesitating on whether you want to delve into it, maybe this is the sign you’re looking for.