One of the hottest topics in investing is currently cryptocurrency. Although the market can be volatile, it might be interesting to buy into it when the price is right for the long term, because ultimately, cryptocurrencies are here to stay. But there are more reasons why crypto might be worth your investment. Take a look at the top seven reasons to invest in cryptocurrency.
You Can Still Make Profits
Cryptocurrencies have been around for a while now, and there is still room to make a profit. With more than 1000 different cryptos to choose from, there are many that are still new and have the potential to go up in value. You can stick with the established cryptos, such as Bitcoin or ether, or you can try out any of the emerging coins. There are many different options, and you can buy fractions of coins if you want to.
You Can Learn About New Technology
Many people have heard of Bitcoin and other cryptocurrencies, but they don’t know anything about the technology behind it. Bitcoin was the first decentralized digital currency on the blockchain. Blockchain technology was first introduced in 2008 as the distributed ledger behind bitcoin transactions. It is now used for many different applications to make transactions more secure and free of regulation. Many of the smaller cryptocurrencies are tied to smart contracts. If you want to learn more it might be interesting to invest.
There Are Low Fees
Although you pay some gas fees when you send cryptocurrency to other people, they are much lower than sending other types of online payments. Sending a bank wire can be expensive, as can paying through a third party payment processor.
When you send Bitcoin and other cryptocurrencies, you will pay a fraction of the fees when you make a transaction. In addition, it is secure because it is recorded on the public ledger on the blockchain, so it is verified, and the money won’t disappear. The entire process is transparant.
Global Adoption Is Growing
Several years ago, only a handful of people were buying cryptocurrency. Slowly, more and more people have become investors, and many mainstream institutions have started investing. They are including Bitcoin and other cryptocurrencies as part of people’s portfolios. As more institutional buyers get involved, the price will become more stable as it increases. It is still volatile, but it is becoming more mainstream and it is being used all around the world.
You Can Diversify Your Portfolio
Another reason to invest in cryptocurrency is that you can diversify your portfolio. Most financial planners recommend having a percentage of your portfolio be higher risk. You can choose cryptocurrencies and diversify within this category. You can buy Bitcoin and also have some cryptos that are more volatile. This is a great option for diversifying your portfolio and adding investments with a large potential upside.
Cryptocurrency Isn’t Controlled by Any Government
People view cryptocurrency as a stable and censor-resistant store of value. It is different from fiat money because there is a limited supply. There is no government to print up new cryptocurrency when they want more. Inflation is created by government agencies, and they have no ability to do this to cryptocurrency.
This means that if you own one Bitcoin today, you will own one Bitcoin tomorrow. The value in fiat may change, but it will always be one Bitcoin. Cryptocurrencies are usually capped by mathematical algorithms, and nobody can manipulate them.
Your Transactions Are Traceable and Transparent
When you invest in cryptocurrencies through a crypto trading platform, you will hold your coins (and fractions of coins) in a digital wallet. You can use one online, or you can use a removable USB wallet. Either way, it is secured by encrypted codes and nobody can access it unless you give them access.
When you make a purchase or send money, you can see the transaction on the blockchain. It is a public ledger. It doesn’t record your name, but it has a transaction ID that is unique to this specific transaction. All transactions are recorded in this way, and you can trace them and make them directly without ever using a middleman.