The cryptocurrency investment wave has not been subtle for the past few years. The various possibilities we are being introduced to at each interval have huge implications and are at least futuristic.
So why is this sudden trend? Why You Should Invest In Cryptocurrency? How are cryptocurrency investment strategies being studied on such a large scale? To understand the most common questions about cryptocurrency investing and to decide whether it is a good investment for you in 2021, let us take a look at the reasons that the cryptocurrency space helped us frame our conclusion Have provided.
12 Reason Why You Should Invest In Cryptocurrency 2021
- Cryptocurrency has revolutionized our world: It is the future
- Blockchain Technology: The best innovation after the Internet
- Better opportunity for yourself: create success stories
- It is a solid alternative for savings
- Devoid of Inflation: Limited Supply
- It is an easy introduction: The best way to diversify your portfolio.
- It is decentralized: no one has control over your money
- Unlimited choice of coins for you to invest in
- Best security on the market
- Zero to the lowest fees by far
- Blockchain is the future: It is not going anywhere
- Cryptocurrency Investments Lead to high returns
Cryptocurrency has revolutionized our world: It is the future
There is no doubt that cryptocurrency is the future of finance as we know it. If the 2008 financial crisis has taught us a lesson, it is that the traditional banking system is flawed. The whole 2020 showed us nothing but how true the lesson is.
Every day there are more and more people who are looking forward to exploring a different viable alternative.
At this point, they are searching for a more viable alternative. Cryptocurrency, with its secure, decentralized nature, has successfully excluded any central authority, government or banks from the equation. Even more surprising is that the shift towards cryptocurrency is being recognized by banks themselves.
In the Deutsche Bank’s Imagine 2030 report from Germany, they described the fragility of the traditional form of money and the more than 200 million people using digital money by 2030. He has also said that by then traditional money will have an expiration date.
In addition to him, Jack Dorsi of Twitter has also expressed confidence in bitcoin to be the world’s single currency one day and is also looking forward to paying Twitter employees in bitcoin. However nothing has been scheduled for action since the announcement.
Blockchain Technology: The best innovation after the Internet
According to experts, blockchain is the next best technological invention after the Internet. So if you are not yet familiar with it, then this is the right time to understand the technology that made cryptocurrency possible.
What Blockchain Technology is for Finance is what the Internet is for information.
Everyone of us or our parents will remember the time when people opposed the Internet invention. The public did not welcome the possibilities that the Internet will bring in the coming years. There is some speculation about the very similar possibilities that blockchain and cryptocurrency investments soon hold for adopters.
Blockchain technology is soon going to be the same for any type of financial transaction, just as we rely on the Internet for information and communication.
Better opportunity for yourself: create success stories
Cryptocurrency provides us with an array of possibilities and opportunities. We just have to make sure that when the opportunity presents itself, recognize it and take advantage of it. For example, one can certainly make and receive payments through a crypto account and can also be used for savings. Then when does the real opportunity come? This comes when someone starts investing in cryptocurrency.
Create your success stories
Early Bitcoin adopters and enthusiasts are now millionaires! If someone had invested a few hundred dollars in the last 5 years, the profits would have skyrocketed now! Bitcoin has already made a mark in the industry. As more and more investors realize its potential and start investing, the price of BTC is set to increase. Other cryptocurrencies such as Ethereum, Ether, Ripple are making their presence known and are gradually growing in the portfolio of rank and knowledgeable investors. Invest and start making your portfolio successful.
It is a solid alternative for savings
Many analysts say that cryptocurrencies are always upward after a small decline or series decline for a particular period of time. Now let’s compare it to regular money. For example, someone took ₹ 1 lakh cash and buried it somewhere. Then they waited about 10 years before actually using the money, but by then the things they could buy from it would have been much less than what they put into the ground. This is due to inflation. Leaving funds in a bank account will not help much because the interest rate from a bank account varies from one bank to another.
Cryptocurrency investment is more volatile than most currencies.
Cryptocurrency investment, on the other hand, is more volatile than most currencies, mainly because it is still in its infancy. The one thing that makes cryptocurrency investing the most different is the valuation that can take place in a few years or a few weeks. As there is no central body governing the valuation, they are free from any limits and most tokens are likely to continue the upward trend and win over any volatility. It is this nature of cryptocurrency that makes it such a great option for long-term savings, something that will beat any interest rates offered by the bank.
Devoid of Inflation: Limited Supply
The problem with traditional money is that it is always going down in value. And it’s not happening by accident. Governments and central banks do this on purpose. Especially when there is a financial crisis, as it happened in 2008, or what we saw in 2020, because of the pandemic. That’s why smart people rely on assets like gold and real estate more than money. So that when there is an economic crisis, new gold does not appear magically from anywhere. And it holds its value just like bitcoin and other cryptocurrencies. This means that the largest asset class, cryptocurrencies, also holds its value. And it is inflation-proof. To explain it more…
The problem with traditional money is that it is always going down in value.
Bitcoin-like cryptocurrencies are counted. This means that only 21 million bitcoins will be available all over the world. No one can produce more bitcoins, even if they want to. Thus, the scarcity of crypto assets makes all tokens more valuable. If an opportunity is missed, there may be no other cryptocurrency investment opportunity for a while
It is an easy introduction: The best way to diversify your portfolio.
Even if you are not a cryptocurrency enthusiast, investing in cryptocurrency is a great option to diversify your portfolio. What is portfolio diversification? This is a great way to reduce risk by spreading your investment and searching for different assets. For example, if you are getting involved in crypto investing, do solid research on investing and then invest in a few different cryptocurrencies. Include different types of coins from different parts of the world. This ensures that the result of the investment does not only go left or right, but follows a curve.
Because cryptocurrency usually does not match the market movements of assets such as bonds and stocks. Investing in cryptocurrency is a smart way to establish yourself as a successful investor or trader in the evolving and ever-changing world of finance.
Cryptocurrency investing is much easier than traditional investing. All you need is a smartphone with an internet connection. Because it has high liquidity, you can buy and sell it easily and quickly. There is no higher limit before you get into cryptocurrency investing. You can start your crypto investment with just ₹ 100.
It is decentralized: no one has control over your money
Yes, no one controls cryptocurrency. All cryptocurrencies are devoid of interference from any government or central body. Market demand and supply determine the value of any cryptocurrency. This is the main reason that altcoin is always an interesting study when it comes to measuring market trends.
Unlimited choice of coins for you to invest in
There is no question about the right of bitcoin in the world of cryptocurrency investment. The truth is that thousands of altcoins are available for investors and traders to buy and sell. You have an unlimited choice of coins to help diversify your portfolio and potentially increase your wealth.
Best security on the market
As the mysterious founder of Bitcoin Satoshi Nakamoto once said, “The basic problem with traditional currency is all the trust it needs to work. The central bank should be trusted not to spoil the currency, but The history of fiat currencies is fraught with a breach of that trust. Banks should be trusted to keep our money and transfer it electronically, but they lend it in waves of credit bubbles, with reserves barely a fraction. ”
On top of that, many cryptos are based on almost inaccessible blockchain technology. Blockchain transactions are encrypted, signed by a private key, and verified by a public key. Also, technology provides a high degree of transparency. This is another major reason to invest in cryptocurrency.
Zero to the lowest fees by far
For processing any type of investment, there is always a fee demanded when you buy, sell or reserve an asset. This is also true for crypto assets, but the difference is that crypto fees are set by users and this means it is in their interest to keep them low. This rate is very low compared to the rate you were paid by stock brokers when investing in stocks and bonds.
Blockchain is the future: It is not going anywhere
If we are to see the future possibilities of cryptocurrency, we have to understand, any token, bitcoin or Ethereum or Ripple is built on blockchain technology, such as Facebook and Twitter are built on the Internet. Blockchain is the reason why cryptocurrency exists.
A significant increase in interest in large-scale cryptocurrency investment has led to successful skepticism and strict governments are more positive about crypto.
But one does not need to be a blockchain developer to see the potential of cryptocurrency and blockchain beyond crypto trading. With the increasing use of smart contracts and decentralized apps, blockchain technology can be used to benefit various sectors such as gaming, medicine, business and even voting. Gamers will be aware of the impressive innovations that blockchain-based technology is bringing to the world of gaming and digital ownership.
The use of blockchain during the ongoing epidemic and its prospects are gaining much higher tracking. As more and more people turn to blockchain and digital payments to reduce the risk of new outbreaks, more possibilities are being explored. Since 2020 there has been an impressive amount of crypto app downloads during the COVID-19 lockdown. A significant increase in interest in large-scale cryptocurrency investment has led to successful skepticism and strict governments are more positive about cryptocurrency.
Cryptocurrency Investments Lead to high returns
Probably the main motivator for people to invest in cryptocurrency is the possibility of earning profit. One of the main reasons to invest in cryptocurrency is to make money or inactive source.
Although crypto trading is relatively new, cryptocurrency can lead to higher returns than other assets, such as stocks or bonds. Cryptocurrency is highly volatile, potentially making it possible to obtain higher returns from single trading.
At the same time we must also remember that volatility also means that traders can also suffer losses. Since cryptocurrency investments can be highly demanding, the first step to success is to design an effective risk management strategy to limit losses. For example, diversify your portfolio. Include various coins or projects that pique your interest and do not go completely on one token.