Cryptocurrencies are decentralized digital currencies secured by cryptography, making them impossible to counterfeit by anyone for fraudulent activities. These currencies are based on Blockchain technology, a system that keeps a record of every transaction, and the data recorded can never be changed, manipulated, or deleted by anyone. This sense of transparency and security is what makes this technology so compelling. All cryptocurrencies such as Bitcoin works through this ledger that acts as a public finance database. Also, this is a decentralized currency that means no government can control or regulate its value.
There are many benefits to investing in this digital currency. Mentioned below are five reasons why investing in cryptocurrencies is worth it:
Returns are incredible
Cryptocurrencies have been around for a brief period and are still a new concept for many people. However, even in this small period, this digital asset has gained immense notability being one of the most profitable investments of all time. Experts reckon than investors have the chance to earn huge returns by investing in cryptocurrency compared to their alternatives.
Cryptocurrencies witness considerable variations in their prices over a relatively short period. This means investing in cryptocurrencies involves enormous risk, and one may end up losing all his or her money. Without proper knowledge and a strategy, one must avoid investing in cryptocurrencies.
Earning or losing money while investing in cryptocurrencies strictly depends on market speculation. Given the global economic condition due to the pandemic, the 2020 market is expected to crash, and cryptocurrencies seem a much safer alternative to the traditional investments. As cryptocurrencies emerged after the crash of 2008, many theories exist defining how cryptocurrencies would behave. While many experts expect it to thrive exponentially, others plan to be negatively affected, just like the entire economy.
No one has control over your money
The independence that one user gets while using cryptocurrencies cannot be possible in centralized currencies. While keeping the money in a bank or financial institution is considered safe, there is always a chance of some fraudulent activities or some other emergency. The money cannot be withdrawn. The bank can prevent the depositor from getting access to his or her money at any time. Many different factors may prevent a depositor from doing so as well.
While using cryptocurrencies, there is no such risk involved. A user does not have to depend on any other party to get access to money. Using the credentials, one can withdraw or transfer money from anywhere and at any time.
Liquidity is an essential factor that one needs to consider while investing in any asset. It determines how easily the asset can be purchased or sold. The higher the liquidity, the better it is to invest in that asset. Cryptocurrencies have top cash, and it can be very quickly sold and bought in the trading platforms where one can use many types of tactics and tools. These include limit-orders and algorithm-based trading.
Many people avoid investing money in any bond, stock, or something else because it is a very complicated, tiring, and time-consuming activity. In many cases, the total investment is very high, and not everyone can afford to do so, such as real estate. Inconveniences like these demote a lot of people.
However, there is no such issue that exists with cryptocurrencies. All investors can quickly join it and start trading. Unlike all traditional investments, one does not have to visit any institutions, sign papers, take help from banks. Investing in cryptocurrencies begins with creating an account, getting a wallet, and keeping track of all the assets using zero effort. There are many trading platforms available across the globe where one can easily earn a lot of money. You can try demo for a trading platform where investors can easily make high returns after investing a minimal amount in Bitcoin. Further, it is a safe and secure trading platform where there is no chance of fraud.
The points, as mentioned earlier, make it very clear why cryptocurrencies are a better investment.