Every year, more and more people are using digital currency. As an alternative to traditional cash, big internet retailers and even entire nations use cryptocurrencies. And you can make money with it.
Photo by Mathieu Stern on Unsplash
In this article, we will tell you about key benefits of investing in cryptocurrencies.
Earnings
One of the most, probably, the kay advantages of investing, of course, when you understand this business is earnings.
A lot of people have raised a whole fortune on investments in cryptocurrency:
Changpeng Zhao – $96 billion;
Cameron and Tyler Winklevoss – $1.4 billion each;
Matthew Roszak – $1.2 billion.
Having earned on investing in cryptocurrency, you can afford what you could not before. If it is not the purchase of a new modern car, then in the early stages you will be able to afford suv rental dubai. After all, Dubai is famous for expensive cars. Some of them are owned by someone, but most of them are rented. You can also afford to rent a business class car to go to a meeting, or by renting a sports car you can ride the autobahn with a breeze in a rented Bugatti Chiron.
Rapid market development
Cryptocurrencies are one of the fastest growing assets with a capitalization of over $3 trillion. Of course, most of the market is bitcoin, but its competitors are also “catching up”.
Over the past seven years, the daily trade volume has increased and is presently $16 billion.
Availability
The entry barrier for cryptocurrency investments is still low; anyone can invest in them. For instance, the minimum transaction volume on the same Binance exchange is essentially unlimited; it is entirely feasible to spend only a few rubles on the purchase of a token. Online exchangers show a similar pattern. In addition, it is very simple to locate resources for buying and selling cryptocurrencies, and a substantial portion of them don't require registration or verification – all you need is a wallet to hold your money. By the way, it may also be accessed online in a matter of seconds without supplying valid personal information.
Inflation protection, security and privacy
The value of various currencies has fallen over time due to inflation. Almost all cryptocurrencies are first released with a set amount.
One of the biggest issues with cryptocurrencies has always been privacy and security. The blockchain ledger is built on a number of challenging mathematical challenges..
Diversity of assets
Interested in projects with a gaming or social component? There are StepN, Axie Infinity, Sandbox and many more.
Do you believe in the future of blockchain and want to invest in a technology project? High-speed Solana, focused on Algorand developers, the main competitor of Bitcoin Ethereum, etc.
Do you think that cryptocurrency can compete with traditional financial institutions? Aave lending platform, Function X bank replacement, another lending platform, more popular and versatile JUST, etc.
Liquidity
The system works equally fast in both directions, as rapidly as you can acquire bitcoin, you can also sell it. Therefore, if an investor needs cash, he will be able to get it back almost instantly, unlike the sale of gold or shares. Investing in crypto is a dynamic thing.
Anytime is a good time to buy or sell cryptocurrencies: day and night, weekends and weekdays.
Price spike
The price increase is the key perk of investing in cryptocurrencies, which can occur in a fairly large corridor – 20%-30%. Stocks, on the other hand, rarely rise above 20%.
The timing of cryptocurrency purchases must be taken into account as well. You should not enter the market when demand is very high. After purchasing coins, you become either a trader or a HODLer.
Proponents of cryptocurrencies argue that this downside risk is offset by the possibility of higher returns, and that risks can be managed by appropriately sizing a cryptocurrency position in a portfolio of other investments. The final decision regarding whether to include cryptocurrency in a portfolio is based on a personal evaluation of the relative importance of the benefits and drawbacks.
