The birth of Bitcoin in 2009 opened the door to investment opportunities in an entirely new type of asset called cryptocurrency.
Realizing the immense potential of these promising assets, people bought the cryptocurrency at meager prices. A few years down the line, and saw an influx of huge money and called themselves millionaires and billionaires. Even those who did not buy too many made a substantial profit.
Cryptocurrencies are still profitable, and the market is here to stay. Perhaps you are already an investor or a trader, or maybe you are considering trying your luck. With so much buzz around cryptocurrency investment, you should know their benefits as an investment tool.
Increased profitability
Diversification is an essential investment principle. This is all the more important during this Covid-19 scenario, where most assets have been severely damaged due to economic difficulties.
Investing in Bitcoin has returned twenty-six percent since the beginning of the year, gold has returned sixteen percent. Many other cryptocurrencies have posted three-digit returns. As we all know, the equity markets have had a disappointing performance.
Adding Bitcoins or any other cryptocurrency to your portfolio will protect the value of your fund in such uncertain conditions of the global market.
Crypto is the currency of the future.
Credit and debit cards will become obsolete, according to a report published by Deutsche Bank. Smartphones and other electronic devices will replace these cards. The report also states that by 2030, there are going to be 200 million cryptocurrency wallet users, which is going to rise to 350 million by 2035.
Cryptocurrency or 가상화폐 will no longer be seen as strange but as an alternative to existing financial systems. Its advantages, such as security, speed, minimal transaction fees, ease of storage, and compatibility in the digital age, are all being recognized. Strong regulatory guidelines will popularize the cryptocurrency and increase its authority.
No paperwork required
You can invest in Bitcoin or any other cryptocurrency anywhere and anytime without unnecessary terms and conditions.
Unlike traditional investment options, where a lot of ridiculous documentation is required to prove that you are a recognized investor, investment in crypto is free for everyone. In fact, that was the purpose behind the introduction of cryptocurrencies.
Sole ownership
When you buy cryptocurrency, you become the only owner of that particular digital asset. The transaction is based on peer to peer model. Quite different from bonds, stocks, mutual funds, there is no third-party involvement.
You decide when to buy and sell your crypto. This autonomy is one of the significant benefits of cryptocurrency, which allows you to take care of your investment on your own.
Cryptocurrency markets are always operational.
Unlike typical markets, cryptocurrency markets operate 24 hours a day, all day, without fatigue. This is because digital currency systems are primarily designed with pieces of software code that are protected with encryption.
The operational plan does not include human intervention. So you can invest in crypto trades or digital assets whenever you want. This way, cryptocurrency markets are very efficient.
Comments