The cryptocurrency investment wave has not been subtle for the past few years. The various possibilities that are being introduced to us at every interval have huge implications and are futuristic in the least.
So why is there this sudden trend? How come cryptocurrency investment strategies are being studied on such a large scale? To understand the most common questions regarding cryptocurrency investments and decide if it is a good investment for you in 2021, let us take a look at the reasons that the cryptocurrency space has provided us to help frame our conclusion.
15 Reasons why you should invest in Cryptocurrency: The Cryptocurrency Trend
|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|
|Institutions are taking cryptocurrency seriously|
|The prices of the coins are dictated by the market|
|The Future of cryptocurrency is Bright|
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 there is one lesson that the financial crisis of 2008 has taught us, it is that the traditional banking systems are flawed. The whole of 2020 has shown 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 seeking an option more viable. Cryptocurrencies, with their secure, decentralized nature they have successfully taken any central authority, government, or banks out of the equation. What is more amazing is that the shift towards cryptocurrency is being recognized by the banks themselves.
In the Imagine 2030 report by Germany’s Deutsche Bank, they have stated the fragility of the traditional form of money and how by 2030, more than 200 million people will be using digital money. They have also stated that the traditional money will have an expiration date by then.
Besides them, Twitter’s Jack Dorsey has also stated his belief in Bitcoin to be the single currency of the world one day and has also been looking forward to paying Twitter employees in Bitcoin. Though nothing has been set to 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, 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.
Every one of us or our parents would remember the times when people opposed the internet invention. The doors to the possibilities that the internet would bring in the coming years were not welcomed by the mass. Much similar to how there are some speculations about the possibilities that Blockchain and cryptocurrency investment hold for the now adopters shortly.
Exactly how we rely on the internet for information and communication, blockchain technology is soon going to be the same for any sort of financial transaction.
Better opportunity for yourself: Create success stories
Cryptocurrency provides us with an array of possibilities and opportunities. We just have to be sure to identify and seize the opportunity when it presents itself. For example, one can surely make and receive payments via a crypto account and it can also be used for savings. When does the real opportunity come around then? It comes when one starts investing in cryptocurrencies.
Create your success stories with CoinDCX Go
The early Bitcoin adopters and enthusiasts are now millionaires! If someone had invested a couple of hundred dollars in the last 5 years, the profits would be skyrocketing now! Bitcoin has already made its mark in the industry. The price of BTC is set the rise as more and more investors realize its potential and start investing. Other cryptocurrencies like Ethereum, Ether, Ripple are making their presence heard and are slowly rising the ranks and into the portfolios of savvy investors. Go investing and start making your portfolio a success story.
An alternative for savings
Many analysts would say that cryptocurrencies have always had an inclination towards an upward trend after little dips or series of dips for a particular amount of time. Now let us compare that with regular money. For example, someone took ₹1 lakh in cash and buried it somewhere. They then waited for almost 10 years before actually using the money, but by then the things they could buy with it could be a lot less than when they put it in the ground. This happens because of inflation. Leaving the amount in a bank account would not be of much help because of the interest rate that bank accounts charges, a rate that 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, largely because it is still in its nascent stage. One thing that makes cryptocurrency investing stand out, is the valuation it could have in a couple of years or a few weeks. As there is no central body governing the valuation, they are free from any boundaries and most of the tokens’ upward trend is likely to continue and win out on any volatility. It is this very nature of cryptocurrencies that makes it such a great option for long-term saving, something that will beat any interest rates a Bank can provide.
Devoid of Inflation: Limited Supply
The problem with traditional money is that it is always going down in value. And this is not happening by accident. Governments and central banks do it on purpose. Especially when there is a financial crisis, like the one in 2008, or the one we saw in 2020, due to the pandemic. That is why smarter people trust in assets like gold and real estate more than money. So that when there is an economic crisis, new gold does not just magically appear out of nowhere. And it holds its value, much like Bitcoin and other cryptocurrencies. That means, the biggest asset class, cryptocurrencies, also holds its value. And it is inflation-proof. To explain it further…
The problem with traditional money is that it is always going down in value.
Cryptocurrencies like Bitcoin are numbered. That means there will only ever be 21 million Bitcoins available in the whole world. No one can produce more bitcoins even if they want to. Thus, the scarcity of cryptocurrency assets makes all the tokens that much more valuable. If one misses out on an opportunity, there might not be another cryptocurrency investment opportunity that arises, for a while.
It is an easy introduction: The best way to diversify your portfolio
Even if you are not a crypto enthusiast, investing in cryptocurrency is a great option to diversify your portfolio. What is portfolio diversification? It is simply a great method to reduce risks by spreading your investments and exploring different assets. For example, if you are getting into crypto investments, do sound research on investments and then invest in a couple of different cryptocurrencies. Include a variety of coins from different parts of the world. This ensures that the result of investing does not go only left or right, but follow a curve.
Because cryptocurrency usually does not match with the market movements of assets, such as bonds and stocks. Investing in cryptocurrency is a clever way to establish yourself as a successful investor or trader in today’s dynamic and constantly changing world of finance.
Getting into cryptocurrency investing is much easier than traditional investing. All you need is a smartphone with an internet connection. Because it has got high liquidity you can buy and sell it easily and quickly. There is no high threshold that you have to pass before getting 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 any interference from any government or central body. The market demand and supply decide the value of any cryptocurrency. This is the main reason why altcoins are always an interesting study when it comes to measuring market trends.
Unlimited choice of coins for you to invest in
There is no questioning about Bitcoin’s authority in the world of cryptocurrency investing. The truth is that there are thousands of altcoins available for investors and traders to buy and sell. You have an unlimited choice of coins to help you diversify your portfolio and potentially increase your wealth.
Top Altcoins to watch out in 2021
While some undervalued coins might be a tricky investment, others do deserve attention from the investors and are a good reason to get into investing in cryptocurrency. Experts believe that some of the top cryptos to explode next year are Ethereum, Ripple, Tezos, Tether, Monero, and Bitcoin Cash.
Best security on the market
As Satoshi Nakamoto, the mysterious founder of Bitcoin once said, “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”
On top of that, many cryptos are based on almost unhackable blockchain technology. Blockchain transactions are encrypted, signed by a private key, and verified by a public key. At the same time, the technology offers high levels of transparency. This is another major reason to invest in cryptocurrency.
Zero to the lowest fees by far
For any kind of investment to process, there is always a fee that is demanded while you are either buying, selling, or reserving an asset. This stands true for crypto assets as well, but the difference is that crypto fees are determined by users and that means it is in their interest to keep them low. The rate is much lower than the ones you might have been subjected to by stockbrokers while investing in stocks and bonds.
If you want to explore investing in cryptocurrency with zero fees, try the simplest Bitcoin investment app in the market; CoinDCX Go.
Blockchain is the future: It is not going anywhere
If we are to look at the future possibilities of cryptocurrencies, we have to understand, the whole of any token, Bitcoin or Ethereum or Ripple, is built on blockchain technology, just as Facebook and Twitter are built on the internet. Blockchain is the reason why cryptocurrencies exist.
The noticeable increase in the interest in cryptocurrency investment from the mass has successfully made skeptics and strict governments are more positive about cryptos.
But one does not have 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 different sectors such as gaming, medicine, businesses, and even voting. Gamers would be aware of the impressive innovations blockchain-based technology is bringing into the world of gaming and digital ownership.
Also read: What are NFTs?
The usage of blockchain and the possibilities it possesses have been gaining much more tracking during the ongoing pandemic. As more and more people are turning to blockchain and digital payments to reduce the risk of new outbreaks, more possibilities are being explored. There has been an impressive amount of interest surrounding the downloads of crypto apps during the COVID-19 lockdown since 2020. The noticeable increase in the interest in cryptocurrency investment from the mass has successfully made skeptics and strict governments are more positive about cryptos.
Cryptocurrency investments Lead to high returns
Perhaps the main motivator for people to invest in cryptocurrency is the possibility to make a profit. Making money or having a passive incoming source is one of the main reasons to invest in cryptocurrency.
Though crypto trading is relatively new, cryptocurrency can lead to higher returns compared to other assets, such as stocks or bonds. Cryptocurrencies are highly volatile, which makes it possible to potentially achieve high returns from a single trade.
At the same time, we should also remember that volatility also means that traders can also incur losses. As cryptocurrency investing can be highly demanding, one of the first steps to success is to devise an effective risk management strategy to limit losses. For example, diversify your portfolio. Include various coins or projects that spike your interest and not go all-in on a single token.
Also read: What is Crypto diversification?
Institutions are taking cryptocurrency seriously
With the increasing interest in cryptocurrency worldwide, more and more organizations are going crypto. Ripple, for instance, is an impressive coin used by many big financial organizations. Let’s not forget that unlike the current SWIFT system employed for international payments, Ripple allows users to send money beyond borders at low costs and quick processing times.
Believe it or not, two of the leading crypto exchanges in the whole world, Gemini and Coinbase, are now banking clients of America’s giant JPMorgan.
Governments are also embracing cryptocurrency and going crypto. While many are trying to develop their own central bank digital currencies, others (like Italy) have recognized Bitcoin inheritance. The interest in crypto investing is also increasing in emerging markets, such as Kenya and South Africa. Source: Trading Education
Also read: Institutional interest in Bitcoin.
The prices of the coins are dictated by the market
The price of all cryptocurrencies is decided by the market. It depends on the simple equation of supply and demand. The more the demand, the higher the price and vice versa. Other than that, the prices of cryptocurrencies are also driven up or down by influential investors, such as Elon Musk.
The Future of cryptocurrency is Bright
The future of cryptocurrency is bright. While we all know that cryptos are highly volatile, investing in cryptocurrency is safer and more promising when compared as an alternative to other assets.
For example, Bitcoin. Bitcoin has had a very interesting history. For instance, in 2017, Bitcoin reached its new all-time-highs of $20,000, while in 2018, it fell below $5,000. Yet, Bitcoin has survived its ups and downs and keeps thriving during the ongoing pandemic (with a current price of $39,924.10). In fact, many believe that investing in Bitcoin in times of financial uncertainties is safer.
With various innovations that are coming to light every day, there is no stopping the path that cryptocurrency is paving. It is just a matter of who catches the opportunity when it knocks on the door and who waits until it is too late to catch up.
Top Cryptocurrencies in May 2021: Cryptocurrencies to look out for
Top 10 Cryptocurrencies to look out for in 2021:
|Cryptocurrencies||Price in USD|
|Binance Coin||$ 358.39|
|Bitcoin Cash||$ 753.70|
*Prices as of 20 May 2021