6 Advantages of investing in Cryptocurrencies
The birth of bitcoin in 2009 opened the door to investment opportunities in a completely new type of asset class - cryptocurrency. Many entered space very early.
Intrigued by the immense potential of these nascent but promising assets, they bought cryptos at a low price. Therefore, the bull run of 2017 saw them become millionaires/billionaires. Even those who did not bet much reaped decent profits.
Three years later, cryptocurrencies are still profitable and the market is here to last. Maybe you are already an investor/trader or maybe you are thinking of trying your luck. In both cases, it makes sense to know the advantages of investing in cryptocurrencies.
Cryptocurrency Has a Bright Future
According to a report entitled Imagine 2030, published by Deutsche Bank, credit and debit cards will become obsolete. Smartphones and other electronic devices will replace them.
Cryptocurrencies will no longer be considered as outcasts but as alternatives to existing monetary systems. Their advantages, such as security, speed, minimal transaction fees, ease of storage and relevance in the digital age, will be recognized.
Concrete regulatory guidelines would popularize cryptocurrencies and stimulate their adoption. The report predicts that there will be 200 million users of cryptocurrency wallets by 2030 and almost 350 million by 2035.
Opportunity to be part of a growing community
WazirX's #IndiaWantsCrypto campaign recently came to an end 600 days ago. It has become a massive movement supporting the adoption of cryptocurrencies and blockchain in India.
In addition, the recent Supreme Court judgment overturning the ban on RBI crypto banking from 2018 has instilled a new surge of confidence among Indian bitcoin and cryptocurrency investors.
The Edelman Trust Barometer 2020 report also highlights people's growing confidence in cryptocurrencies and blockchain technology. According to the results, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say that the impact of cryptocurrency/blockchain will be positive.
By being a cryptocurrency investor, you are part of a thriving and rapidly growing community.
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Increased Profit Potential
Diversification is an essential rule of thumb when it comes to investing. Especially in these times when the majority of assets have suffered heavy losses due to the economic difficulties caused by the COVID-19 pandemic.
While investing in bitcoin has yielded returns of 26% from the beginning of the year to date, gold has returned 16%. Many other cryptocurrencies have recorded a triple-digit return on investment. The stock markets, as we all know, have performed dismally. Crude oil prices notoriously collapsed below 0 in the month of April.
The inclusion of bitcoin or any other cryptocurrency in your portfolio would protect the value of your fund in such uncertain global market situations. This fact was also impressed by the billionaire macro hedge fund manager Paul Tudor Jones when a month ago he announced his intention to invest in Bitcoin.
Cryptocurrency Markets Are On 24X7X365
Unlike the usual markets, the cryptocurrency markets work 24 hours on 24, every day of the year without fatigue. This is because digital currency systems are essentially designed using pieces of software code secured by cryptography.
The operational plan does not involve human interference. Thus, you are free to exchange cryptocurrencies or invest in digital assets whenever you want. This is a great advantage! The cryptocurrency markets are very efficient in this way.
For example, Bitcoin has successfully processed transactions with 99.98% availability since its inception in 2009.
No Paperwork or Formalities Required
You can invest in bitcoin or any other cryptocurrency anywhere and at any time without unnecessary conditions.
Unlike conventional investment options, where an absurdly high amount of documents is required to prove that you are a "qualified investor", crypto-investment is free for everyone. In fact, this was the goal aimed at by the creation of cryptocurrencies. The democratization of finance / money.
To buy cryptocurrency on WazirX, you need to open an account for which you just need to provide some basic information, including your bank account information. Once they are verified, in a few hours you are ready to go.
Exclusive ownership of the Investment
When you buy bitcoin or any other cryptocurrency, you become the sole owner of this particular digital asset. The transaction takes place in a peer-to-peer arrangement.
Unlike bonds, mutual funds and stock brokers, no third party "manages your investment" for you. You call the buying and selling shots, whenever you want.
The autonomy of users is the greatest advantage of cryptocurrency systems that offers incredible opportunities to invest and build a corpus on your main capital "independently".
These are some of the advantages of investing in cryptocurrencies. We hope that you will find them useful and convincing enough to start your crypto investment journey.
Learn more about what a cryptocurrency is and the things you need to know before investing in crypto on wazirx.com , one of the most reliable cryptocurrency exchange platforms.