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Reasons People Buy Cryptocurrencies

Is crypto a good investment?

Blockchain technology and cryptocurrency have taken the planet by storm and it’s no surprise that more and the masses are on board with crypto investing.

There are a variety of reasons people invest in cryptos to reach their financial goals.

However, there are those who invest in the cryptocurrency market for the wrong reasons.

Here are the top 15 reasons each investor should include cryptocurrency in their portfolio.

15 Reasons to Invest in Cryptocurrencies

1. The Cryptocurrency Market has Changed Our World

It’s been less than 10 years since the introduction of Bitcoin – the first crypto ever. Yet, thousands of technological advances, innovation and changes have occurred in the dynamic world of cryptocurrency trading.

Thanks to their decentralised nature cryptocurrencies have changed existing financial system structures up to the point of no return, facilitating transactions across borders with low costs and fast processing times.

The great news is that the necessity for central banks is cut to a minimum providing investors with a great deal of autonomy and control of their finances information and their money.

And I’m telling you what! Crypto investing is not just a trend for the millennials, but a reality: cryptocurrencies are in the future and are worth investing in. The number of crypto projects is increasing, and according to data that are available, there are more than 5,000 cryptos to invest in out there.

2. Cryptocurrencies Are Marked by High Liquidity

If you’re not sure if crypto trading is right for you, there is another reason to invest in crypto this year. The world of cryptocurrency trading is marked by high liquidity, meaning that it’s easy to buy and trade cryptos.

When it comes to Bitcoin For instance there’s always a huge demand for the queen of cryptography. The data show that the number of wallets with cryptos in 2020 has increased to over 54 million.

There are not just ambitious large corporations and investors that are prepared to buy as well as sell bitcoin. Crypto trading today is highly accessible.

It is true that trading in cryptocurrency isn’t some sort of scientific research or a mystical enterprise reserved for the largest whales of the industry. It is also possible to be part of the world of cryptocurrency investing today!

3. Investment in Cryptocurrency Can Bring Profits that are high

Perhaps the main motivator that people put money into cryptocurrency is chance to make money. It’s true that money turns the world and is among the major reasons why people buy crypto.

Though crypto trading is relatively new, cryptos can lead to higher returns than other assets like stocks. Cryptocurrencies can be extremely volatile and, therefore, one can earn high returns from a single trade.

But keep in mind that volatility can also mean that traders could lose everything in a split second. So always consider potential risks! Since investing in cryptocurrency can be very demanding The first steps to success is to devise an effective risk management strategy to limit the loss.

4. Cryptocurrency Provides Independence and Flexibility

Whether you choose to invest in Ethereum or Tezos your cryptocurrency money is only yours. Like we said cryptocurrency does not rely on banks that have exorbitant costs to hold your cash.

Additionally, the market for cryptocurrency is open 24 hours a day, so there is no need to fret about opening times and you can decide when and how to buy or sell. Isn’t it a good enough motive to invest in cryptocurrency?

That’s right! It’s entirely up to you to manage your time and your trading routine. It is possible to trade on a part-time or full-time basis, and you can even trade cryptocurrency while travelling too. What’s that?

5. For Portfolio Diversification

Need more motives to consider investing in cryptocurrency? Even if you are not a crypto fan investing in cryptocurrency can be an excellent way to diversify your portfolio.

What is portfolio diversification? It’s basically a way to decrease risk by spreading out your investments and taking a look at various assets. According to the saying, you shouldn’t put all your eggs into one basket, do you think? !

Because cryptocurrency isn’t able to move with assets, such as stocks and bonds, investing in cryptocurrency is an effective method to make yourself a successful trader in the current and always-changing world of finance.

6. Unlimited Coin Choice

Even though no one doubts Bitcoin’s authority in the world of crypto investment, the truth is that there are a myriad of altcoins available to purchase and sell on the market. You can pick from an endless array of coins to help diversify your portfolio and possibly increase your wealth.

While some undervalued coins might be a tricky investment, others do deserve your attention and provide a compelling incentive to consider investing in cryptocurrency. Experts think that the most prominent cryptos expected to explode in the coming year include Ethereum, Ripple, Tezos, Tether, Monero, and Bitcoin Cash.

You don’t have to limit your choices to trading and buying cryptos. You are also able to trade a broad range of crypto/crypto and crypto/fiat trading pairs, with BTC/USD, ETH/USD, and LTC/USD being among the most well-known trading pairs of crypto to fiat to trade.

7. The future of cryptocurrencies appears bright

Do you need additional reasons to invest in cryptocurrency? Here’s the reason No.7: The future of cryptocurrency is bright. While we know that cryptos can be extremely volatile, investing in cryptocurrency can be a more secure and profitable option when compared with other assets.

Take Bitcoin, for example. Bitcoin can be described as having a bumpy time in its history, and even declared lost multiple times. In 2017, for instance, Bitcoin reached new all-time-highs of $2000, and in 2018, it dropped to below $5,000. Yet, Bitcoin has survived its ups and downs – and is still thriving in the current epidemic (with an estimated cost of $18,826) – so investors are quite positive about its prospects.

Many people consider that investing into Bitcoin in the midst of financial instability is safer. According to Snappa (Canada’s top software company) co-founder Gimmer declared, “Would you rather save money in a currency whose supply is increasing each year? Or would you rather save money in a country whose final supply is fixed programmatically ?… I am convinced that we have a superior savings technology available us. That technology has been called Bitcoin.”

8. Cryptocurrency Provides Security and Transparency

Although many people think of cryptocurrency as a source of illegal activity and infamous scams, such as OneCoin, investing in cryptocurrency is a lucrative business, with more people trusting in cryptos rather than fiat currency.

As Satoshi Nakamoto – the mysterious character behind Bitcoin was once quoted as saying “The main issue with conventional currency is the trust that’s required to make it work. The central bank must be believed to not alter the value of currency, but it’s been a long time since fiat currency has had a history full of breaches of that trust. Banks should be trusted to protect our cash and to transfer it electronically however, they loan it out in the form of credit bubbles that have barely an ounce of reserve.”

Furthermore there are many cryptos based on blockchain technology, which is considered almost unhackable. Blockchain transactions are encrypted that are signed with private keys and validated through a public keys. Additionally the technology allows for high levels of transparency – this is a further motive to consider investing in crypto.

9. Blockchain Technology Can Transform the World

Need more motives to consider investing in crypto? It doesn’t take a blockchain developer to see the potential of cryptocurrency and blockchain beyond the realm of crypto trading.

With the increasing use of smart contracts and decentralised applications, blockchain technology can benefit various sectors, such as medical, gaming, business, and voting. Ask any gamer about the incredible innovations blockchain technology can bring to the gaming world and digital ownership!

In the current outbreak, particularly, more and users are turning towards blockchain and digital payments to decrease the chance of developing new outbreaks. Data show an increase in the number of downloads of crypto-related apps during the COVID-19 lockdown that will take place in 2020. Nowadays, even the most skeptical governments are more enthusiastic about cryptos and the regulations getting much clearer.

10. Everybody is Taking Crypto, Even Wall Street

With the increasing interest in cryptocurrency worldwide, more and more organisations are going crypto. Ripple is one example. It is a popular cryptocurrency utilized by numerous large financial organizations. Don’t forget that, unlike the current SWIFT system to pay international transactions, Ripple allows users to transfer money over borders at low costs and quick processing time.

There’s a good chance that two of the biggest crypto exchanges around the globe, Gemini as well as Coinbase, are now banking clients of the US-based giant JPMorgan.

The government is also taking on cryptocurrency and are embracing crypto. While numerous are working to create their own digital currencies for central banks while others (like Italy) have recognised Bitcoin inheritance. The interest in investing in crypto is also increasing in emerging markets, like Kenya or South Africa.

Guess what? Major merchants like Virgin Galactic and Microsoft also accept payment in Bitcoin. Do you really need additional motives to consider investing in crypto?

11. Learn New Skills

It doesn’t matter if you decide to buy Bitcoin or trade various crypto-currencies, the reality is that you have to invest in proper trading education to learn the art of cryptocurrency investment.

Even if you’re not a millionaire by investing in crypto, your education process will have a positive impact on your trading abilities and financial decision-making. From day trade strategies to trading psychology strategies, learning about cryptocurrency investment is worthwhile and valuable.

Additionally, as you work to improve your financial skills and abilities, you’ll be able to increase your control of your emotions, discipline, and your behavior as well. It is after all an ongoing process.

12. Crypto Investing Has Never Been This Easy

The the main reason No.12 to make a decision to invest in cryptocurrency is… it’s never been simpler to make investments in crypto. Technology-driven society allows people from all walks of life to learn about cryptocurrency. From online classes to books on trading psychology you can get started with crypto trading for free.

The volume of information available on trading present in the market today is staggering. A growing number of websites and forums offer valuable crypto information , and are quick to identify scams. You can easily locate an instructor as well as learn from the best professionals in this field. Just look at some of the crypto kings, and their successes tales!

Smart devices and online platforms simplify investing in cryptocurrency All you have to do is sign up for an account, deposit funds, and start trading.

13. Low Entry Threshold

While certain kinds of investment, such as stocks and real estate require lots of capital at first to begin investing, cryptocurrency is low thresholds for entry. Aren’t there a good reason to make a cryptocurrency investment?

The good news is that many platforms available do not need large amounts to begin trading in and buying cryptos. You can start trading cryptocurrency starting with just $100.

In fact, there’s no need for lengthy and cumbersome procedures and burdensome documents.

14. Exchanges are extremely secure and provide valuable tools

As we all recall the tragic story that was the scandalous Japanese exchange Mt. Gox but the good news is that the exchanges are safer and might even reimburse victims in case the hack occurs.

Today, traders can find a reliable exchange to start purchasing and selling digital assets. A trader can also find a trustworthy broker to assist them with trading CFDs (a great option for novice traders).

Tools for trading are easier to use than before and crypto websites aid investors in keeping up-to-date on crypto news and major developments in the field. This is a great motive to make an investment in cryptos do you think? !

15. Never Too Late to Invest in Cryptocurrencies

No matter if you’re a successful Bitcoin investor or a crypto enthusiast There’s no time to wait to get started investing in cryptos. Though some believe it’s past time for you to earn millions (like many of the early adopters in the industry) has passed however, the reality is that crypto investing is still the talk of the town.

Blockchain and cryptocurrency have a long ways to move, so by 2022, you will still be considered an early adopter. The experience of investing in something this revolutionary is simply overwhelming!

15 reasons to invest in Cryptocurrency Important Arguments

The Cryptocurrency market operates all hours of the day and has thousands of cryptocurrencies in existence.
It is a good way to increase your wealth and diversify your portfolio and discover new financial techniques.
The decrease in the stock market can lead the increase of prices of gold and cryptocurrency and thus cryptos are the perfect investment to make if you would like increase the diversification of your portfolio.
It is important to remember that blockchain technology can have impressive applications that go beyond the financial industry So, more and more governments are looking into investing in cryptos in order to limit outbreaks during the ongoing pandemic.

Never too late to make an investment in cryptocurrency market. Stop looking for other reasons to start your journey to cryptocurrency.