You can get rich quickly and easily through cryptocurrency investing. However, there is a lot of noise out there about how to make millions from cryptocurrency. So, let me dispel some myths and give you the real story to make the right decision for yourself. Cryptocurrency, cryptocurrency credit and debit cards, and other crypto technologies are still in their infancy, so there is still a lot of money to be made, but it is not an easy way to get rich.
It Would Help Diversify Your Portfolio
Investing in crypto would help diversify your portfolio, even if you’re not a fan. In general, portfolio diversification is a risk reduction mechanism where investors spread their investments and explore different assets. It’s more or less like putting your eggs in different baskets.
Currently, different cryptos offer different types of profits. You can choose among the ten most popular coins and distribute your reserves across several wallets. This will allow you to reduce risks and earn money if the rate of a particular currency reduces or increases— securities function with the same code.
Further, since cryptos do not move with assets, including stocks and bonds, investing in them is wise to establish yourself in the current highly dynamic world.
You’ll Get Some Sense Of Transparency And Security
Undoubtedly, OneCoin almost tainted the reputation of the crypto industry. However, this did not deter investors as more and more are trusting cryptocurrencies rather than fiat currencies.
Currently, there’s more information available regarding the crypto market. Different websites and social media sites have information and news on how to, what to, and why invest in crypto.
In the current digital age, scams are exposed much faster than before, so investing in cryptos is much safer as long as you use the information presented to you.
Note that most cryptocurrencies are based on Blockchain tech that’s difficult to hack. Blockchain transactions are characterized by private keys, verified public keys, and encryptions—they’re virtually unhackable.
Cryptos Have High Liquidity
If you invest in crypto, your investment will have high liquidity. This means that you’ll buy and sell cryptos quickly.
Take a closer look at how cryptos have been growing over the past few years. Even with a few changes, Ethereum and Bitcoin are still quite profitable. The number of sellers and buyers is constantly increasing, meaning that your currency will always be on-demand— securities operate using a similar method.
Cryptos Are Here To Stay
It’s a little over a decade since the launch of the first cryptocurrency ever, Bitcoin. And yet, numerous changes, innovations, and advancements in technology have occurred in the crypto world.
It’s safe to say that cryptos have altered the traditional financial systems to a defining moment, enabling global transactions at lightning speed processing time and low cost. They’ve reduced the need for central banks to a minimum, giving investors significant control and freedom over their money and financial data.
Although they were called a millennial whim, they’re here to stay. Recent data shows that there are more than 5,000 cryptos out there.
Cryptos Cannot Be Affected By Inflation
Cryptos are fully independent tools for transactions and investments — no country can control their financial flows. That’s why you’ll be free from external factors, restrictions, and inflation.
In fiat currencies, the risk of inflation is always high since the government can choose to continue printing more of it, affecting its overall value. However, in cryptos, such as Bitcoin, their production is fixed, and so their value is maintained all through.
Investing In Cryptocurrency Is Currently Much Safer
Bitcoin long-term investors have a lot to tell about its volatility. It’s hard not to remember how they were disappointed in 2017 when its value reached an all-time high at that time—approximately $19,783.06—and fell to about $3,584.71.
However, the 2019 speculations about its rise came to fruition in 2021 as it rose to above $60,000 in April. In large part, this indicates that the cryptocurrency bubble has already burst. Although investors should still be cautious, the worst has already passed—even if their returns are not as exciting or quick, their odds of being hit with massive losses are much lower.
However, note that there’s always an extreme swing in the price of digital currencies. For instance, after rising to $64,829 in April, Bitcoin dropped to $28,911 in June but has since climbed back to $34,000—still lower than it was in April.
Cryptocurrencies’ extraordinary price volatility and limited actual world use show that many investors are seeking speculative gains. This could mean further instability. We’ve already witnessed how traders who made high-leverage bets about bitcoin falling created extreme price fluctuations. This shows how one factor can easily tip off the scale.
On the other hand, volatility can lead to making significant returns with a comparatively small allocation compare to the size of your portfolio.
The Future Of Crypto Is Bright
Why invest in crypto? Because the future seems bright. Although we’ve mentioned their volatility, cryptos can be a secure and more promising substitute when compared with other assets.
For example, when we look at the jagged history of Bitcoin, it’s clear that it has been through lows and highs but still managed to thrive- especially during the most challenging time brought about by the pandemic. Therefore, most investors are pretty optimistic.
Be part of this new revolution by investing in crypto today. Indeed, most people are going to regret not investing at these initial stages. It is essential to be cautious, but trying doesn’t hurt, especially when notable figures like the Winklevoss Twins and Elon Musk.
We’ve also witnessed crypto’s rebelliousness over the past few decades. It all started with BitTorrent as the first Decentralized Application (DAP) that offered a file sharing, uploading, and downloading platform. We subsequently moved to Bitcoin that introduced the Blockchain Tech and laid a foundation for future coins. Here we are with more than 2000 coins and still moving forward.
It’s Never Too Late To Start
One of the false rumors that keep spreading outside is that it’s too late to start investing. While you may have missed out on some substantial returns, it’s quite improbable that Bitcoin’s value will increase 20,000 times in the coming eight years as it did before dropping down significantly. Investing now will still make you one of the pioneers.
As more and more people adopt these currencies, their values will continue to rise, and they’ll linger on for a very long time. For example, several countries have adopted this currency, including South America, Africa, China, and India.
On the other hand, people only used them for private exchanges; their applications have significantly increased with more adoptions.
Cryptos’ Blockchain Technology Will Transform The World
Indeed, most ongoing projects, be it in the financial or business sector, are bound to disappear since they don’t provide working products or provide those that lack practical applications. However, Blockchain-related projects are pretty stable—financial institutions have started getting involved.
The applications of Blockchain technology are numerous. Blockchain can be applied in different areas, including voting, gaming, business, and medicine, with the current increase in decentralized apps and smart contracts.
During this coronavirus pandemic period, we’ve witnessed how more and more people have turned to online payments and Blockchain to reduce infection rates. Currently, even the strictest governments and open critics are looking to cryptos. Wall Street has also started to recognize cryptos as a feasible way of payment.
Limitless Variety Of Coins
As we mentioned before, having a limitless variety of coins offers you the opportunity to diversify your portfolio and eventually increase your wealth. However, you ought to be careful of scams and meme coins. You also need to be aware of investor buzz.
Dogecoin, which began as a joke, increased rapidly earlier this year to an all-time high as the surging numbers of investors scrambled for digital assets in pursuit of enormous gains. At a particular instance, it was more valuable than Ford and other major companies in the U.S—because of the support from notable figures such as Elon Musk. However, its value has dramatically decreased since then.
Also, Mark Cuban’s token, known as Titan, crashed to zero. Investors lost big time. They probably joined the wave of investing because of the self-made billionaire.
It is also essential to take note of the scams that appeared in 2020. The growth of certain meme coins has increased investors’ pumping and dumping activities as others got burned. When investors lose, the government is forced to step in, which can lead to overregulation. This act can adversely affect the whole industry.
Reasons To Invest In Crypto
- You’ll be able to diversify your portfolio, increase your returns and wealth and have a significant degree of independence in managing your assets.
- Crypto uses the very secure Blockchain technology
- You’ll be counting your blessings very soon as crypto’s future is very bright. You can also opt out easily if you like.
- However, the high volatility presents a huge capital risk. Besides, meme coins and scams can lead to overregulation and some instability in the industry.
- Still, it’s not too late to start your crypto investment journey. Do it today.
Join us on social networks!