The inception of bitcoin back in 2009 set the stage for a new kind of investment opportunity, cryptocurrency. The initial launch was met with skepticism, but all that changed in 2017 during the bull run.
The limelight was indeed on bitcoin as investors reaped big. Ever since, cryptos have become the buzz word, and their numbers have swelled to include new entrants like Litecoin, Ethereum, and Ripple, to name a few. But why should someone risk it all with cryptocurrencies? Read on as I delve deeper into digital currencies and detail their benefits.
When it comes to investment, diversification is vital. Savvy investors spread their risks across various platforms to minimize heavy losses. However, global market situations continue to look gloomy. Stock markets are bleeding, while gold and oil prices continue to falter.
The answer to this investment conundrum rests in cryptocurrencies. Since the turn of the fourth quarter of the year, bitcoin’s returns are up to 42%. Other cryptos have also posted impressive ROIs during this COVID-19 period. Take billionaire Paul Tudor’s word, cryptos like bitcoin are a ‘great speculation.’
Conventional investment opportunities are full of absurd documentation and bureaucracy. Despite having the cash to invest, these platforms require one to prove themselves as accredited investors. At play also is geographical restrictions and countless background checks.
The invention of cryptos was meant to democratize the financial sector by solving the mentioned issues. Unlike traditional methods, crypto-investment is open for all. There are no restrictions, and anonymity is always guaranteed. Besides, no institution or jurisdiction controls crypto trading.
The world is quickly transforming into a digital economy. Several reports project that digital wallets will replace debit cards, credit cards, and bank transactions by 2030. Cryptos will no longer be viewed as outcasts but the mainstream monetary system.
So long as digital wallets maintain their integrity, the adoption of cryptocurrencies is almost unstoppable. According to Deutsche Bank’s article dubbed Imagine 2030, the number of digital wallets will rise to 200 million by 2030. These forecasts indicate that digital currencies are the way to go.
The term liquidity is tied to the easiness of buying or selling an asset close to its market rate. Liquidity characterizes most investments. The higher the liquidity, the likelihood of purchasing and selling the asset, while the reverse is true.
Cryptocurrencies are known for their high liquidity. As an investor, I can quickly sell or buy currencies through the many trading platforms available online. What’s even more impressive is that I can trade using many tools like algorithm-based trading and limit-orders.
The majority of transactions in blockchain technology are peer to peer arrangements. Once I purchase a cryptocurrency, I become the sole owner of that digital asset. Unlike bank cash, bonds, and stocks, there are no brokers or third-party involvement. I can access my money at any time and place without limitations from financial institutions or the government.
Cryptocurrencies allow for user autonomy and the chance to develop a corpus on one’s principal capital independently. There aren’t any exorbitant or miscellaneous fees. With cryptos, I call the shots whenever whatever time I want.
Cryptocurrencies involve users converting their money into secure digital assets. The banking system and prying eyes of most jurisdictions are completely bypassed via electronic wallets. With numerous digital wallets available, investors can choose their preferred wallet. Personal information is not shared since transactions use random addresses as opposed to phone numbers or account numbers.
Invest today in cryptos and enjoy all the perks of a decentralized economy.