Top 5 Reasons why you should invest in cryptocurrencies today
The Potential for Huge Profits
Cryptocurrency is now the industry that grows tremendously every day and no one is willing to be indifferent. It’s no longer just digital cash. Instead, it is a huge investment opportunity that attracts the attention of large organizations, investors, and traders worldwide.
This new and experimental market is huge with more than 800 digital assets listed on different popular exchanges like Coinmarketcap.com. These are borderless and decentralized coins and probably why they are referred as people’s currency. The coin values are set by market forces of the particular coin, which is a direct result of human sentiments and not an individual’s or institutional decision. There are many types of cryptocurrencies. It’s up to you where you want to invest.
In 2020, most of the people are investing in cryptocurrencies in India. Have you ever thought about why? Well, there are a lot of good reasons why people are choosing to invest in this new form of cash. Some reasons have to do with the coin itself, other reasons are a result of the global financial trend. Other reasons are simply due to the maturing of the cryptocurrency investing industry as compared to traditional investing. Here are the 5 top reasons why investing in cryptocurrencies is the best option for you?
It is a known fact that people are getting rich and are receiving bigger benefits from investing in cryptocurrencies. Initially, when Bitcoin investing first started to take off a decade ago, each BTC worth was merely about $0.30. In the next few years, that number leaped to $13 then to $700 and eventually to an all-time high of just under $20,000 in 2017. Today, BTC is usually trading between $9000 and $11,000. Those who have identified the potential of cryptocurrencies in its initial days and invested in it have made a huge profit in the past few years.
But, one should keep in mind that the crypto market is highly volatile and quite risky. If there is a possibility that cryptocurrencies go up and up and up, there is also a possibility that it does the same in the opposite direction. The Bitcoin value mentioned above illustrates this quite well. So, for investors, it becomes important to analyze the market before investing to avoid loss.
Based on Blockchain Technology
Cryptocurrency is built on blockchain technology. This technology has great potential to establish itself as an independent technology soon. Many people believe that this is one of the inventions in human history which is going to reshape the global economy. Due to Blockchain’s strong security and adaptability features, this technology is gaining mainstream adoption rapidly across the world. Powerful features of blockchain technology have brought digital assets like cryptos in existence and thereby opened a new gate of investment for people all around the world.
Blockchain lies at the core of crypto payment networks. Hence, investing in cryptocurrency could be a better decision to put your money into the new technology of the future. Any emerging technology with a large number of people in it is bound to grow. This growth may unlock the potential for high returns in the long run.
Varied Options Available for Investment
When Bitcoin was the only coin in the market, only a few exchanges were available to buy and sell it. Due to this, only a limited people could invest. That continues to change as more cryptocurrencies are being created. In the current scenario, around 5,000 cryptocurrencies are being traded and many more are being developed continuously. And as the number of investment options increases, so do the exchanges.
As the number of coins and exchanges has increased so as the number of investors. Investors are now able to find cryptocurrencies according to their choice and at a price that keeps them comfortable. Like the rest of the investment, they will not all be winners but many have great potential as a good investment vehicle. Top cryptocurrencies such as Ethereum, Tether, Ripple, Litecoin, and Bitcoin Cash among others are all seen as good investments in 2020.
You will Certainly Use It in the Future
It is said by many that you are not using cryptocurrencies today, you are certainly going to use them in the future. The reason is that businesses are getting more and more involved in the crypto and blockchain startups popping up here and there in different spheres of business.
Also, during this period of economic slowdown which has been caused due to COVID-19, it is clearly illustrated just how interconnected the world’s economy is. This is the reason why people are shifting from stocks to cryptos. Most of the features point to the fact that cryptocurrency will be a very viable form of currency in the future and is something that more companies and investors will adopt and accept in one form or another. There are huge possibilities of widespread and mainstream use of cryptocurrencies in the future which will be beneficial for crypto fanatics.
Cryptocurrency as a Mode of Payment
The primary function of cryptocurrencies is to enable borderless transactions between people without the need for any intermediary and to maintain a high level of privacy. These features of cryptos create a good chance for these digital coins to be used for daily transactions, just like other current forms of digital payment.
Hence, it can be said that cryptocurrencies will become a global form of digital payment shortly. It’s highly likely that we will be able to use cryptocurrency for transactions as it is being increasingly accepted by banks, companies, vendors, ATMs in some countries. All of these factors will add further impetus to crypto coins adoption and will cause its value to grow.