In recent times the world has seen some iconic changes in the economy due to cryptocurrency. In the past one to two years digital currency has become a topic of interest among many businessmen and investors. Cryptocurrency investment has risen but many investors and traders are still skeptical about cryptocurrency investment.
Recent history has shown that it is a very good idea to invest in bitcoin and other digital currencies. Although it is a risky investment, it gives high returns and it has other advantages which we will talk about in this article.
1) Incredibly high returns – It has not been a very long time since cryptocurrencies were introduced, but in a very short time it has proved to be extremely profitable as compared to other investments. Cryptocurrencies are very volatile, and hence people find it risky to invest in digital currencies. Despite bitcoin and other digital currency investments being risky, the returns and profits are high, which is not the case with other assets. You should have proper knowledge and strategy before investing in crypto otherwise you may lose your profits.
2) Realistic alternative and easy forecast- We have witnessed some major stock market crashes and investors have predicted such a downfall in the past year (2020). In such a scenario, investing in crypto seems a much safer and wiser alternate option for investment. Experts believe that cryptocurrencies will exist and thrive to be profitable. For people with fewer or no experience in investment marketing, the crypto trade can turn out to be risky and cause losses. For people like this, long-term investment is a solution to get guaranteed profitable returns as predicted by experts.
3) Sole proprietorship- You have the liberty to independently invest in crypto, unlike other assets. When you deposit money in your private bank account you have to rely on other organizations and people. It has the possibility of holding your money or limiting access to the money that is rightfully yours. The bank may go bankrupt or your account may get closed at any time. In the case of digital currencies like bitcoin, you hold complete authority over your asset as it is decentralized. There is no need to depend on any financial institution or governmental body for transactions. Cryptocurrency has the potential to become a base for an entirely decentralized economy.
4) High liquidity- The common or primary attribute of any asset is its liquidity. Market liquidity is a feature in which you can buy and sell an asset at a price close to the market rate. Cryptocurrencies have very high liquidity enabling quick and easy trade. There are wide ranges of trading platforms by the virtue of technological organization that allow you to trade your crypto with ease (various exchanges, apps like blockchain technology, and algorithm-based trading).
5) Simplicity- Investing in any kind of asset (stocks, bonds, etc.) is a tiresome and complicated process that requires time and patience. There are investment opportunities that require a big entry threshold and you must have a huge capital before investment. Investing in cryptocurrency is an effortless task. There is no intermediate involvement of external organizations like banks or financial institutions. You can create an account or a wallet by a few easy steps of registration and track all your assets.
With the growth of cryptocurrency and the rising trend in investment, people are urged to be a part of the market. Before entering the world of investment and trade we should all be well aware of the pros and cons that we will face once we start investing. We should learn in detail about the risks involved with the crypto investment. There are many advantages that one will learn with experience. So, you might as well take a leap and start investing in crypto.