If you are new to investing and looking for interesting niches to start your investing journey, cryptocurrency investment is the best choice for you.
While some people choose commercial loans, share trading, and others choose fund startups as their investment choice, do they get the expected returns? How often do they get returns on their investments? These are some thoughts to ponder about especially when you are about to start your journey as a new investor.
Many investments sound attractive and often lucrative too but can involve high risk for novice investors. Such investments might provide you with low or no returns at all. It can be rather de-motivating for you to yield no return over the years especially if you are new to this venture. That is why you should always choose a niche that will certainly give you good returns in the years to come. And what better than investing in cryptocurrencies which are taking the world by storm?
7 great reasons why investing in crypto is a bright idea
Belonging to the digital era, switching to all things digital is but the most common thing to do. Cryptocurrencies are the future and there is not a doubt about it. The future is still young when it comes to cryptocurrencies and you can make the most of it if you plunge into it right now. Here are some reasons why cryptocurrencies are the most happening things to invest your money in:
1. Expect high returns on your investment
Why would you invest unless you yield high returns? Good returns will not only motivate you further but also earn you great profits in a short period. Take for instance the Bitcoins. They have now become synonymous with cryptocurrencies. Way back in 2009, 1 Bitcoin (1 BTC) was priced at less than $1. But now, it has soared to more than $14000 and it is not even in its best value yet.
The potential for growth of this particular coin is immense. Why wouldn’t you want to tap into that potential when there is still time?
The crypto market lacks a transparent regulation at the present moment. This is an advantageous proposition for a new investor since the institutional investors are holding off their investments in this market. The big investors need clear legislation with a proper legal framework. Once there are crypto laws in place, large institutional investors will join the game. The price of the crypto coins will escalate sky-high at that time.
It is needless to mention that the effect will be twofold. If you are an early investor, your profits will soar sky-high too. But if you miss your chance now, it can result in a higher entry barrier for you. Why take a chance when you have the opportunity now?
2. Cryptocurrency is going to soar higher
As per research by Forbes, BTC is about to soar higher. It has the potential to reach $500,000 by the year 2030. It is a boost of 5000% of its original price. Can you imagine?
Other cryptocurrencies are growing at a steady pace too. Often the growth is 100% for some chosen cryptocurrencies by the passing year. So if you have the patience to wait for your returns, you can earn double your invested amount within a year. It is imperative to say that gaining such returns is way better than keeping your money in the bank savings deposit year after year.
3. Expect high liquidity with cryptocurrencies
If you follow the graph of growth for cryptocurrencies over the past few years, you will notice that they have been growing steadily. They are extremely profitable. The best part of investing in crypto is that they are divisible since they are digital. Even if you want to start with a small amount, it is a good opportunity that you should not let go of.
Regardless of the amount you have for investing, you can buy crypto in fraction values. For instance, instead of buying 1 BTC, you can buy 0.01 part of a BTC. The broken Bitcoin or the Bitcoin cent is termed as Satoshi and buying 100,000 Satoshis will roughly set you back by $10. The amount is not going to bother you much but can be helpful to start your cryptocurrency investment journey.
Start with a minimal amount and take it up from there. Once you see the ups and downs of the crypto market, you will automatically start investing more.
4. Get the desired independence and flexibility with your investments
The best thing about investing in cryptocurrencies is that they can be sold easily and even converted. Being a decentralized currency, the banks do not charge any transaction fee on the conversion of the cryptocurrencies. No particular country has total control over the flow of digital currency and hence it is a good investment choice.
There are no restrictions involved in buying or selling cryptocurrencies. All you need is a good exchange for converting these digital currencies. Besides, the crypto market is open all 24 X 7 and hence, it is a dynamic investment. It can earn you profits even when you are asleep. Sell it whenever you feel like you are at a comfortable profit level, regardless of the time of the day it is. The flexibility of the crypto is what makes it a growing popular choice of investment across the world.
5. Unlimited choice of digital currencies
Though BTC is the most popular cryptocurrency at the moment, Ethereum comes a close second. But do you know that there are more than 2000 cryptocurrencies in the market at present?
Some developers or others are continuously creating digital currencies almost every passing day. But since there is unlimited choice for you, you have to invest carefully after thorough research. Watch out for the most promising currencies and keep a track of what the analysts are talking about. Choose the top five or ten cryptocurrencies that fit your budget to start with.
6. Cryptocurrencies can be a great portfolio diversification
Each cryptocurrency has the potential to turn profitable. You need not invest in Bitcoin or Ethereum only. Select the top 5 digital coins like USDC (USD Coin) or Dogecoin that you want to invest in and spread them across various crypto wallets. This will reduce the overall investment risk and earn you a handsome profit from them.
Wall Street is also accepting cryptocurrencies as one of their mode of payment. Cryptocurrencies have a bright future with well-described running mechanisms. Many companies are now opting to convert their capital reserve of dollars to various cryptocurrencies. In the next five years, these digital coins will take over the world completely as more people will join the crypto network.
Having said that, you might look for ways in which you can buy cryptocurrencies. One of the chosen ways to buy is with the USDC. Wondering what USDC is? It is a digital stable coin that is backed by the US Dollar. You can exchange 1 USDC for $1. It is supported on the Ethereum blockchain and represents a 1:1 valuation.
Developed by Circle, each USDC has a dollar held in reserve which is also attested regularly by audit firms. Since 2021, in March, Visa has allowed USDC to settle transactions on their payment network. You can now buy USDC with a credit card too. Once you have the USDC in your digital wallet, you can use these digital dollars to buy any other digital currencies within the crypto market.
7. Crypto has its name written for you
Not many of you are aware that when you have a significant amount deposited in your bank account, it is the bank that controls the money. It might sound too hard to believe but the contract that you have signed with the bank has a clause to it. The clause gives the complete right to the bank to decline the service when they find it suitable. Although the banks do not use this right often, it simply means your money is not truly yours all the time.
When it comes to cryptocurrencies since they are decentralized, you are the sole owner of your currencies and no one can take them away from you. It will save your money in the digital format till the end of time or until when you decide to sell them off.
Conclusion
People’s faith runs the crypto market at present. But jumping into the bandwagon of the crypto market is not a wise move unless you know the nitty-gritty of the market. The above-mentioned reasons will give you some insights into why you should start investing in cryptocurrencies while there is still time.
Cryptocurrency is a young market with the best money-making opportunities for young and new investors. Do your bit of research before investing and be prepared to see ups and downs with your investments. But eventually investing in cryptocurrency is profitable and fun.
Let us know in the Comments section below if you’re planning to invest in cryptocurrencies and which one do you think has great future potential.
