by Hodler Ash 
Cryptocurrency is increasingly gaining momentum, and for all the good reasons. It is an innovative alternative to traditional finances, a digital or virtual currency secured by cryptography and based on blockchain. Found in 2008 by an unknown person(s), cryptocurrency commenced its journey in 2009 after its implementation as an open-source market. The ideology behind crypto is entirely different from any other digital currency or wallet. It is relatively complex; to date, no one knows everything about this impeccable technology.
From an investment point of view, crypto carries significant risks and benefits. Although it is primarily volatile, sometimes crypto investment can be highly remunerative. Several kinds of cryptocurrency include bitcoin, dogecoin, Ethereum, Tether, etc. As of March 2022, there are more than 18,000 cryptocurrencies worldwide. What is more interesting is that each cryptocurrency carries different values. Currently, bitcoin has the highest price and market cap.
All in all, crypto is an emerging trend, with many people considering investing in it. In this article, we will discuss why cryptocurrency investment is a viable idea today.
Let’s have a look:
1. Revolutionary invention
The crypto market has been growing exponentially since it first began penetrating every sector and domain. Bitcoin’s first price was $0, but the bitcoin price today is approximately $22,000 – though it keeps changing. That is a massive jump in a matter of fewer than fifteen years. These statistics prove how valuable and relevant cryptocurrency has become in recent years. Moreover, the consistent innovations, upgrades, tech advancements, and changes confirm the revolutionary and growing nature of crypto trading.
Cryptocurrency is constantly altering and replacing traditional financing methods through its decentralized methodologies. Since it has become highly relevant, many experts claim that there is no going back to conventional ways. The best part about investing in cryptocurrencies is the absence of an intermediary and minimal involvement of the central bank. That means you have more freedom and control over your finances.
2. Easy to begin
Many people steer clear of blockchain technology because they presume it’s challenging to adapt. However, you’d be surprised to know that getting started with crypto is relatively straightforward. A famous misconception about cryptocurrencies is that they are unnecessarily complicated. However, it’s easy to explore such a mode of investment.
Before investing in cryptocurrencies, ensure to remember a few rules. First, do not invest a large sum if you are a beginner. It is best and advisable to begin your investment in crypto with a fraction of your total amount. Second, several cryptocurrencies are available, each with distinguishable features. Do thorough research and select a token that best matches your portfolio and risk appetite. A good idea would be to start with bitcoin. Bitcoin is usually the safest bet for most newcomers. These tips will help you make fruitful investments and earn good returns. Further, they will also help you understand the crypto landscape better.
3. Protection from inflation
Inflation can affect fiat currencies significantly, devaluing them to the extent that many individuals face irrecoverable losses. However, the case with decentralized currencies such as crypto is not the same.
One of the most crucial benefits of cryptocurrencies is their protection against inflation hikes. Unlike fiat currencies, governments and banks cannot manipulate cryptocurrencies because they have a cap on the supply. It also means cryptocurrencies can earn significantly more returns than traditional currencies. However, it is essential to note that cryptocurrencies are not free from inflation. If cryptocurrencies increase, their value will likely go down in the market.
4. Diversify your portfolio
Investment diversification refers to investing in several different kinds of investments. Diversifying your portfolio can help reduce the risk by spreading money across other assets. Moreover, it reduces the impact of market volatility, helps keep the capital safe, helps achieve long-term plans, and helps seek advantage in different investment instruments.
Similarly, investing in cryptocurrency gives you the unique benefit of diversifying your portfolio. As mentioned above, crypto investments are entirely different from traditional finances. If the stock market collapses or inflation hits, cryptocurrencies remain indifferent because they play by their rules. Crypto investments allow you to add decentralized and globally interchangeable assets to your portfolio. And this is something fiat currencies can never offer.
5. Higher transparency
A winning argument in favor of investments in cryptocurrencies is that they provide a unique type of transparency in transactions that do not violate anyone’s privacy. All crypto transactions go through encryption on a publicly distributed ledger. Hence, it becomes excessively challenging to alter or manipulate them. In many ways, the cryptocurrency’s transparency feature solves many problems the traditional financial system poses.
More transparency enhances the understanding of a system. Moreover, when everyone has mutual access to data, opportunities for success become more desirable.
6. Flexibility
Another benefit of investing in cryptocurrencies is the flexibility they provide. Crypto trading markets are available 24 hours a day. That means traders can organize their investments and funding any day. It is a massive advantage and wins against traditional investment restricted by time. So, with crypto, you can trade full or part-time.
Furthermore, cryptocurrencies provide you with more independence. Your crypto coins are only yours since cryptocurrencies do not rely on banks or intermediaries. Flexibility and independence are essential features in investments. They enhance investment ability and increase an individual’s risk appetite.
7. Evolving acceptance rates
The last and most convincing reason to invest in cryptocurrencies is their growing acceptance around the globe. Several retail stores – big and small – accept cryptocurrency as a payment form. It shows that cryptocurrency has value outside the screen and in the real world. Many people disregard cryptocurrency because they believe it is all a game. However, this perception significantly altered after brick-and-mortar began accepting payment in bitcoin.
Hence, purchasing real-life goods and services using crypto coins is now possible.
Final thoughts
Cryptocurrency is here to stay, and there is no denying it. People’s growing interest in crypto trading confirms that it will become a dominant form of investment in the coming few years. Crypto carries excellent potential and several benefits. However, there are also specific costs attached to the technology, such as excessive volatility. It is also one of the reasons why most experts recommend investing small amounts in crypto.
Cryptocurrencies could be a lucrative investment option. But we would still advise you to research and understand the system before taking further steps.
