Top 10 reasons to invest in CryptoCurrencies
1- Diversify portfolio
The rationale for including Bitcoin and other cryptocurrencies in traditional investment portfolios, is the same that justifies the inclusion of alternative investments: portfolio diversification and increased returns.
Bitcoin can be classified as an alternative investment, according to Fidelity Digital Assets. Source: CNL Securities.
In other words, if monetary policies affect the returns of traditional assets, Bitcoin will become more attractive as an investment.
2- Security and transparency
The blockchain technology used by cryptocurrencies offers transparency (all participants can see all the information contained in the distributed database), and decentralization (the same copy of the database in all nodes), irreversibility (once a data is registered, it cannot be modified or deleted) and disintermediation (without a central referee, the participants make decisions by consensus). The chain of blocks links the sequence of transactions and incorporates a time stamp that gives transparency and traceability to the operations without violating the privacy of the users.
The blockchain uses cryptographic security mechanisms to access, sign and encrypt transactions, blocks and their chaining. The private keys can be linked to the identity of the users or to intermediate elements; for example, digital wallets with which the platform offers the anonymity of operations. The rules that execute the transactions can be established through smart contracts; in the Ethereum blockchain, for example, they ensure a common understanding of the transaction between the parties, about the obligations contracted, offering limited evidential visibility to the interested parties (third parties of the blockchain outside the contract do not have access to its stipulations or its fulfillment).
3- High liquidity
Liquidity is understood as the level of quick purchase or sale of an asset. (Including investments in crypto world assets).
An asset with high liquidity is one that can be easily traded in all markets in the world with stable prices. In contrast, assets with little liquidity are not usually traded on large exchanges. Therefore, the easier it is to convert an asset into cash, the easier it will be to sell and buy it.
With cryptocurrency and cryptocurrency credit and debit cards, your investment will have high liquidity. This means that it will be easy for you to buy and sell cryptos quickly.
4- Cryptos are here to stay
The certainty and stability in the provision of Bitcoin is one of the most significant reasons why this cryptocurrency has become one of the most popular among investors and economists. The issuance of Bitcoins is even rarer than that of gold, therefore making it a perfect tool for storing value.
The growing investment interest of institutions and corporations in Bitcoin continues, new possibilities of use could possibly be explored, not only for this cryptocoin but more, and a very important step would be taken in the evolution of this new financial ecosystem that has much more potential than a speculative instrument. If at some point this situation occurs, then we will be facing an unprecedented economic change.
We must also bear in mind that last year Decentralized Finance (DeFi) had an extraordinary irruption. This ecosystem went from having about $ 700M of value attributed in its protocols to more than $ 15,000M in just 1 year. And in that same period of time, its mass of users increased by about 1 million.
5- Remove the worry of inflation
From an investor’s perspective, Bitcoin and certain cryptocurrencies are quite “resistant” to the artificial depreciation of money. Despite the fluctuations in their value, which is normal for a completely new type of product, Bitcoin has great advantages over a well-built portfolio.
Inflation, if well managed, doesn´t have to be a bad thing. But sadly, there are still many governments struggling to find the right balance.
On the other hand, citizens have quite a few options to protect themselves against this, through stocks, precious metals, or other investments. Generally speaking, these tend to retain their value even when the value of the fiat currency falls. So, investors just have to wait for the value of that currency to stabilize or they transfer the wealth to another currency if necessary.
This is where the potential of cryptocurrencies can shine. While crypto assets are all different, any currency (like Bitcoin) that has a fixed number of units can only be deflationary. This happens because there are only 21 million BTC to mined. This turns Bitcoin into a supply designed to increase in value over time, as it becomes increasingly scarce.
6- Investing in crypto is safer than other investments
Today in 2021, we no longer question whether bitcoin and other cryptocurrencies will ever catch on in society or not. Many companies already accept it as a means of payment, including large companies such as Microsoft and Paypal. On the other hand, thousands of related products are coming out to buy, sell, store, and trade them.
The question of whether people will ever choose it as a means of payment has already been answered. Now, it is just a matter of waiting for the bright future behind cryptocurrencies.
7- The bright future of cryptocurrency
People will learn that Bitcoin and other cryptocurrencies is where they want to have their long-term savings.
8- It´s not too late to start investing
Investing in Bitcoin nowadays puts you in the position of being an early investor. You might no be a pioneer and you might have missed out on 20,000x returns but Bitcoin will continue to grow in the future since only 12 years have passed since the first bitcoin was mined.
As more and more people, governments and large corporation adopt the use of Bitcoin, their value will continue to rise.
9- Blockchain will change the world
People all over the world are looking for new solutions that allow them to be more efficient in their daily lives. Additionally, they look for new alternatives to eliminate intermediaries in the process. Intermediaries generate delays, are inefficient and create and added monetary value per transaction.
With blockchain, not only financial transactions are possible, but operations where information is stored, because they allow greater control and security.
The interesting thing about new technologies is that possibilities have no limit. When the Internet began, email systems, web pages, instant messaging systems and applications were born; The same will happen with blockchain, we are at the beginning of its development, but in a few years, it will be the best option to facilitate most of the processes that we are used to today.
10- Limitless variety of crypto coins
Although Bitcoin was the first digital currency, more cryptocurrencies are emerging every day and therefore more and more platforms are emerging to allow this market to operate easily.
As mentioned before, there are countless cryptocurrencies, and these are some of them:
- Ether, the cryptocurrency of the Ethereum network, its philosophy is to want to be the largest computer in the world where you can create applications. This cryptocurrency is one of the best alternatives to Bitcoin.
- Lumens XLM managed through Stellar is considered the successor to bitcoin in terms of payments. Exchanges are made quickly, publicly and in real time. Widely used in financial payment network.
- Dash, which was previously called Darkcoin, is one of the most used cryptocurrencies in Latin America. Due to its security system, it is considered one of the safest cryptocurrencies.
- Litecoin is inspired by Bitcoin, although it was created as an alternative to this cryptocurrency, proclaiming itself the silver of the Blockchain, with Bitcoin being gold.
Reasons to invest in crypto
• You can diversify your portfolio.
• Crypto uses Blockchain technology
• it is highly likely that your investment will grow in the future
• However, High volatility present risks
• Now, it’s not late to start investing