Crypto Advantages for Investors
It’s hard to believe that it was only in 2009 that Bitcoin was first created. It took a few years before it gained mainstream traction, but now it’s solid to look anywhere without seeing another article, website, or news story about cryptocurrency.
Many of the people involved in cryptocurrencies are looking for a rich quick option, but there are distinct advantages for genuine investors. Here are a few of the reasons you might want to add some coins to your portfolio.
It Doesn’t Get More Secure Than Blockchain
Even if you are careful in a traditional investment environment, there’s always a small risk that information may be altered after you’ve handed over your investment. Blockchain, the technology that cryptocurrencies are built on, cannot be modified once a transaction is recorded. This means there is no chance of anything shady happening to your money once you’ve invested it.
Cryptocurrency Trading and De-Fi Platforms Are Accessible 24 Hours a Day
When you invest in conventional markets, you’re restricted to their hours of operation. When the trading floor closes, you have to wait until it opens again before you can buy, sell or trade. That can lead to a few tense hours when things are going bad.
Cryptocurrencies are not traditional stocks or bonds, though, and neither are the platforms that trade them. Your portfolio, your crypto, your investments are almost accessible 7/24, from anywhere in the world! You can access crypto trading options at any time of the day or night, so you’re never left waiting to make changes to your portfolio. You have the freedom to choose, rather than restrictions, trade-stops, pauses, national holidays.
Perhaps the biggest drawcard for crypto investment is that there is nothing that can match it for growth. There are countless stories of people who have become millionaires in a concise amount of time, with a relatively small investment. There are no stocks, bonds or funds that come even remotely close to the returns you can get. On the other hand, these opportunities come with scams and misfortunes.
Some investors like the idea of trading coins anonymously. It is nice to know that no one will know who you are, which could be a significant security benefit.
Because everything is tied to your crypto wallet and cannot be accessed without your private keys, there is no need to use your name or any other personal identification when you buy and sell crypto. This also comes alters the way that KYC/AML policies apply. In traditional trade markets, there are huge policies, frameworks and paperwork.
It is got a little easier to buy and sell stocks and bonds, thanks to the internet. But you still need to create an account, and you might need a broker or a fund manager, even if you use them.
Cryptocurrency, however, is accessible to everyone. You don’t have to be a trader, a fund manager, or a broker. However, you have to know the fundamentals of wallet and exchange security not to get bumped! You just need to create an account and start buying and selling.
No Big Banks Involved
We used to think that big banks were solid, dependable, and would be around forever. But as most people remember, even big banks can suffer catastrophic losses when the global economy takes a tumble. If you remember Lehman Brothers, you’ll know exactly what we’re talking about.
With %100 secure P2P and decentralized design structure, cryptocurrencies bypass big banks and most traditional financial institutions in general. So, there’s no risk that you’ll be affected if there’s ever another sudden and cataclysmic economic downturn.
No Sign of Slowing
Crypto may have taken some time to find its footing. As little as ten years ago, no serious investor would even have considered it. But things have changed. Everyone from high profile billionaire business people to savvy homemakers is backing on crypto these days.
There’s no sign of this slowing down any time soon either. If anything, there are more coin options, more ways to buy, sell and trade, and more investors than ever before. There’s a lot more information too, so it’s easier to make informed decisions if you want to dip a toe into the crypto pool.
Not Tied to Inflation
Traditional banks, stocks and investment instruments are all tethered to all kinds of economic factors, including inflation. Interest rates, inflation or other critical financial indicators blink, and your investments can gain or lose big quickly.
Cryptocurrencies are very far removed from those traditional economic factors. In other words, they won’t have seismic shifts when governmental macroeconomic conditions change. They’re also not tied to any particular geography, so even if things change dramatically in the country you live in, crypto markets are unlikely to experience a ripple.
Facilitate International Trade
There hasn’t been widespread adoption of crypto as a financial tool for international trade — yet. However, since cryptocurrencies are not tied to traditional exchange rates or transaction charges, there is growing interest in this possibility.
If your financial portfolio includes any kind of international trade, it’s a good idea to get into cryptocurrency so that you can take advantage of these benefits earlier. On the other hand, it is always good to remember that cryptocurrencies are tagged as high-risk assets though you have to know what you do before buying, selling and trading.
Lots of Options
You’ve probably heard of Bitcoin, Tron and Ethereum, but they are far from the only options out there. In fact, at last count, there were over thousands of different cryptocurrencies in the world. Some are smaller, newer, and less trusted, but many are viable without being a household name. You’re not forced to choose between limited options.
Cryptocurrencies are, of course, a newer option for investors. They’ve only been around a little over a decade, and some are still finding their feet. But those that have established themselves as market leaders have already made early investors very wealthy people and promise to do the same for many more.
The investment rules around crypto aren’t that different to traditional markets either. Do your research, know what you’re buying, and focus on the projects rather than the prices. Don’t put all your financial eggs in one basket, and remember that everything fluctuates. You don’t have to panic for every ripple.
But there is no sign that cryptocurrencies are going anywhere anytime soon. As more people embrace the technology and ethos of this new millennium financial tool, there’s a good chance we will see even more mainstream adoption.
So don’t be surprised if one day soon, you can buy a home, car or even groceries with your coin.