6 Benefits of Investing in Cryptocurrencies

The birth of bitcoin in 2009 opened the doors to investment opportunities in a completely new type of asset class – cryptocurrency. Many have entered the space before.

Intrigued by the immense potential of these rare but promising assets, they bought crypto at cheap prices. Consequently, the 2017 bull run saw them become millionaires/billionaires. Even those who didn’t share much reaped decent profits.

Three years later, cryptocurrencies are still profitable, and the market is here to stay. You may already be an investor/trader or perhaps contemplating trying your luck. In both cases, it makes sense to know the benefits of investing in cryptocurrencies.

Cryptocurrency has a bright future

According to a report titled Imagine 2030, published by Deutsche Bank, credit and debit cards will become obsolete. Smartphones and other electronic devices will replace them.

Cryptocurrencies will no longer be seen as marginalized but alternatives to existing monetary systems. Its benefits, such as security, speed, minimal transaction fees, ease of storage, and relevance in the digital age, will be recognized.

Concrete regulatory guidelines will popularize cryptocurrencies, and promote their adoption. The report predicts that there will be 200 million users of cryptocurrency wallets by 2030, and almost 350 million by the year 2035.

Opportunity to be part of a growing Community

#IndiaWantsCrypto by WazirX campaign recently completed 600 days. It has become a massive movement supporting the adoption of cryptocurrencies and blockchain in India.

Additionally, the recent Supreme Court ruling overturning RBI’s crypto banking ban from 2018 has instilled a new rush of confidence among Indian bitcoin and cryptocurrency investors.

The Edelman Trust Barometer 2020 report also points to people’s growing faith in cryptocurrencies and blockchain technology. According to the findings, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency/blockchain will be positive.

By being a cryptocurrency investor, you stand to be a part of a thriving and fast-growing community.

Increased profit potential

Diversification is an essential investment rule. In particular, in these times when the majority of assets have suffered heavy losses due to economic difficulties stimulated by the COVID-19 pandemic.

While investing in bitcoin has given 26% returns since the beginning of the year to date, gold has returned 16%. Many other cryptocurrencies have recorded triple-digit ROIs. The stock markets, as we all know, have posted dismal performances. Crude oil prices notoriously fell below 0 in the month of April.

Including bitcoin or any other cryptocurrencies in your portfolio protects the value of your fund in such uncertain situations of the global market. This fact was also impressed by the billionaire macro hedge fund manager Paul Tudor Jones when a month later he announced plans to invest in Bitcoin.

Cryptocurrency Markets are on 24X7X365

In contrast to the usual markets, cryptocurrency markets operate around the clock, every day of the year without fatigue. That’s because digital currency systems are essentially designed with pieces of software code that are secured by cryptography.

The operational plan does not involve human interference. Therefore, you are free to trade crypto or invest in digital assets whenever you want. It’s a great benefit! Cryptocurrency markets are very efficient in this way.

For example, Bitcoin has successfully processed transactions with 99.98% uptime since its inception in 2009.

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No paperwork or formalities required

You can invest in bitcoin or any other cryptocurrency anywhere and anytime without unnecessary terms and conditions.

Unlike conventional investment options, where an absurdly high amount of documentation is required to prove yourself as an “accredited investor”, crypto investing is free for all. In fact, this was the intended purpose behind the inception of cryptocurrencies. The democratization of finance/money.

To buy any cryptocurrency WazirX, you need to open an account for which you only need to provide some basic details including your bank account information. Once they are verified, within a few hours, you are good to go.

Sole Proprietorship in Investments

When you buy bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction happens in a peer-to-peer agreement.

Unlike bonds, mutual funds, brokers, no third party “manages your investment” for you. Call the buy and sell shots whenever you want.

User autonomy is the biggest benefit of cryptocurrency systems that provide incredible opportunities to invest and build a corpus on your “independent” main capital.

Here are some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to start your crypto investment journey.