Why Cryptocurrencies are a Good Choice
If we go to Coimnarketrate.com and if we look at the historical data, we will quickly come to the conclusion that cryptocurrencies are a great investment. If you had invested $1,000 in military-technical cooperation ten years ago, today you would have several tens of millions of dollars in your account.
The growth recorded for all cryptocurrencies could not remain unnoticed for a long time. Many investors realized the potential of the technology and noted the high return on initial investment. But cryptocurrencies as an investment should not be viewed solely through the prism of high profits, especially if you are a beginner who is just studying this area.
Investing in cryptocurrencies without any prior knowledge can only be a road to a quick loss of money.
Many cryptocurrencies are backed by projects that will define the financial world in the coming years. Also, with the further development of technologies, new projects and companies with revolutionary solutions will appear. One example of such projects is DecimalChain (DEL), which is the flagship of many innovative solutions in the Russian business space.
The advantage of the cryptocurrency market is precisely that with the development of technology, new teams and companies are born that improve the existing system. The rapid and stable growth of technology is one of the important indicators that it is not too late to invest in cryptocurrencies. That’s why we will give you the main reasons why cryptocurrencies are an attractive investment object for an investor.
Investing in cryptocurrencies has never been so easy
For several years now, investing has been an abstract concept for most people. It was generally believed that investing in stocks, real estate or other forms of ownership was difficult and intended only for people with large capital.
Let’s go back to the origins of Bitcoin. The process of buying a BTC was complicated enough to scare people away at the very first steps. Not to mention how slow computers were, and how hard it was to deal with the blockchain of digital wallets, etc.
Today you can buy stocks or cryptocurrencies in a few clicks through your smartphone. New technologies and the massive emergence of fintech startups offering revolutionary solutions give all users the opportunity to invest extra money that they can put aside and make a profit on it.
Instead of spending extra money on new clothes or other household items, people invest it in cryptocurrency as a form of savings. The buying process has become as simple as ordering pizza online. In just a few steps, a person can have a cryptocurrency in his portfolio at any time, and anywhere.
More importantly, everyone can find relevant information and various channels through which they can learn about blockchain technology and how cryptocurrencies work.
A few years ago, the cryptocurrency and blockchain industry was considered an “underground” scene. There were not enough opportunities to bring new technologies closer to people. If you want to learn more about investing in cryptocurrencies today, you have unlimited access to a selection of trusted sources. The industry has changed and progressed so much that it has become part of the programs of many schools and prestigious colleges.
Knowledge of cryptocurrencies and technologies in general will be of great help to anyone when he decides to invest in cryptocurrencies, and will help to immediately separate good crypto projects from bad ones.
- Where can I learn about cryptocurrencies?
Before you think about investing in cryptocurrencies, you need to understand how the blockchain technology on which cryptocurrencies are based works. You can find an unlimited amount of information on the Internet, but you need to filter the sources so as not to waste time on useless information.
It is recommended to choose sources of information that will explain the basics of blockchain and cryptocurrencies in simple language.
Many websites offer free courses. Crypto news portals and specialized blogs can also help you, as they will be aware of all the news related to the blockchain industry.
It is important to spend a lot of time studying innovations and projects in the field of blockchain, because this way you will be able to better distinguish good from bad projects in the future, and reduce the risk of potential fraud.
- Cryptocurrencies and blockchain are still in the early stages of development
One of the reasons why many people do not want to invest in cryptocurrencies is that they think they are late. The fact is that from 2017 to 2021, the whole industry was developing rapidly.
In addition to cryptocurrencies, DeFi and current NFT projects have appeared. During this period, many managed to get a good profit by investing wisely in cryptocurrencies. Many investors, especially those who are just going to become one, believe that they missed their chance by investing in cryptocurrencies.
Although the market has undergone a complete transformation and is moving towards equilibrium, it is still young. Bitcoin and cryptocurrency investing in general are still in their infancy. Every day there is a new project with solutions that seeks to solve the problems of previous blockchain projects. Each new solution provides an even simpler approach to the use and study of cryptocurrencies.
The emergence of new cryptocurrencies is also a good investment opportunity. If, as a user who knows this area well, you understand what the new project is trying to improve and what its long-term goal is, you can become one of the first investors. Over time, if the project really turns out to be successful, you will have the opportunity to get a good return on your initial investment.
It should be clarified that many projects that we know about today, and many projects that have not yet appeared, will not be implemented. Maybe because they don’t have a good product, or it doesn’t have a real use. That’s why education is important to better understand the ultimate goal of new cryptocurrencies, and to distinguish between good and bad projects. It is not worth investing in cryptocurrency, guided by the emotions or advice of another person.
Eventually, a large number of crypto projects will be successful. The reason is that they offer high-quality solutions that can improve the work of modern finance. An indicator that the development of cryptocurrencies is going in the right direction is that global financial institutions are already independently researching technologies and investing in cryptocurrencies.
A reliable tool for long-term value preservation
There are several strategies for investing in cryptocurrency. One of the most popular ways to invest in cryptocurrencies is long-term storage of cryptocurrencies to preserve value, better known in the crypto community as “HODL”.
The reason why people decide to invest using this particular strategy is that they do not want to participate in daily cryptocurrency trading. In fact, it all starts with their high volatility, as the price can change in one day. As soon as investors buy a cryptocurrency, they don’t sell it, even when there are big changes in the market.
Why, then, are cryptocurrencies considered a reliable means of preserving value
Digital assets, such as cryptocurrencies, are an attractive form of value preservation in the event of inflation or a crisis, such as the collapse of banks, as in the situation of the global financial crisis of 2008.
Unlike traditional fiat currencies, the number of cryptocurrencies in circulation is limited. For example, the total number of Bitcoins that may ever exist is 21 million. No one can influence the increase of a certain number of coins in circulation once. This ability of the cryptocurrency makes it resistant to inflation, unlike traditional currencies.
In addition, cryptocurrencies do not belong to banks and governments. If you once bought a cryptocurrency and saved it in your digital wallet, no one will be able to take it away from you.
Investments in cryptocurrencies bring higher returns than investments in stocks
The fact is that people are increasingly investing in cryptocurrencies in search of profit. Money rules this world, and therefore everyone is trying to find a way to make money, whether it’s investing in stocks or investing in cryptocurrencies.
What attracts investors to cryptocurrency the most is the high profitability. Many cryptocurrencies can achieve a jump of 20-40% in just one day, which is a return that one can only dream of.
However, the reason for the big jump is the high volatility of cryptocurrencies. As the cost can rise in one day, so it can fall.
As already mentioned, investing in cryptocurrency requires a lot of training and patience. Otherwise, you will be engaged in blind investments that can lead to financial losses.
Real financial freedom
Cryptocurrencies allow you to participate in trading at any time and for the amount that suits you. Investments in cryptocurrencies are intended not only for wealthy people.
People can invest in cryptocurrencies by setting aside a monthly amount that is not needed at the moment. This can also be seen as a form of savings, which, with an increase in the value of the cryptocurrency, can be turned into profit.
The best thing about investing in cryptocurrencies is that as an individual, you do not need the services of brokerage companies and other third parties, as in the case of investing in stocks.
Thanks to new adaptive solutions, you can buy cryptocurrency in a few clicks on any cryptocurrency exchange. Every transaction when buying or selling cryptocurrencies occurs instantly. In addition, there is an opportunity to trade cryptocurrencies at any time of the day or night, since blockchain networks work around the clock and seven days a week.
Every time a person invests money, whether it is a fund offered by a bank or shares, certain risks arise. The same is true with cryptocurrencies.
As already mentioned, cryptocurrencies are very volatile digital assets that are often unpredictable. Investing in cryptocurrencies based on some “hint” or “feeling” that the project you have learned about can bring a big price is a sure way to lose money.
Generally speaking, two things will be needed to start investing in cryptocurrency – knowledge, and well-established personal finances. In addition to knowing the basics of blockchain technology and cryptocurrencies, it is necessary to understand the basics of investing.
Although you’ve probably heard this many times, it’s important to remember to invest money that you’re willing to lose and that won’t have a significant impact on your quality of life.