The birth of bitcoin in 2009 opened the doors to investment opportunities in an entirely new type of asset: cryptocurrency. Many entered space very early.
Intrigued by the immense potential of these fledgling but promising assets, they bought cryptos at cheap prices. Consequently, the bull run of 2017 saw them become millionaires/billionaires. Even those who didn’t bet much made decent profits.
Three years later, cryptocurrencies are still profitable and the market is here to stay. You may already be an investor/trader or you may be 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 as alternatives to existing monetary systems. Its advantages such as security, speed, minimal transaction fees, ease of storage and relevance in the digital age will be recognised.
Concrete regulatory guidelines will popularize cryptocurrencies and boost their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030 and nearly 350 million by 2035.
Opportunity to be part of a growing community
#IndiaWantsCrypto by WazirX recently ended campaign for 600 days. It has become a massive movement supporting the adoption of cryptocurrencies and blockchain in India.
Additionally, the recent Supreme Court ruling that overturned RBI’s ban on crypto banking since 2018 has instilled a new crisis of confidence among Indian bitcoin and cryptocurrency investors.
The 2020 Edelman Trust Barometer 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 are part of a thriving and fast-growing community.
Increased profit potential
Diversification is an essential rule of investing. Especially, during these times when most assets have suffered huge losses due to the economic difficulties caused by the COVID-19 pandemic.
While investing in bitcoin has returned 26% year-to-date, gold has returned 16%. Many other cryptocurrencies have recorded triple digit ROI. Stock markets, as we all know, have had an unfortunate performance. Crude oil prices fell sharply below 0 in April.
Including bitcoin or any other cryptocurrency in your portfolio would protect the value of your fund in such uncertain global market situations. This fact was also impressed by billionaire macro hedge fund manager Paul Tudor Jones when he announced plans to invest in Bitcoin a month ago.
Cryptocurrency markets are running 24X7X365
Unlike regular markets, cryptocurrency markets work around the clock, every day of the year without fatigue. This is because digital currency systems are basically designed using pieces of software code protected by cryptography.
The operational plan does not involve human interference. So you are free to trade crypto or invest in digital assets whenever you want. This is a great benefit! Cryptocurrency markets are very efficient in this way.
For example, Bitcoin has successfully processed transactions with an uptime of 99.98% since its inception in 2009.
No formality or paperwork required
You can invest in bitcoins or any other cryptocurrency anywhere and anytime without any 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 goal behind the creation of cryptocurrencies. The democratization of finance/money.
To buy any cryptocurrency WazirX, you must open an account for which you only need to provide some basic information, such as your bank account information. Once verified, in a few hours, you’re good to go.
Unique investment property
When you buy bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction occurs in a peer-to-peer agreement.
Unlike bonds, mutual funds, stock brokers, no third party “manages your investment” for you. Call to buy and sell, whenever you want.
User autonomy is the biggest benefit of cryptocurrency systems that offers incredible opportunities to invest and build a corpus in your main capital “independently”.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and compelling enough to start your crypto investment journey.