5 Reasons to Invest in Cryptocurrency
August 29, 2022 (Investorideas.com Newswire) Cryptocurrency is an excellent investment, especially if you want direct exposure to the digital currency's demand. While investing in cryptocurrency can be risky, it's quite lucrative. However, having an investment thesis for every cryptocurrency you invest in is vital because it shows you why the currency is likely to succeed. Researching and learning a lot about how to invest in cryptocurrency can help you manage the associated investment risk. This article outlines five reasons to invest in cryptocurrency.
1. The cryptocurrency market is constantly growing
The global cryptocurrency market had a major growth of 10% in 2020, compared to the year-on-year increase from 2017 to 2019. The market is expected to grow from $910.3 million USD to $1,902.5 million USD in 2028, at a compound annual growth rate (CAGR) of 11.1% from 2021 to 2028.
The crypto market has experienced tremendous growth, making it an excellent investment option. There's even a plan to create an island that will only use bitcoin. Before investing, research to learn how to trade cryptocurrency to reduce investment risk. You can visit Investor Junkie or any other for accurate, up-to-date information.
2. Diversify your investment portfolio
Cryptocurrency is an excellent way to diversify your portfolio and reduce risk. It lets you transact without requiring a central intermediary such as a bank. Investing in various virtual assets helps safeguard your investment from price corrections impacting individual tokens or coins. You can diversify your portfolio by assigning money toward different coin types.
You can diversify your crypto portfolio by considering the various coins' success. Peer-to-peer (P2P) transactions, smart contract coins, and stablecoins are a good way to spread your investment risk. You may also spread your investment risk by geography or exchange-traded fund (ETF). With the multiple assets constituting your portfolio, crypto diversification can help mitigate the risk that comes with the inevitable price changes of the coins.
3. Cryptocurrency is a long-term store of value
While coins like bitcoins and other digital class assets are volatile and risky, they're an unparalleled store of value and investment tool. These coins are a great store of value due to their underlying value, scarcity, interchangeability, portability, and security. Inflation is a significant cause for worry because it can put a severe dent into your savings' value, even when you've tucked them into a fixed account. The cryptocurrency's ability to store value gives you a hedge against inflation.
4. Get complete control over your investment
Cryptocurrencies have a decentralized structure, meaning they exist outside central authorities and governments' control. This means federal agencies and governments can't manipulate their value because they have no control over them. Only you, the crypto holder, can access your investment using a private key which gives you complete control over your investment. However, should any government decide, they can effectively outlaw cryptocurrency just like China did. However, free-market economies have chosen not to.
5. Cryptocurrencies are easily accessible
Anybody can invest in cryptocurrency, provided they have a smartphone or computer and a strong internet connection. Setting up a cryptocurrency wallet is quicker than creating an account in a traditional banking or financial institution. You don't need a credit or background check or ID verification. Cryptocurrency allows you to access financial services minus going through centralized authorities.
Digital assets enable you to diversify your portfolio while giving you an inflation hedge. Consider investing in cryptocurrency to enjoy these benefits.
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