The birth of bitcoin in 2009 opened the door to investment opportunities in an entirely new type of asset class – cryptocurrency. Many entered space early.
Intrigued by the huge potential of these fledgling but promising assets, they bought cryptos at bargain prices. As a result, they became millionaires / millionaires in the bull run of 2017. Even those who didn’t have much made decent returns.
Three years later cryptocurrencies are still profitable, and the market is here to stay. You may already be an investor/trader or thinking of 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 called Imagine 2030 published by Deutsche Bank, credit and debit cards will become obsolete. They will be replaced by smartphones and other electronic devices.
Cryptocurrencies will no longer be seen as outcasts, but as an alternative to existing monetary systems. Their benefits such as security, speed, minimal transaction fees, ease of storage and their importance in the digital age will be recognised.
Clear regulatory guidelines would popularize cryptocurrencies and encourage their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030, and nearly 350 million by 2035.
An opportunity to be part of a growing community
#IndiaWantsCrypto by WazirX 600 days campaign just finished. It has become a massive movement to support cryptocurrencies and blockchain in India.
Also, the recent Supreme Court ruling overturning the RBI’s ban on crypto banking from 2018 has sparked a new confidence among bitcoin and cryptocurrency investors in India.
The 2020 Edelman Trust Barometer Report also highlights people’s increased faith in cryptocurrency and blockchain technology. According to the findings, 73% of Indians trust cryptocurrency and blockchain technology. 60% say the impact of cryptocurrency/blockchain will be positive.
As a cryptocurrency investor, you will be part of a growing and thriving community.
Increase your earning potential
Diversification is a fundamental rule of investing. Especially in these times when most assets have suffered heavy losses due to economic difficulties driven by the COVID-19 pandemic.
While Bitcoin investment has returned 26% year-to-date, gold has returned 16%. Many other cryptocurrencies have recorded triple-digit ROIs. We all know that stock markets have had bad returns. Crude oil prices fell below 0 in April.
Including bitcoin or any other cryptocurrency in your portfolio would protect the value of your fund in the uncertain conditions of the global market. This fact was also surprised by billionaire macro hedge fund manager Paul Tudor Jones when he announced his intention to invest in Bitcoin a month back.
Cryptocurrency markets are available 24X7X365
Unlike traditional markets, cryptocurrency markets operate around the clock, every day of the year without fatigue. That’s because digital currency systems are fundamentally designed using pieces of software code that are cryptographically protected.
The operational plan does not involve human intervention. So you are free to trade crypto or invest in digital assets whenever you want. That’s a huge benefit! Cryptocurrency markets are very efficient in this way.
For example, Bitcoin has successfully processed transactions with a 99.98% uptime since its inception in 2009.
No paperwork or formalities required
You can invest in Bitcoin or any other cryptocurrency anywhere and anytime without unnecessary terms and conditions.
Unlike traditional investment opportunities, where an incredibly large amount of documentation is required to prove yourself as an “accredited investor”, crypto investing is free for everyone. In fact, that was the intended purpose behind the creation of cryptocurrency. Democratization of finance/money.
To buy any cryptocurrency WazirX, you need to open an account for which you need to provide some basic details including your bank account information. Once verified, within a few hours, you’re good to go.
Sole ownership of investments
When you buy Bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction takes place in a peer-to-peer arrangement.
Unlike bonds, mutual funds, stock brokers, third parties do not “manage your investment” for you. You call it buying and selling whenever you want.
User autonomy is the greatest benefit of cryptocurrency systems, which offer incredible opportunities to invest “independently” in your main capital and build a corpus.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to start your crypto investment journey.