October 6, 2022
Benefits of Investing in Cryptocurrency

Cryptocurrency is getting popular with each passing day as more people are turning to it for the safety of their wealth.

Since the introduction of Bitcoin (BTC) in 2009, cryptocurrency has come a long way and is now recognized by many global leaders as the best alternative to fiat.

Considering the recent downfall of fiat worldwide and the vulnerability it represents in times of uncertainties like war, cryptocurrency can not only be a haven for your wealth, but you can also make a lot of money with it. Here are some of the benefits that you can enjoy by investing in cryptocurrency.

What is Cryptocurrency?

Cryptocurrency is a digital currency that is based on blockchain technology. Its transactions are recorded on the public distributed ledger which is secured by cryptography.

Bitcoin has emerged as the largest cryptocurrency by market capitalization and dominates the crypto market. But there are hundreds of other cryptocurrencies circulating too known as altcoins.

Cryptocurrency works in a decentralized manner and provides freedom from bank or government regulations.

It has no physical presence and is stored online.

Carl Runefelt, alias, The Moon, is a global crypto leader who has invested in more than 350 crypto startups. Carl emphasizes, “Gold is much better than fiat, but even then, Bitcoin has a huge advantage. This is because gold has a supply that is increasing very slowly, but it is increasing. Bitcoin is finite, so there is a small advantage there. You can transfer Bitcoin with a click of a button. But if I have to send a million dollars to gold to another country, it’ll cost me maybe more than the gold itself – the bigger the number, the harder to send.”

Benefits of Investing in Cryptocurrency

Cryptocurrency is supported by many global leaders as the solution to an already disorganized financial system. Here are some of the most significant benefits of investing in cryptocurrency.

Quick Transactions

Sending money to anyone around the world has become much easier with cryptocurrency.

You can send or receive cryptocurrency at any time as it is available 24/7. In addition to this, the fees for cryptocurrency transactions are lower compared to fiat transactions. With a simple smartphone app, you can send or receive various cryptocurrencies.

Remarkable Security

Cryptocurrency offers incredible security to your wealth.

Based on cryptography and blockchain security, the risks of scams are minimal in cryptocurrency.

The security of cryptocurrency is based on the hash rate. The higher the hash rate is, the more secure is the cryptocurrency. Bitcoin has the highest hash rate among cryptocurrencies which makes it the most secure cryptocurrency.

Protection from Inflation

Inflation is a challenge to financial stability across the globe.

Higher inflation results in the devaluation of a currency making it difficult for people to survive.

Cryptocurrency, on the other hand, is designed to provide a hedge against inflation.

For example, the protocols of Bitcoin are designed in a way to limit its supply. Only a fixed number of BTC can be traded to control inflation. Carl on his YouTube channel, The Moon, says, “Bitcoin is the best hedge against inflation that we have in the world right now, and Bitcoin is also the best form of money that we have and have maybe ever seen in the history of humans.”

Decentralized Nature

One of the biggest benefits of investing in cryptocurrency is to enjoy the freedom from any bank or government involvement in your wealth.

Cryptocurrency works in a decentralized way which means that it is not controlled by a bank or government.

Fiat or traditional currency, on the other hand, is regulated around the world and works under the influence of a central authority.

Exponential Growth

Cryptocurrency was unknown to many when it first appeared on the global stage.

Since then, it has withstood the test of time and experienced exponential growth. For example, the current total market capitalization of cryptocurrency is above US $1 trillion (as of July 2022) which was about the US $1.6 billion in 2013

Outsized Returns

The most remarkable benefit of cryptocurrency is that you can make a lot of money with it.

Cryptocurrency is not only just a currency but also works like an asset which you can invest to make money. People around the globe have become millionaires or even billionaires by investing in Bitcoin.

Conclusion

Cryptocurrency offers a smooth transaction from fiat to digital currencies.

The above-mentioned are a few of the most significant advantages that you can enjoy by investing in cryptocurrency.

As things are working in the financial system, it is in your hands whether you want to enjoy such benefits by buying cryptocurrency or not.

Read also : How Do You Calculate Your Cryptocurrency Portfolio’s Gains and Losses?

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