In the current economy, the fastest way to increase wealth is through financial investment. In financial investment, there are many different channels. But cryptocurrencies are one of the assets that have the strongest growth potential.
However, this often requires participants to do detailed research about the market and a significant investment of time, which is often intricate and tough especially for beginners. That’s why we are here. In this article, we’ll provide a clear explanation of cryptocurrency and how to earn interest on crypto. Without further ado, let’s dive in.
What Is Cryptocurrency?
A cryptocurrency is a form of digital currency that can act as a medium of exchange and store value. Most current cryptocurrencies use blockchain technology to operate. Cryptocurrencies are completely decentralized and have no central controlling authority. Therefore cryptocurrencies follow the rules of supply and demand in the market.
In terms of technology, cryptocurrency is encrypted and highly secure. At the same time, it is not controlled by a government agency. Cryptocurrency transactions have only two parties involved. Transaction information is completely confidential and cannot be hacked.
Why Should People Invest In Cryptocurrency?
One of the problems people are hearing about investing in crypto is that they are either “too late” or they “miss the boat”. The number of Bitcoins is capped at 21 million. And the Bitcoin price has now surpassed the $40,000 figure. As mentioned above, now the money supply is increasing strongly. Manufacturing operations have been halted by the pandemic. Therefore, strong capital is pouring into this market.
Cryptocurrencies have a long way to go. After the policy wave, it is the intrinsic value of the cryptocurrency that will help it shine.
The Bright Future For Investment
The overall future of cryptocurrencies is even brighter. That alone is one reason why investing in 2021 would be a smart idea. Bitcoin can be used as a good example. It has gone down in history with its ups and downs. However, it still survives through thriving in the present time.
A series of large institutions such as MicroStrategy, Grayscale is continuously buying Bitcoin reserves. Leading experts have assessed that the future of this industry is extremely promising, so they have taken such actions.
The Crypto Bubble Has Burst
In Q4 2017, many considered the exponential growth in the value of Bitcoin and other altcoins to be unsustainable. However, if you want to take two steps forward, you have to take one step back. During the bear market period, that was when Bitcoin accumulated to make the current leap.
But Market Maker is solid, many traders have solid experience. Major financial institutions are in the game. Those are the factors that make this wave of Bitcoin more than just a bubble.
Blockchain Is The Core Technology
The core of cryptocurrencies is technology. And the potential of Blockchain is immense. All these sectors can be revolutionized by applying Blockchain. From travel, real estate to games. Great features such as security, transparency, safety, etc. have made Blockchain the key to future success.
As Blockchain is increasingly used, there is no reason why cryptocurrencies using this technology should not benefit. It depends on each person’s trading style. But with this core technology Bitcoin deserves a place in investors’ portfolios.
Footprints Of Giants
One of the biggest problems with the Q4 2017 bull run is that you can invest in any coin. No matter what use it has, it still makes money. Leading to investors without background knowledge. Just buy it and it will automatically come up. People are so used to things that add up every day. So they will panic if the market is red. Their action will be to sell-off. Leads to a market crash. But that’s the story of 2017.
Now, the weak investors are probably out of the game. At the same time, those who stayed have learned their lesson about when to sell and when to hold. The aforementioned large organizations have appeared publicly. Along with that are the giant whales supporting the market. Those factors give you more reasons to invest right away. Standing on the shoulders of giants is not a bad position, is it?
Going back in time, if you wanted to buy Bitcoin in 2010 you would most likely give up. First, computers at that time were still slow, there were not many supporting platforms. Second, wallets are hard to find and insecure. Buying is hard, keeping is even harder.
Investing in Bitcoin and other cryptocurrencies is now as easy as ordering a book from Tiki. Currently, many units have accepted cryptocurrency transactions. The exchanges are extremely rich. Just a few mouse clicks or swipes of your finger. You can own Bitcoin.
Safe And Secure Transactions
Cryptocurrency exchanges have had problems in the past. Those who remember Mt. Gox. It one of the worst cryptos crashes in history. In 2014, Mt. Gox is a Japanese exchange that processed over 70% of all BTC transactions when it was hacked. It owns more than 6% of Bitcoin in circulation with a total value of more than $350 million at the time.
Many believed that would be the end of cryptocurrencies. Of course not. Today, security technology has become much more modern. There are many reputable places to help you do this. Just a few simple steps, you will immediately own the desired coins. It comes with a high level of security in a crypto wallet.
Cashless remittance can now be used completely using cryptocurrency, which only takes a few minutes and costs a fraction of the fee when using a bank. Cryptocurrency records can also be verified and traced by regulators and auditors, resolving a key problem that has plagued the banking sector. This alone has a tremendous influence on encouraging financial inclusion for the world’s neglected and underbanked populations.
Cryptocurrency Is Becoming Legal
As of February 2020, Bitcoin is legal in the United States, Japan, the United Kingdom, and many other countries. In emerging markets, the legal situation of Bitcoin is still very different. For example, China has restricted the development of Bitcoin and the market for Bitcoin. India bans banks and financial institutions from trading Bitcoin.
All in all, it is necessary to consider the state of Bitcoin in each specific country. But overall, with the evolution of the financial system, the possibility of crypto being a legally official means of payment is strong.
The cryptocurrency trading sector is characterized by high liquidity, which implies that it is simple to purchase and sell cryptos. Crypto trading today is highly accessible. Not only are individual investors but also large corporations eager to acquire and trade crypto.
In 2021, there are certainly many ways you can increase your wealth. Cryptocurrency investing is one of the shortest paths to profit optimization.
Through the above article, we showed reasons why people should invest in crypto and advised beginner investors. We hope that the above knowledge can help you tremendously in your future investment.
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