Technology has transformed the way people communicate, work, shop, and pay. More and more consumers and companies prefer digital, cashless payment methods like credit and debit cards, American Express, Discover, and PayPal. The ubiquity of the internet and smartphones has paved the way for a major digital transformation. Now, a nascent digital payment system is emerging: blockchain-based cryptocurrencies.
The blockchain technology aims to provide decentralized, secured, transparent, reliable, and fast transactions. It shuns the centralized method of recording transactions, usually run by governments and central banks. Meanwhile, cryptocurrency is a virtual or digital medium of exchange that uses cryptography to conduct financial transactions. It is based on specific blockchain technology.
Since the inception of Bitcoin in early 2009, cryptocurrencies have been the buzzword in the fintech world. Its spectacular run in 2013, wherein Bitcoin was worth almost as much as gold, has put blockchain and digital coins in the spotlight.
The popularity of Bitcoin and cryptos has led to major technological developments. Virtual currency exchange methods have emerged and evolved rapidly over the past few years. According to developers of Stokr, an online investment platform, these platforms have made investing in digital assets more accessible to every type of investor. These platforms allow you to invest in leading crypto coins as well as new blockchain technologies that are still in development.
The wide popularity and acceptance of digital currencies are also expected to drive the crypto market in the forthcoming years which makes it a wise investment tool. However, given the volatility of cryptocurrencies, many are still wary about it.
Here we take a look at the top seven reasons why it is wise to invest in blockchain now.
Improved regulations of the crypto market
The unprecedented rise in digital currencies has necessitated better regulation – and it is beginning to take shape now. This has reduced uncertainty, improved trading activity, and controlled coin prices.
Improved regulation is also crucial in thwarting crypto scams by requiring all new investment opportunities to meet certain requirements. This development has made digital assets a more credible investment tool and strengthened the foundation for the crypto market.
Increased adoption of blockchain technology
Although Bitcoin receives much attention, there are a plethora of virtual currencies in the market that you can invest in. These cryptocurrencies are all backed by innovative teams with promising blockchain-based solutions.
Over recent years, we’ve seen industries and sectors adopt blockchain technologies in their processes. Major tech companies are investing significant resources and funds into the blockchain. This only shows that blockchain will inevitably become a vital part of the way we do business in the future.
Simplified investment process
Back in the days, investing in Bitcoin was a daunting one. There are practically limited information and investment methods. Fortunately, crypto wallets and exchanges have simplified investing in digital assets. For example, Coinbase allows you to purchase Bitcoin, Ethereum, Litecoin, and other crypto coins.
There are also crypto exchanges that enable you to invest in a portfolio of cryptocurrencies thereby reducing risks. Some platforms allow investments to ICOs, angel investments, and other blockchain-related innovations. These crypto exchanges offer better security, which addresses one of the early problems of virtual currencies.
The emergence of promising alt-coins
Those who have invested early on Bitcoin have already earned eye-watering returns. If you are looking for the largest rewards, you need to expand your horizon and consider “alternative coins” or “alt-coins,” such as Litecoin and Ethereum. When you start investing in blockchain now (through alt-coins), you can get these coins while their prices are still low.
These emerging and promising cryptocurrencies are expected to prosper and reap excellent ROI to investors. However, it should be noted that this type of speculative investment is extremely risky. You need to have an appetite for risks before putting your bet on this.
Opportunity to get amazing deals
Weak hands abound the crypto market and you can seize this opportunity. When the crypto market rallied, many investors joined the bandwagon with little research. The subsequent slump, correction, and stabilization have left them in limbo.
Investors holding considerable investments are just waiting for an opportunity to dump their assets. Anytime, they are ready to exit and sell-off. Hopefully, you can get these amazing deals and hit jackpot.
Institutional investors are adapting it
Blockchain-backed cryptocurrencies were once a fringe asset that no one understood. But now, some of the major investors and hedge funds are putting their money on digital assets.
Well-known and established hedge fund managers are now acquiring Bitcoin and other cryptocurrencies to diversify their portfolios. This only shows the increased trust of institutional investors put on the virtual coin market.
Blockchain’s promising future
When looking at the short-term price movement of cryptocurrencies, you might feel discouraged and even think that you made a wrong investment decision. Some are afraid to enter the crypto market because of its volatility and unpredictable price movement.
But if you focus on the technology behind it, you’ll know that cryptocurrencies are a good investment. Blockchain is increasingly adopted in various industries. Major companies are pouring in their resources to it. If you invest in blockchain now, you should expect returns in 5 or 10 years – around this time, the technology would have been fully ripe.
Final Thoughts
Whether you are a big-time investor looking to diversify your portfolio or just want to invest enough cash, now is a great time to invest in the crypto market.
Although there are still a lot of uncertainties and worries about the market, staying outside the fence would leave you behind. If you are still unsure about this investment move, there are plenty of resources available now. Blockchain technology is set to change the way the world works in the future – and investing in it early is the wisest thing you can do.
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