Investing in cryptocurrencies in 2022 is a great choice to make, this is because investing in itself is a healthy means of staying ahead of the financial crises.
Before I give you my top 10 reasons why you should be investing in cryptocurrencies right now, let’s look at what investing generally is.
Investing is like a backup plan to get rich and meet up your financial goals. There are several means one can invest money and make a profit from, either for the long term or short-term benefits. These means include technology, stocks, bonds, cryptocurrencies, oil, agriculture, real estate, and a lot more. For the purpose of this article, we’ll be focusing on investing in cryptocurrencies and the reasons why investing in them is a good choice to make and a no-brainer.
Before delving into the subject, let’s take a look at what investing is.
What is Investing
Investing in a simple term is a means by which one grows his or her cash flow system in order to bring more meat to the table. It’s actually an act of multiplying one capital source in order to maximize profit at a given time frame or end goal. It can be referred to as buying an asset that increases in value over time to make a profit.
An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchase a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth.
According to Wikipedia, Investments is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is to generate a return from the invested asset.
Cryptocurrency investing/investment, on the other hand, is simply acquiring digital assets(coin) like bitcoin, Ethereum, Litecoin, Bitcoin Cash, e.t.c – that increase in value over a period of time. It’s no longer news that cryptocurrency is the new money maker and it’s constantly changing and dominating the financial space in terms of technological evolution.
For this reason, and as the world is constantly revolutionizing towards globalization, getting into the trend that is investing in cryptocurrencies is actually a great choice to make. For anyone who is considering investing, they should be investing in cryptocurrencies, here are 10 reasons why you should be investing in cryptocurrencies
10 Reasons Why You Should Be Investing in Cryptocurrencies.
- Financial revolution.
- There is a high return on investment (ROI)
- The future of cryptocurrencies is becoming more visible
- Security and transparency
- Mass adoption
- Unlimited choice of tokens/coins
- Freedom and flexibility
- Low entry threshold
- Exchanges are highly secured
- Never too late to invest in the crypto market
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Financial Revolution
The world is rapidly changing towards globalization. This has shaped the world’s almost all faucets most especially technological advancements. One of the ways it has brought drastic change is the introduction of digital economics (electronic or virtual currencies) that has changed so many lives and constantly changing. The birth of cryptocurrencies has revolutionized the world economy which is felt in the financial market.
A little history of the evolution of money, the change has never stopped right from the barter system of exchange (exchange for a product or services you have with someone else who has what you’re looking for) to the use of coins and from coins to the use of fiat currencies and now the birth of virtual currencies called crypto or cryptocurrencies. Although, there have been some controversies around it and some countries are in support of its abolishment like china which banned cryptocurrencies in her country.
When you take a close look at this evolution that is happening, you can draw a conclusion that cryptocurrencies are the new money and have come to stay. The first cryptocurrency and the most popular known as bitcoin came into existence in 2009 with a value that is less than a cent, until the present day, bitcoin has recorded an all-time high value of $66,000 per one.
There are over 5000+ cryptocurrencies to invest in and more projects are coming up. Despite controversies surrounding it, the world’s greatest investors have invested over a billion-dollar into crypto. This means crypto has come to stay and is at a point of no return. Investing in cryptocurrencies is a great choice to make and its benefits are enormous.
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High Return on Investment (ROI).
Though the art of trading cryptocurrencies is relatively new, crypto can lead to higher returns when compared to other assets like stocks, bonds, shares, or real estate investments. Cryptocurrencies are highly volatile in nature; this goes to say that you could potentially make a fortune from a single trade. For example, let’s say you got into the game early enough when bitcoin was 10 cents, around October 2010. If you have invested $100, you’d have been able to buy about 1000 bitcoins.
At its all-time high of $66,000, those bitcoins would’ve been worth more than $66,000, not accounting for compounding and assuming you bought and held the asset the entire time without selling. Aside from bitcoin, other projects like Ethereum and Litecoin all have great potential just like bitcoin which can potentially make you a millionaire.
If you can’t afford to invest in any of the mentioned coins due to the fact that the price has gone up or you are on a low budget, there are other crypto assets you can buy for a dollar and when the prices go up, you can potentially make 10x your initial capital. All you have to do is research the project and make sure to read the white paper and everything about the project.
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The Future of Cryptocurrencies Is Becoming More Visible.
The future of cryptocurrency and its adoption is becoming more and more clear to the everyday person. While we all know that cryptos are highly volatile, investing in cryptocurrencies can be a safer and more promising alternative compared to other assets. Take Bitcoin, for example, Bitcoin has had a jagged history and has even been declared lost multiple times.
For instance, in 2017, Bitcoin reached new all-time highs of $20,000, while in 2018, it fell below $5,000. Yet, Bitcoin has survived its ups and downs – and keeps thriving during the ongoing pandemic (with a current price of $38,826) at the time of writing so investors are quite positive about its future.
In fact, many believe that investing in Bitcoin in times of financial uncertainties is safer. As Snappa (Canada’s leading software company) co-founder Gimmer said, “Would you rather save money in a currency whose supply is inflating each year? Or would you rather save in a currency whose terminal supply is programmatically fixed?… Fortunately, I believe we now have a far superior savings technology available to us. That technology is Bitcoin.”
Related to blockchain technology, there’s a new kid and more projects are surfacing. The most current and popular are the NFT projects. Although the evolution of NFTs just began with not much historical data, some experts said these projects won’t last long but temporal. Also, the introduction to web 3.0, the metaverse, and other exciting projects shows that the digital world is revolving and the future seems fruitful. This is a great reason for anyone to consider investing in cryptocurrencies.
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Secucrity and Transpaency
There are many projects out there, over 5000+ are in existence. Some are great and some are false with nothing to write home about. Even though many people still associate cryptocurrency with illegal activities and notorious scams, such as Onecoin and Squidgame token, investing in cryptocurrency is a promising venture, with more and more people putting their trust in cryptos instead of fiat currencies.
As Satoshi Nakamoto – the mysterious figure behind Bitcoin – once said, “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”
On top of that, many cryptos are based on blockchain technology which is considered almost difficult to be hacked. Blockchain transactions are encrypted, signed by a private key, and verified by a public key. At the same time, the technology offers high levels of transparency which is another major reason to consider investing in cryptocurrency.
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Mass Adoption
As of 18th February 2022, bitcoin is said to be mentioned in over 100 million tweets on Twitter. This high number alone shows the high interest in the subject matter. With the increasing interest in cryptocurrency worldwide, more and more organizations are going into crypto. Ripple, for instance, is an impressive coin used by many big financial organizations.
Not to forget that, unlike the current SWIFT system employed for international payments, Ripple allows users to send money beyond borders at low costs and quick processing times.
Believe it or not, two of the leading crypto exchanges in the whole world, Coinbase and Gemini are now banking clients of America’s giant JPMorgan. Governments are also embracing cryptocurrency and going crypto.
While many are trying to develop their own central bank digital currencies, others (like Italy) have recognized bitcoin inheritance. The interest in crypto investing is also increasing in emerging markets, such as Kenya and South Africa.
Major merchants like Virgin Galactic and Microsoft also accept payments in Bitcoin. Though controversies exists in crypto market that it should be banned from existing, it a fun fact to note that the world’s greatest investor Warren Buffet had just invested a billion-dollar into crypto.
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Unlimited Choice of Token/Coin
The truth is, cryptocurrencies have come to stay, and sooner or later it dominance will be felt around the globe and a result of this, more and more digital currencies will be given birth to other than the 5000+ that are already in existence.
Even though nobody questions bitcoin’s authority in the world of crypto investing, the truth is that there are thousands of altcoins to buy and sell out there.
You have an unlimited choice of coins to help you diversify your portfolio and potentially increase your wealth.
While some undervalued coins might be a tricky investment, others do deserve your attention and are a good reason to invest in cryptocurrency. According to experts, they believe that some of the crypto to explode next year are Ethereum, Ripple, Tezos, Tether, Monero, and Bitcoin Cash.
You don’t have to limit your options to buying and selling cryptos. You can also trade a wide range of crypto/crypto and crypto/fiat trading pairs, with BTC/USD, ETH/USD, and LTC/USD being among the most popular crypto to fiat pairs to trade.
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Freedom and Flexibility
This is the most exciting feature about cryptocurrencies that traders love. The fact that is decentralized and is not regulated by any government and the local banks can’t have access to your money. Whether you decide to invest in bitcoin, Ethereum, or Litecoin, your crypto money is only yours. As stated above, cryptocurrencies do not rely on banks that have exorbitant fees just to hold your money.
More so, the crypto market is open 24/7, so you do not need to worry about opening times. You can choose when and how you want to buy and sell. It’s all up to you to organise your time and trading routine. You can trade either full- or part-time, you can trade cryptocurrency while travelling as well.
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Low Entry Threshold
Just like starting a business which is a form of investing that requires a reasonable amount to get started. Also, investing in stocks, bonds or real estate business all require some sort of high investment capital. on the other hand, investing in cryptocurrencies has a very low entry threshold. The good news is that many platforms out there do not require big sums to start buying and selling cryptos. You can start trading cryptocurrency with as little as $100. And some other platform require way more less than $100 and no, there’s no need for complicated and time-consuming procedures and burdensome paperwork.
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Exchanges Are Highly Secured
Although theft cases have been reported about hackers stealing cryptocurrencies from people’s wallets – this seems to question the security of your money when investing. however, mechanism has been put in place to track down hackers.
Exchanges like binance, coinbase, crypto.com and a host of others have a tight secured exchange platform which can’t be broken easily by malwares and if it does occur, these exchanges will take it upon themselves and have the hackers tracked.
While we all remember the tragic story of the notorious Japanese exchange Mt. Gox, the good news is that today’s exchanges are more secure and may even reimburse victims in case of a hack.
Today, a trader can find a reliable exchange that allows them to start buying and selling digital assets; a trader can also find a trustworthy broker to help them trade CFDs (a great option for beginners).
Trading tools are much more user-friendly than before, and crypto sites help investors stay up-to-date with crypto news and major events in the industry. For this reason investing in cryptocurrencies is a great choice to make.
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Never Too Late to Invest in the Crypto Market
When it comes to investing in cryptocurrencies, you are never too late or too early. Although you might have miss the big fish which is bitcoin and probably ethereum, that doesn’t mean you can’t profit from the market. As the popular saying goes “the early birds eats the worm”. Early investors who invested pennies or a dollar when bitcoin came out as of 2009 have already retired and are living their dream lives.
Whether you are a successful bitcoin investor or a crypto enthusiast, it’s never too late to start investing in cryptos. Though some believe that the time to make millions (like some of the early adopters in the industry) has passed, the truth is that, crypto is still a hot market and has more potential.
There’s a prediction by experts that bitcoin could still hit a new all time high at $100,000 or $200,000. Now at the time of writing this article, bitcoin is somewhere around $38,600. Going by the predictions given by expert in investing in cryptocurrencies, you can still milk a fortune out of the industry with a $1000 investment.
Furthermore, if you are considering the fact that you are late, there are over 5000+ cryptocurrences whose value is not up to a dollar, coin such as shiba inu known as SHIB. A $100 investment can still make you a fortune in passive income over a period of time, or other cryptos other than shib. All you have to do is, take your time to study their white paper and research about the project thoroughly before investing.
Summary
From the above stated points, anyone considering investing in cryptocurrencies should know that it is not too late or too early. Now is the best time to take advantage of the trend. The truth is cryptocurrencies have come to stay.
