5 Reasons to Start Buying Cryptocurrencies

It’s now just a little over a decade since the mysterious “Satoshi Nakamoto” released the whitepapers for Bitcoin. Within this short time, thousands of cryptocurrencies have entered the mainstream and with it, there have been so many issues and concerns. Talk of volatility, the possibility of hacks as witnessed with Mt Gox, and lack of regulations that leave the industry prone to fraudsters. Scary, right?

Yet, that is only one side of the coin. On the flip side, there are numerous benefits of investing in the niche. You’ll be surprised, even some of the cases against crypto assets are exactly the reason why you should join in on the action – like its volatility (more on that later). So, here are the top five reasons to buy cryptocurrencies.

Low Entry Threshold

Most forms of investment have a large minimum initial capital but not cryptocurrencies. Cryptos let you join in on the fun for as low as $2. They also do away with time-consuming steps and cumbersome paperwork, allowing you to hold assets in just a few clicks. What’s more, you don’t have to go through institutions, banks, or other third-party vendors when purchasing digital coins unless you want to.

The accessibility of cryptocurrencies allows you to trade anytime and anywhere. Moreover, with hundreds of crypto coins and tokens, each with unique benefits, the industry is welcoming to everyone – from retail traders to those who wish to store value. It is also part of why the adoption of crypto coins is accelerating steeply.

High Liquidity

Liquidity describes the speed with which you can convert an asset into cash without having a significant impact on the market price. High liquidity is associated with better prices, short transaction times, and technical analysis accuracy.

To add some perspective, the number of blockchain wallet users around the world stood at over 70 million as of March 2021. What’s more, the daily trades of BTC alone are in the tens of billions. Although forex is still the leading liquid market, cryptocurrencies are flourishing when compared to other industries such as real estate.

The liquidity of digital coins can be attributed to:

The increased number of exchanges: a cryptocurrency converter such as Coinbase, Coinmama, or Godex allows you to trade your coins for other crypto assets. Many exchanges offer numerous opportunities for trading their coins.

Wide acceptance: cryptocurrencies are now used in online shops, stalls, and many other businesses.

Increased awareness: leading to their acceptance and use.

Innovative solutions: for instance, the launch of cryptocurrency ATMs and payment cards as well as the use of credit and debit cards to purchase coins.

The Future Is Looking Bright

It would seem the craze for cryptocurrencies is only in the early phase, and the future holds so much more. Governments around the globe are passing legislation to govern the adoption of crypto. Besides, central banks are busy developing digital currencies. If that is any indicator, the world has made peace with the fact that cryptocurrencies are here to stay.

Even Wall Street is going crypto, especially after BTC outperformed renowned asset classes such as gold in 2020. In August last year, the business analytics company MicroStrategy invested $250 million in cryptocurrency. It has since increased the figure to 3.5 billion dollars.

Potential for High Returns

So, cryptocurrencies are highly volatile. Perfect! This attribute has made thousands of traders millionaires in spans of less than a year. Case in point: bitcoin’s price fluctuations over the years since 2013. Fast-forwarding to the 2017 BTC bull run, you could gain as much as 1,350% return!

Sure, the price dropped in the following year from $14,000 in January to lower than $4,000 at the end of the year. Yet, those who bought their BTC in December 2018, when the price was low, can now sell at about $55,000, making a considerable profit. The increasing number of entry-level coins also means that you have numerous chances to back a growing team.

However, while it is a potential for high returns, this is not a guarantee. Their high volatility also means cryptos can swallow your investment whole if you are not following market conditions keenly or simply get unlucky.

It Has Never Been So Easy!

Never before has investing in cryptocurrencies been so easy. With the ongoing advancements in digital technology, anyone from anywhere can learn about the cryptocurrency world. From tech forums to online courses and YouTube channels, there is so much trading information out there!

You can learn the rules of the game for free. And after you do, you’ll find out that buying cryptocurrencies is even easier than learning the basics. You can even buy btc with credit card if it makes it easier for you.

Final Word

Much like any other investment, you stand to lose or gain by buying cryptocurrencies. With patience and a keen strategy, however, your probability of winning increases almost exponentially. Not to mention, the earlier you get on the wagon, the higher your chances of becoming an expert by the time digital currencies become the order of the day.

*This is NOT financial advice and does not represent the opinions of the owners of this website.

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