The birth of Bitcoin in 2009 opened up opportunities to invest in a whole new kind of asset class – cryptocurrency. Lots went into space early.
Intrigued by the huge potential of these young but promising assets, they bought cryptos at low prices. So the growth in 2017 has made them millionaires/billionaires. Even those who did not place large bets made decent profits.
Three years later, cryptocurrencies are still profitable and the market is here to stay. Maybe you are already an investor/trader or maybe you are about to try your luck. In both cases, it makes sense to know the benefits of investing in cryptocurrencies.
Cryptocurrencies have a bright future
According to a report called Imagine 2030 published by Deutsche Bank, credit and debit cards will become obsolete. They will be replaced by smartphones and other electronic devices.
Cryptocurrencies will no longer be seen as outcasts, but as alternatives to existing monetary systems. Their advantages such as security, speed, minimal transaction fees, ease of storage and relevance in the digital age will be recognised.
Specific regulatory guidelines will promote cryptocurrencies and promote their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030 and nearly 350 million by 2035.
An opportunity to be part of a growing community
#IndiaWantsCrypto by WazirX the company recently completed 600 days. This has been a massive movement to support the adoption of cryptocurrencies and blockchain in India.
In addition, the recent Supreme Court decision overturning the RBI’s ban on crypto-banking from 2018 has created a new surge of confidence among Indian investors in Bitcoin and cryptocurrencies.
The 2020 Edelman Trust Barometer report also points to an increase in people’s faith in cryptocurrencies and blockchain technology. According to the results, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency/blockchain will be positive.
As a cryptocurrency investor, you will become part of a thriving and rapidly growing community.
Increased profit potential
Diversification is an important investment rule. Especially at this time when most assets have suffered heavy losses due to the economic hardship caused by the COVID-19 pandemic.
While bitcoin investments have returned 26% year-to-date, gold has returned 16%. Many other cryptocurrencies have registered triple-digit ROIs. Stock markets, as we all know, have performed horribly. Crude oil prices famously fell below zero in April.
Including bitcoins or any other cryptocurrencies in your portfolio will protect the value of your fund in such uncertain situations in the global market. Billionaire macro hedge fund manager Paul Tudor Jones was also struck by this fact when he announced plans to invest in bitcoin a month ago.
Cryptocurrency markets operate 24X7X365
Unlike regular markets, cryptocurrency markets operate 24 hours a day, every day of the year. This is because digital currency systems are essentially designed using software code protected by cryptography.
The operational plan does not involve human intervention. So you can freely trade crypto or invest in digital assets whenever you want. This is a great benefit! Cryptocurrency markets are very efficient in this regard.
For example, Bitcoin has successfully processed transactions with a 99.98% uptime since its inception in 2009.
No documents or formalities are required
You can invest in Bitcoin or any other cryptocurrency anywhere and anytime without any extra conditions.
Unlike conventional investment options that require an absurd amount of paperwork to prove yourself as an “accredited investor”, crypto-investing is free for all. In fact, this was the intended purpose of the birth of cryptocurrencies. Democratization of finance/money.
To buy any cryptocurrency at WazirX, you need to open an account for which you simply need to provide some basic information, including your bank account information. Once they’ve been tested for a few hours, you’re good to go.
Sole Proprietorship in Investments
When you buy Bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction is peer-to-peer.
Unlike bonds, mutual funds, stock brokers, no third party “manages your investments” for you. You buy and sell whenever you want.
User autonomy is the biggest advantage of cryptocurrency systems, which provides incredible opportunities to invest and build a corpus on your main capital “independently”.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to start your crypto investing journey.