In the ever-evolving world of investing and finance, not many assets have made waves quite like Bitcoin and cryptocurrency. Digital currencies were quickly popularised thanks to the enormous spike in the value of Bitcoin. The coin’s initial estimated value sat at a low 41 USD for 10,000 Bitcoins. Now, one Bitcoin is worth over 27,000 USD.
While investors and traders have made enormous profits in the world of crypto, many have cashed out with nothing at all. So, you might be wondering if it’s worthwhile to buy into crypto.
We’ve listed five reasons you won’t regret buying digital currency.
Potentially High Returns
Cryptocurrencies have a history of being incredibly lucrative. Those who purchased a few coins during its inception soon held enormous profits. The average price appreciation for Bitcoin remains impressive, and the value continues to climb over the years. Even though crypto is also known to be highly volatile, this risky detail makes it possible to buy coins during price plummets, allowing an opportunity for higher growth margins later on.
Buying crypto is exceptionally straightforward. You won’t need to endure lengthy processes as you would when opening a traditional banking account. Instead, you can simply sign up for a digital wallet and buy coins from crypto exchanges. You can even sell gift cards for crypto or earn crypto through mining and other means.
As more crypto enthusiasts explore new avenues for investing, coins are becoming more accessible in terms of buying and selling.
Diversify Your Investor Portfolio
Any successful investor knows it’s not wise to keep all your eggs in one basket. If you do, you will lose everything if your single asset collapses. Instead, holding a diverse portfolio means you have more stability as an investor.
With this, it’s worthwhile to add cryptocurrency to your portfolio. Because cryptocurrencies have low correlations with other traditional assets such as bonds and stocks, buying crypto to diversify your portfolio can help spread risk.
Cryptocurrencies are decentralized finance, which means banks or intermediaries do not hold coins. There is no “middleman,” so to speak, regarding crypto. All transactions are recorded and verified by parties on the same blockchain.
This means that you can access and use your coins without having to give permission or provide records to anyone. Your financial records are incredibly private, which is why digital currency is an excellent investment.
Cryptocurrencies are no longer a controversial investment idea; digital currencies are now widely accepted by vendors around the globe. Because crypto value is primarily influenced by popularity, the increasing mainstream recognition suggests that investors will continue to reap rewards.
Whether you decide to buy Bitcoin, Ethereum, Polygon, or any other leading cryptocurrency, be sure to find the right digital wallet and exchange platform. Because there are some untrusted sites out there, you must verify websites before signing up with your personal information. With this, it’s often best to opt for top-rated wallets and well-known crypto exchanges.