Cryptocurrencies are rising in popularity, and it’s time that you consider the benefits of investing in this asset. Market Insider writes that there were already 106 million cryptocurrency traders in January. And though cryptocurrencies are mainly associated with millennials, there’s a growing number of investors over the age of 55. These digital tokens have been a hot topic lately, especially following the price increases of Bitcoin and Ethereum. But besides the potential ROI, there are plenty of other reasons why it’s worth investing in cryptocurrencies.
More industries are adopting blockchain technology
Blockchain technology is the backbone of cryptocurrencies, like Bitcoin and Litecoin. This is because it serves as the digital ledger where crypto transactions are permanently recorded. Recently, it was found that blockchain can be used to record information outside of crypto transactions. Now, according to tech writer Daniel Ling, both businesses and consumers are using the blockchain to track and manage their transactions. Thus, financial institutions, real estate companies, and even utility companies have started using the blockchain for its transparency and convenience. Big organizations all over the world, like Tesla and IBM, are already adopting blockchain technology. So you’re investing in currencies that well-known companies use and trust.
It’s great for diversifying your investments
Cryptocurrencies are popular among the youth since they are a great way to boost your investment portfolio. Bitcoin, Ethereum, and other cryptocurrencies currently offer promising returns. However, Onramp Invest CEO Tyrone Ross emphasizes that you need to have a financial plan before investing. This way, you can balance the volatility of your assets and get better chances of earning profit. Moreover, financial experts suggest that higher allocations of cryptocurrencies are better for individuals who have longer time horizons since it can help younger individuals work their way towards financial independence.
You have complete control over your assets
Cryptocurrencies have revolutionized transactions by eliminating middlemen. So you have complete power over your profits. Cryptocurrency expert Carol Alexander states that cryptocurrencies are reinventing finance by giving the control to investors. For example, artists and musicians are already using the nonfungible tokens (NFTs) provided on Ethereum and other public blockchains to sell to the public without going through record labels, banks, and lawyers. Similarly, you can invest in or transact with cryptocurrencies without going through authorities and other financial institutions.
The crypto investment process is fast and secure
Traditionally, you have to go to a brokerage firm and pay service charges to be able to invest in any asset. Bitcoin and other cryptocurrencies have made investments easy because you can trade and manage assets through different options. For instance, our article on “The Easy Way to Buy Bitcoin” recommends the use of P2P exchanges when purchasing assets since it is a fast, reliable, and affordable way of transferring funds. Platforms like Paxful and Coinffeine have a security system so that you can avoid any fraudulent exchanges. Furthermore, you’re dealing with fellow traders on these platforms, which is why you can choose fast and convenient options for your payment. You can use bank transfers, credit card payments, and even PayPal to own your chosen cryptocurrency.
These digital assets offer security, control, and convenience, which is why many organizations and individuals are investing in them. Given the power and the support that cryptocurrencies get, these digital tokens will be here to stay.
exclusively written for Nooor Blockchain Armenia by Jill Rose
Originally published at https://nooor.io on August 25, 2021.