Cryptocurrency is the new in-thing for Gen X in India. Within the past couple of years starting 2018, the wave of this new fad seems to have been catching the youth and the elderly alike. It has also taken the financial industry by storm. India is increasingly witnessing huge demands for cryptocurrency that have led to the emergence of various platforms dealing in trading, buying, and selling cryptocurrencies. According to the 2021 Global Crypto Adoption Index by Chainalysis, a blockchain data platform, India was ranked second in terms of global cryptocurrency adoption followed by 19 other countries who have followed suit.
Today, along with the stock market, a new wave of cryptocurrency is also seen. This is the ideal time to learn about and invest in the same.
If you wish to invest in the cryptocurrency space but are not aware of its advantages and why investing in crypto will help you yield long term results, here’s a quick look at the top 5 reasons to start investing soon:
1. Control over your digital assets: The unique ability of a digital currency to provide ownership and control of your digital assets is one of the top reasons to invest in cryptocurrency. Since the value is not determined by the exchange itself, it allows traders to enjoy liberty and leverage the benefit in their favor.
2. Deflationary assets: As cryptocurrencies like Bitcoins have a limited supply, this makes them deflationary assets by increasing their purchasing power over a period of time. Each cryptocurrency has an algorithm that puts a cap on its total supply. This way a person involved in the same, will have control over the amount to be invested.
3. Transparent and secure: Cryptocurrencies gained momentum due to their distinct ability to be extremely transparent and secure. Owing to its open-source and publicly-verifiable technology, crypto platforms enable users with an easy-to-use and secure platform for trading. As Satoshi Nakamoto, the mysterious figure behind this fad once said, “The root problem with conventional currency is all the trust that’s required to make it work.” This feature helps people to build trust in electronic devices. To sum it up, blockchain transactions are encrypted, signed by a private key, and verified by a public key.
4. Good choice for long-term investment: Despite being irregular and volatile, investing in crypto is considered beneficial in the long run as it can become a source of savings post-retirement or can assist you in overcoming your financial burdens and crisis. This is indeed a hot topic.
5. Flexible and Independent trading: This digital currency allows trading from any part of the world at any time. The 24x7 accessibility of crypto trading enables traders to organize their trading according to their convenience. Besides, there are several altcoins like Ethereum, Dogecoin, Ripple as well which increase the potential of gaining wealth and help traders diversify their portfolios.
6. Cryptocurrency Investment Can Lead to High Returns: Money makes the world spin and people this is the main reason to invest in the same. This is a motivation that is considered good enough for people to invest in this new craze that has hit the world positively. If one compares these cryptos to the stock market, it can be seen that it would be better than the former said in the coming few years. The earlier one learns about this, the better it would be for him/he in the long run.Cryptocurrencies are highly volatile, which means that one can potentially achieve high returns from a single trade.
7. Cryptocurrency Gives You Independence & Flexibility : Unlike stock market/share market/banks/, cryptocurrency is open 24/7 365 days. At your convenience, you can play around. You can trade, sell, buy whenever you feel irrespective of the time of the day or night. This would be available at the tips of your fingers at all times. All one would need is a device.
8. For Portfolio Diversification: Looking for more reasons to invest in cryptocurrency? Even if you are not a crypto enthusiast, investing in cryptocurrency is a great option in order to diversify your portfolio. What is portfolio diversification? It’s simply a great method to reduce risks by spreading your investments and exploring different assets. As people say, you shouldn’t put all your eggs in one basket, right?!
9. Unlimited choice of coins: The good news is one doesn't have to limit the use of coins. There are unlimited coins that one can use in the same. Be it ten, hundred, or thousand, it's your choice.
10. Blockchain Technology Can Transform the World:With the increasing use of smart contracts and decentralized apps, blockchain technology can benefit different sectors, including gaming, medicine, businesses, and voting. Just ask any gamer about the impressive innovations blockchain-based technology can bring into the world of gaming and digital ownership!
Before entering into the world of crypto, its imperative for users to consider following this checklist of dos and don'ts :
The first and foremost step is to conduct your own research and get adequate knowledge of how the market operates so that you do