After the financial crisis in 2008, many financial firms and smart investors realized the importance of asset allocations and the benefits of diversifying portfolios. And coincidently, the first cryptocurrency, Bitcoin, came into the market. In the initial years of its introduction, it barely had any recognition. But, after a decade or so, Bitcoin propelled into the spotlight, and its price started to skyrocket at a remarkable rate. This was when Bitcoin became the new hotcake in the market.
In recent years, trading cryptocurrency has become widespread, and the number of participants in this space had exceeded 500 million. And the reasons to account for this are plenty. However, in the present day, there is more supply than demand for cryptocurrencies. Nonetheless, Crypto enthusiasts claim that the technology behind Bitcoin – Blockchain is going to revolutionize the current technology and shake the modern economy to its core.
In this article, we will be taking you through the reasons why you should invest in cryptocurrency. We will also talk about the considerations you need to make before investing, and also answer to the question if the cryptocurrencies are the new alternative investment in the present world.
Should you invest in Cryptocurrency? Yes!
Below are the reasons we have listed out on why investing in cryptocurrencies is not a bad idea.
Nobody has access to your money
One thing investors are highly concerned about their investment is the security of their money. Investing in Bitcoin offers high security for the same. And this is through the powerful blockchain technology. The Bitcoin transactions are powered by the blockchain network. With this technology, transactions are encrypted, preventing access to it from the intermediary sources at every stage of the transaction process. Moreover, the transactions are stored in blocks in a decentralized fashion, which means that information cannot be deleted or tampered.
On the other hand, we have the banks that work differently from the blockchain technology. The banking transactions are centralized, and there is the existence of an intermediary between the two users. This directly reduces security in the transaction. Also, in the case of bankruptcy, the money that you stored can be stolen or robbed. But, in the case of Bitcoin, this is not possible. It remains with you forever.
No Government Involved
Bitcoin Blockchain offers a new revolutionizing way to handle assets. That is, with blockchain, the middlemen such as banks or government are eradicated. They do not have any control and access on the circulation of the cryptocurrency. So, the transactions that happen on the blockchain network is one to one.
Transfers made simple
Every country has its own fiat currency. This can be dealt withing the country only. To transfer money to another country, one must initiate international bank transfer, which is typically quite expensive. But, in the case of cryptocurrency, the unit of the virtual currency is the same throughout the world. Hence, the invested coins can be transferred anywhere with lower costs.
Investment can’t get any easier
The first question that pops in is “how to invest in cryptocurrency?” Well, investing in cryptocurrency is much simpler than you think. All that is needed is internet access and funds to make an investment. Below is the simple procedure to make an investment into cryptocurrency:
- Get a card where the money is available to purchase the virtual cash online.
- Create a cryptocurrency wallet.
- Find where to invest in cryptocurrency.
- Create a purchase offer.
- Once the crypto is purchased, the coins will be transferred to your wallet.
Now, the working is the same as that of any other exchange market. The prices fluctuate, and you can buy more or sell at any point in time.
Forecasts are on the positive side
An investor’s mindset should be towards having a long-term sight rather than running behind short-term returns. When it comes to the moves in the cryptocurrencies, they can drive the investor crazy – which could lead to making the wrong decisions in the market. So, selling with panic at a lower price than the purchase price is not the way to do it.
Cryptocurrencies are known for their volatility. The fluctuations are inevitable. Drastic moves happen all the time, so predicting the short-term trend is harder than predicting the long-term trends. As per the analysts, Bitcoin and other cryptocurrencies are likely to grow again despite fall in 2018. However, the time frame for this should be quite wide (2-4 years).
The Future of Cryptocurrency: Which are the Best Coins to Buy in 2020?
In the present world, we are moving towards a utopian society where the economy is completely decentralized, and people use cryptos instead of fiat currency.
The issue with the people is that they judge something based on the short-term trend and ignore the long-term benefits associated with it.
Now, let’s see what the 2020 cryptocurrency market will look like in the coming future. We have listed out some of the best ones we found from the basket.
Well, this coin being on the list is obvious. Most crypto analysts are certain that this coin will remain as the top crypto in 2020 too. It’s believed that its value will be sustained due to these three following reasons:
- Inflow from institutions
- Fast adoptions rate
- Potential global crisis
According to our analysis, the Bitcoin price is expected to skyrocket by over 200 percent in a period of two years. Some internet users ha e predicted Bitcoin to touch $27,500.
Ethereum is the coin under controversy at the moment. The predictions for this cryptocurrency gravitates towards the downside. Ethereum is one of the major dApp development platforms, which makes Ethereum still valuable. But, if the network is incapable of handling the transaction load, things can turn around.
The Ripple payment protocol has been doing so well that it wouldn’t be a surprise if it becomes the king of banking structure. So, the outlook for XRP in 2020 is quite optimistic. There are rumors that Ripple has partnered with Western Union.
When it comes to the future of Ripple, by considering how it has been transforming the current payment system, the predictions of this cryptocurrency is positive for both short as well as long-term.
Cryptocurrency is a new era for modern technology and the economy. Based on how it has been showing advancements in the technology, this would definitely sustain in the future. This, in turn, could mean a good investment choice. Also, investing in cryptocurrency makes a portfolio much more diverse, which eventually reduces risk. So, if the straight question is, “Should I invest in cryptocurrency?”, the answer is “Yes.” But before investing, one must research and bid on the right horse for reduced risk and optimum returns.