Even if someone didn’t have an interest in any type of investing, they would have heard all about cryptocurrency and the financial rewards many people have enjoyed due to smart – or even fortunate – investments.
Of course, news stories mainly revolve around one specific cryptocurrency: Bitcoin. This is for god reason, as the value of Bitcoin – deemed the original form of cryptocurrency – has skyrocketed in a relatively short space of time. In 2010, Bitcoin was selling for $0.08 per coin. While the Bitcoin market is a volatile one, the value of one coin is currently at over $17,000 at the time of writing.
That means if you bought around 60 Bitcoins in 2010 for $5 and left them sitting around until now, you could trade them in and become a millionaire right now.
This type of story is why the popularity of cryptocurrency has exploded in recent years. Yet just how popular is it as an investment venture, and why has it risen so far?
The previous example is an extreme one, admittedly. You’re highly unlikely to find another cryptocurrency-related investment that can turn $5 into $1m within ten years.
With that said, the general returns offered by cryptocurrency are why it has gained considerable traction as an investment opportunity. Even though they have only been around for about a decade, the proof is there for all to see: cryptocurrencies can be a whole lot more profitable than many other investments.
In the traditional US stock market, the highest return you can come to expect is about 20%. Yes, certain events – such as a global pandemic, for example – can skew the markets to a significant degree in both directions. Yet in a more normal setting, 20% is about the best you can get from the stock market – which is a very solid result, by the way.
Cryptocurrencies, on the other hand, have the potential to show significantly larger changes in their prices – and over a relatively short period of time. It’s true: profits are never guaranteed, but this can be said for any investment. As long as it is handled with a viable strategy and you stay up-to-date with the latest news, it’s possible to generate a healthy profit from a cryptocurrency investment.
Traditionally, it’s a complicated process when trying to complete an investment in bonds, stocks, or any other type of entity. Plus, not only is it time-consuming and laborious, but many investment opportunities require a high financial entry point. For instance, you’re not going to get away with $100 for, say, a real estate investment. You’d need to inject a much larger sum of money to even think of getting started in most investment-related fields.
Cryptocurrency is an exception. Taking part is an easy process, both in terms of the amount of money you need to invest and the steps you need to take in making it a reality. There’s no need to visit banks, deal with institutions, and sign papers. You just create an exchange account, get a digital wallet, invest in your cryptocurrencies of choice, and track your assets effortlessly.
Plus, if you’re not completely sure how the cryptocurrency markets work, don’t worry. You can actually practice for free with Traders of Crypto. This platform provides a virtual trading game where you can test strategies without the risk of losing any real money. Best of all, you can win free cryptocurrency if you perform well and land one of the monthly prizes on offer.
Your money is yours alone
When you place your money into a bank account, you can never be 100% sure you’ll ever see it again. After all, you – and your money – are at the mercy of other individuals and organizations. If the bank was to go bankrupt or be robbed, you could suddenly lose access to money that is rightfully yours. So while you may feel like placing your money into a bank is a safe investment, it could quickly turn sour within an instant.
Cryptocurrency delivers a level of independence that simply cannot be matched by other investment means. Simply put, your money is yours only – and it will remain yours forever. Although you do have to be careful in how you initially invest, as using an unauthorized cryptocurrency exchange platform can lead to you losing all of your money. Make sure to research which platforms are best.
With a credible exchange platform, you don’t have to cover any exorbitant fees. You don’t have to rely on a financial institution for the transferring and holding of your money. It’s yours and yours alone, and this future for an open and decentralized economy is another reason that is boosting the popularity of cryptocurrency investment.