April 14, 2024

Business Bib

Business & Finance Blog

7 reasons you should invest in cryptocurrency

3 min read

The media never seems to stop discussing crypto coins.

Many people start wondering if investing in crypto is a good idea.

Today, we’re going to prove you that it actually is.

  1. Increased crypto acceptance

When Bitcoin was first introduced to the world in 2009, people in the traditional financial industry didn’t understand what it was. They were afraid of Bitcoin and were quick to call it a fraud. These assumptions increased after the Bitcoin price drastically rose.

Nowadays, as there are almost 26 million crypto-asset owners, financial institutions, as well as individuals are already warming up to the idea of crypto coins. Some of the TOP cryptocurrencies such as Bitcoin, Bytom and Ripple are rapidly gaining mainstream adoption.

Moreover, Ripple is already said to replace SWIFT (Society for Worldwide International Financial Telecommunication) network for international transactions.

  1. Privacy

One of the key components of most crypto coins is decentralization. These assets are not controlled by any authority instead they are governed by everyone in the system.

This means that no one can maddle your personal transactions. This isn’t the case with traditional banks that possess all of your personal information and track your transfers.

  1. Immunity to Inflation

The number of almost every crypto-asset is finite. When Satoshi Nakamoto created Bitcoin, he created only 21 million of them. Currently, more than 17 million of them are in circulation.

This makes crypto coins immune to inflation as more coins can’t be created. Because of this, cryptocurrencies are widely used in countries where hyperinflation is present.

  1. Better transactions

Crypto transactions have been known to be superior to bank transfers for some time now. Firstly, when it comes to international transfers crypto-assets are much faster and in some cases even instantaneous.

On the other hand, the fees are much cheaper. Crypto transactions are also irreversible.  

  1. Security

Crypto coins are much harder to steal than any other type of money. Although you do hear a lot about crypto exchange and wallet hacks, the reality is that there are much safer ways of storing your crypto-assets such as hardware or paper wallets.

  1. Emerging regulations

For the first half of the crypto history, the market was highly unregulated. This, in turn, gave way to crimes and frauds.

Then, many countries seeing this became very cautious of crypto coins banning them altogether. However, this wasn’t the right approach either.

Now, in many western countries, the conversations about crypto regulations are ongoing trying to find a way to stop terrorism funding, fraud and other illegal activities associated with crypto-assets. Some countries have already implemented laws on crypto coins.

  1. Diversification

As an investor, it is always important to not put all of your funds into one asset. Although there is diversification within crypto, crypto-assets themselves can be one of the various assets you choose to invest in.

When you diversify your investments, the probability of you losing all your funds significantly lowers. Choosing to invest in crypto coins you also gain a highly volatile asset that can considerably rise in value in a rather short span of time thus increasing your holdings.