6 Reasons to Invest in Cryptocurrency Today
In the past few weeks, we’ve covered some of the basic aspects of blockchain technology. In this post, we are going to share 6 reasons why you should invest in cryptocurrency. By now, you have hopefully become familiar with the unprecedented amount of potential blockchain beholds and you’re now pretty much convinced it really is the future.
Disclaimer before continuing: We are not a financial institution: All we are trying to do is share informative material and educate our readers on blockchain technology and the futuristic virtual currencies such as cryptocurrency. We urge you not to take this write-up as a professional investment advice.
We understand you are curious to know why now is the best time to invest in cryptocurrency. Do have a read!
In this blog post, we will be highlighting the key 6 reasons to invest in cryptocurrency. We must mention again, the following post is simply our opinion purely based on the facts collected from various online sources on cryptocurrency. While we dry run to guide you as much as possible on investment in cryptocurrencies, we recommend always doing your homework before investing anything into a stock, be it a virtual currency.
So, before kick-starting, let’s have a quick sneak peek on the components of a cryptocurrency and see why it is one of the hottest topics in the circuit today.
What is cryptocurrency?
Is it a 21st-century unicorn or the futuristic money?
The tagline itself highlights how these blockchain-enabled digital currencies are going to play a major role in future and alter world economy. That being said, we are yet to find out what cryptocurrency is and later we can jump to why you should invest in cryptocurrency. Continue reading!
Here’s a breakdown with a simple definition –
- A cryptocurrency is a digital currency created with the help of blockchain technology and can be only transacted electronically as a medium of exchange
- This virtual money uses encryption techniques to control the creation of monetary units and to verify the transfer of funds. Hence it is very secure
- As we have already referred to it as ‘virtual/digital money’, hence it has no physical form and is not redeemable in another commodity like gold
- This digital money does not have any centralized regulating authority and is hence not regulated by any bank or financial institution. The network is completely decentralized
- Some popular cryptocurrencies available in the market include Bitcoin, Litecoin, Namecoin and PPcoin to name a few.
When technology was still in its nascent stage in the 90s, there were several attempts made to introduce digital currency to the world, but it was only in 2009 a group of programmers under an alias Satoshi Nakamoto introduced Bitcoin to the world. It’s the world’s first ever cryptocurrency developed on blockchain technology. Since then the concept of digital money has only skyrocketed. With the number of advantages this currency endures, smart thinkers and tech intellectuals are willing to invest in cryptocurrency than on any other share.
6 reasons you should invest in cryptocurrency
One of the major reasons we give you on why you should invest in cryptocurrency is security. Its encryption technique is based upon cryptographic security. Cryptography eliminates the dependency on banks and their hired IT agencies that ensure the safety of your money and banking details. While net banking is always prone to tampering and theft; with cryptocurrency, it is highly unlikely your account will ever be compromised.
The basic aspect of cryptocurrency is it cannot be compromised as it is the ‘blockchain’ itself. Blockchain in today’s technological spectrum can be considered to be the safest of all for it functions on a ‘proof of work’ system. To elaborate it, once a transaction has been stored on the blockchain, it is securely preserved and cannot be altered without a consensus decision. The transaction instead becomes part of an immutable history of records and cannot be reversed and cannot be forged above all.
The counterfeit nature of crypto is a huge advantage for investors and traders and hence millennials are willing to invest in cryptocurrency. Even top financial websites are also advocating this virtual money.
The pseudonymous component of the digital money enables the transaction to never get connected to the real world identities. This means, once you buy the cryptocurrency and are given the crypto address, it is then almost impossible to track it to you. These crypto addresses are random chains of around 30 characters. While it is always possible to determine the transaction flow, it is not that easy to connect the real world identity of users with those addresses.
This privacy feature is one of the best-selling points of cryptocurrency, as it prevents external parties, entities, and Govts. from knowing what you’re buying or where you’re investing, how much you have spent and who is your seller.
- Transaction Fees
Another major reason to invest in cryptocurrency is that this digital money charges minimal as compared to any other money transaction methods. Usually, there is some amount of transaction fees involved for the most expensive cryptocurrency because the miners are compensated by the network. The cryptocurrency mining charges fees which are then paid to the blockchain engineers, responsible for creating and maintaining these wallets.
If we compare this fee to the ones charged by the banks and financial institutions, we can see how inevitably we are saving.
- Easy to Invest
Unlike the traditional share market which involves a strenuous procedure to get started, cryptocurrency investment procedure is quite easy allowing any beginner to join the bandwagon of cryptocurrency trading. They can easily invest in cryptocurrency, as it is permissionless and can be accessed 24×7. You never require any permission to access your crypto or check on cryptocurrency exchange rates. You can easily do the cryptocurrency exchange without the help of any sophisticated software, adequate training or licenses and the best thing is you are free to do it.
Carrying a large amount of money abroad has always been a major concern for the travelers. Well, we understand certain jurisdictions have made some stringent laws so as to prevent trading of black money. These laws at times have however created problems for the common man who wants to genuinely carry his white money abroad. This is when cryptocurrency could be of great help, as these currencies are easily and legally portable. One can carry million dollars’ worth of cryptocurrency in just a memory card and there is no way of getting robbed even.
- Fastest Transaction
The last but not the least reason to invest in cryptocurrency is it renders the fastest available transaction method. There are some international banks that ensure Faster Same Day Payments, but such facilities also come with limitations. You can only send a certain amount per day and adding to your misery, you can only transfer to the partnering banks. It is indeed amazing to realize how cryptocurrency works. Unlike the traditional money transfer methods, you can send money anywhere with cryptocurrency and it will arrive minutes later. Cryptocurrency transactions are presently the fastest money transfer procedure and globally available.
Conclusion – Are you now ready to invest in cryptocurrency?
You will have to debunk and determine all the aspects so as to understand the revolutionary impact of cryptocurrency investment. Here is the summary –
- The cryptocurrency trading is permissionless that means you don’t need anyone’s permission to buy or exchange
- It is irreversible that means your money is safe from theft and fraud
It is pseudonymous that means you can always hide your identity, thus preventing potential hackers to reach out to you by accessing your details of payment
- It offers you fastest transaction, thereby helping you greatly during any emergency
- It is cheaper as it charges less to no amount of fee
- Your money is unaffected by the monetary policies imposed by banks
With such independent components, cryptocurrencies will, for good or worse, free you from the burden of the monetary policy. They eliminate the dependency on banks that take on inflation or deflation by manipulating the monetary supply. Hence, your cryptocurrency cannot be affected by inflation in your country.
So if at all you have made up your mind to invest in cryptocurrency but wondering how then stay tuned for our follow up article.