Why Should You Invest in Cryptocurrency?

To invest in cryptocurrency seems like a logical choice. After all, it is a relatively new asset class that is worth over $1.25 trillion. It has been 13 years since the launch of the first digital currency, bitcoin. And in this short span, the cryptocurrency market has come a long way. It has disrupted the traditional finance system. Further, it has given rise to a new generation of millionaires.

If you have been on the fence about investing in cryptocurrency, read ahead. We will explain the fundamentals and why you should invest in cryptocurrency.

Three things you should know before investing in cryptocurrency:

  1. What are cryptocurrencies?
  2. Cryptocurrencies are digital assets enabled by blockchain technology. There are various blockchains that power cryptocurrencies. They might have started as a medium of exchange as a hedge against inflation. However, today cryptocurrencies are much more than a mode of payment. With various developers working on the platform, the functionality of blockchains has expanded. As an extension, cryptocurrencies are now much more than merely a medium of exchange.

  1. Beyond a method of payment, what are the other uses of cryptocurrency?
    1. You can use cryptocurrency as a store of value. Unlike other stores of value like bonds, precious metals, or real estate, crypto is digital and mobile. This makes it a more convenient option to trade or exchange in the future.

    2. Since there are no intermediaries in crypto transfers, it offers low-cost transactions. In addition, these transactions are secure and instantaneous.

    3. You can use certain crypto tokens as governance tokens within a community. Owners of these tokens have the right to vote in decisions impacting the token’s community. For instance, fan tokens like $PSG give its holders power to influence certain decisions regarding the club, among other benefits.

    4. You can use utility tokens like iOWN Token for accessing products and services within their ecosystem.

    5. Blockchains like Ethereum, Solana, Tezos, etc. support the creation and storage of non-fungible tokens or NFTs. NFTs can be used to represent ownership of a digital or physical asset.

    6. Digital token-based crowd-funding also makes use of cryptocurrencies. Startups and SMEs often use Initial Coin Offerings, Initial Token Offerings, and Initial Exchange Offerings to raise capital for innovative blockchain-based start-ups.

  1. What are the benefits of investing in cryptocurrency?
  2. Cryptocurrencies have the potential to offer large ROIs as compared to more traditional types of investments. S&P index funds, precious metals like gold and silver, real estate, and bonds are some of the traditional investment options that people usually opt for. Below is a comparative chart depicting investments made in different assets over a 5-year period:
    This chart correctly demonstrates the potential of investing in cryptocurrencies. That being the case, it far outweighs the profits as that of its contemporaries. Apart from this, time and location do not affect cryptocurrency trading. Thus, cryptocurrency trades take place 24/7 across the globe.

How do I invest in cryptocurrency?

The simplest way to invest in cryptocurrency is by buying it. You may buy it through an exchange or trading platform like IN4X Global. Simply exchange your cash for your desired crypto. Moreover, you can look out for campaigns that reward you with a bonus for buying crypto.
Similarly, you can buy it through P2P transactions using a decentralized exchange. In addition to this, there are Bitcoin ATMs that let you exchange your cash for bitcoins. 

How does the next decade hold for cryptocurrency?

During the Covid-19 pandemic, there was a significant increase in crypto adoption. Even institutions like traditional banks and conglomerates started investing in cryptocurrencies. A host of businesses now allow users to buy products and services using cryptocurrencies. Small merchants and large corporations have also started accepting cryptocurrency payments.
The more recent Ukraine-Russia conflict witnessed cryptocurrencies being used for donations. This goes on to show how cryptocurrencies are already aiding, if not replacing, traditional money. 

Surely, the market sounds promising even in its infancy. But as the market matures, blockchain technology continues to evolve not just from a development perspective, but also in the trading, investment, and regulatory spaces. This will lead to cryptocurrencies gaining even more ground, as the systems become safer and more efficient. Some governments have also been considering placing appropriate rules and regulations. This will ensure tax collection and combat money laundering. 

Please note that this article is an opinion, and does not represent financial advice by IN4X Global.

IN4X Global is a gateway to build a transparent financial economy that is powered by crypto and accessible to all.