Cryptocurrency — The Asset Class Of The Future!
In the past months, cryptocurrencies have been breaking records for total market cap, value, and so much more. Since the meteoric rise of Bitcoin late last year, more people than ever are becoming involved in the cryptocurrency market.
Coins like Ethereum, Litecoin, Monero and many other altcoins have catapulted in value, alongside Bitcoin. And despite recent market fluctuations, cryptocurrencies are poised to become the asset class of the future.
Trading applications are already selling crypto ETFs and allowing users to benefit from investing in Bitcoin and other cryptocurrencies. In this article, we’ll take a look at the cryptocurrency market, and discuss the reasons that blockchain-based cryptocurrencies are the future of investing.
The Basics Of Cryptocurrencies
Cryptocurrencies are digital assets that act as a medium of exchange. Their value is derived from cryptography — each and every digital coin is verified using the blockchain, a public ledger of cryptocurrency transactions.
These currencies can be mined using CPU and/or GPU power, or purchased using fiat currency. Currently, there are hundreds of different cryptocurrencies — but they all share quite a few similarities, and many even use the same underlying technology, such as the Ethereum blockchain.
The Future Of Cryptocurrencies As An Asset Class
Cryptocurrencies have proven their ability to be a strong asset class with unprecedented return on investment (ROI). Despite the recent market downturn, Bitcoin is standing strong at a value of around $9,000 USD — and at this time last year, it was valued at only $1,000 USD.
The same is true of most cryptocurrencies across the board. Though the market is volatile, the trend of cryptocurrencies as an asset class has largely been positive, and crypto holders can likely expect even higher rates of return in the future.
Because there is a large diversity of cryptocurrencies and ETFs crypto assets are strong strategic investments. A large portion of a crypto portfolio can be dedicated to stable currencies with a long history — such as Bitcoin, Ethereum, LiteCoin, and Ripple.
These currencies offer a reasonable return on investment, and are quite safe. Then, smaller portions of a cryptocurrency asset portfolio can be invested in smaller coins. This allows risk to be distributed — even if a smaller altcoin fails, the positive trajectory of larger cryptocurrencies allow investors to recoup their losses.
Cryptocurrencies As Positive Investment Vehicles
Traditional investments offer a relatively low rate of return. The average 10-year CD (Certificate of Deposit) rate at most banks hovers at 3%, if you’re lucky, and savings account rates are incredibly low.
Even stock investments, ETFs, and mutual funds usually do not offer returns greater than 10%, except in rare cases.
Cryptocurrencies, however, have been known to increase in price — sometimes by thousands of percentage points. This incredible rate of return makes them high-risk, but high-reward. With proper asset allocation, cryptocurrency can be a great positive investment vehicle.
Invest In Cryptocurrencies — The Future Is Today!
Whether you’re a crypto novice, or a seasoned blockchain veteran, there has never been a better time to invest in the cryptocurrency market.
The recent market correction provides newcomers with the perfect opportunity to earn great returns on their investment — and start benefiting from the asset class of the future!
