Why Should You Invest In Cryptocurrency?
With the rising popularity over the years in regards to cryptocurrencies, many people tend to wonder if investing in cryptocurrencies is the right fit for them. Common concerns raised among the community falls around the volatility of the market as well as comparisons to other — more traditional forms of investments. Cryptocurrency investing, just like other forms of traditional investing isn’t a one size fits all. The character of each individual will be a defining point on whether crypto is what’s right for them or not.
Despite the critics, the skyrocketing popularity of bitcoin and how it’s price growth has propelled it into the spotlight has really shown that trading cryptocurrency will become a widespread trend. Along with the constantly growing community of crypto enthusiasts, are we about to witness the change in modern economy and financing as we know it? Are we witnessing the rise of a new era that will plunge us into the ultimate realm of the digital age?
It definitely seems like it. But coming back to the question “Is cryptocurrency trading right for YOU?” May it be your rising interest in crypto trading or a lingering feeling of FOMO, whatever it may be, we’re here to break down the core components of why everyone should consider trading Cryptocurrency.
A Trend bound to fail or the catalyst to bring us to the ultimate digital age?
Since the day of its creation in 2010, Bitcoin became the world’s first digital asset to generate an entire ecosystem of cryptocurrencies. For a period of time, it grew an underground following of investors who showed keen interest in its future and it’s potential to replace the physical monetary system while simultaneously having traditional investors watching curiously for its development.
While the likelihood of cryptocurrencies integrating into being the ultimate mode of transactions, it is still a fairly new and volatile space. During the growth and adoption of crypto, many people launched ICOs (Initial Coin Offerings, or the offering of new stock) without any proper control or regulation. In this period of time, Bitcoin led the change to a valuation of approximately $20,000 per coin in 2017 at its peak to have a steady decline over the course of 2018 and resided in a range between $3,500 to $4,000 for quite some time.
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After witnessing the astronomic rise and fall of Bitcoin’s value, many who considered being part of the community became wary about investing in cryptocurrencies. That being said, recent activity has caused Bitcoin’s value to rise significantly — thus attracting investors once more.
For the past few years, the crypto market has matured significantly, with more oversight and regulations put in place by both institutions and government agencies. As a result of these oversights, and more support in the industry, people are now seeking ways to reduce their risk while still collecting a profitable ROI.
What does this tell us about the Crypto Market today? Though cryptocurrencies have a long and weary history, we cannot look away from the fact that over time, this form of digital currency and investment asset has shown a significant rise and popularity, not only to the average man hoping to cash out but to industries and investors who genuinely see the potential of crypto bringing us into a new digital age.
How Blockchain Plays an active and crucial Role
Although Blockchain was built for the purpose and application for anonymous transactions, it was also built on the principle of accountability and transparency. This means that the details of financial operations and transactions that are stored in the Blockchain can be viewed when necessary, with user identification protection. This feature of blockchain is highly valuable — specifically for public transactions. Communities can reap the benefits from a clear system of asset allocation, where blockchain not only tackles a financial issue but allows us to handle other information as well. The integral role that blockchain plays in the use case of crypto allows it to have the potential to not only be more convenient than fiat currencies, but it also makes it a safer and faster way of payment and transfer.
You’re in Control
The key to Bitcoin’s success is the superiority of the Blockchain Technology. With such advanced technology created, digital transactions can be made much faster and safer. Blockchain encrypts data, and these blocks containing data, are stored in a decentralised manner, which means that not only is there no singular control over these blocks, but it also means that the information cannot be deleted or forged.
This is a huge leap from banks, where a majority of people place their funds can be robbed or simply closed, after claiming bankruptcy. When you invest in cryptocurrency, your money stays yours as long as you want it to. The most important point to this would be to make sure that you work with reliable exchange platforms such as Tradence and only use official crypto wallets with multi-layer protection.
Fluctuation and Volatility, Does it really matter?
Contrary to popular belief and sensationalised market swing headlines put forth by the press, the reality is that standard markets typically only fluctuate by 1 or 2% on a daily basis. The average investor’s portfolio rarely gets affected by these fluctuations and most personal investors think about the market’s long term prospects.
For those who aren’t very familiar with the crypto market, it’s a close resemblance to the standard market… if the standard market were on steroids. Put into consideration these statistics:
On June 25, 2019, Ether’s price was $335.10. By July 16, 2019, it’s value dropped by 40% making it only worth $205.86.
On February 7, 2019, Bitcoin’s worth was $3451.55. By July 9, 2019, it had a 3.6x growth making its value worth $12,647,99.
The mindset that people have to have when considering entering the crypto market is a completely different belief market. To be successful with crypto, people can’t just read on it as an investment but rather also a belief system. That will allow users to develop new tolerance levels for “very low” lows and the potential for “very high” highs.
It is also important to remember that your investments in crypto shouldn’t be where you get your emergency funds from, and it shouldn’t be treated as an equivalent. Knowing this, and the built up of tolerance for the potentially rocky journey, the fluctuation and volatility will seem like a passing tide in the long run.
Overview
With everything we had to say about the potential that cryptocurrency has for the future of finance, it all boils down to whether or not you personally feel that it’s the right type of investment for you. When you’re ready to enter the world of cryptocurrency trading, make sure you sign up with us on tradence.io and we’ll be sure to help you with all the ins and outs.
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