Cryptocurrency first entered onto the world stage 2009, bringing with it a new era in digital money systems. While groundbreaking, it was difficult for all but the most technically savvy investors to understand. Fast forward a decade and we now see a large shift has taken place, with Kaspersky reporting that roughly 19% of the world’s population holding some sort of digital currency. In late 2017, the value of one Bitcoin, the most well-known cryptocurrency, surged to more than $19K USD; and, at the end of 2019, the market cap for global cryptocurrencies was an estimated $237 billion USD. We are seeing investors from around the world adopting cryptocurrency in a big way; but, there’s still one segment of investors that is not as interested: Women.
A report out by eToro, a social trading platform in Europe, claims that less than 1 in 10 cryptocurrency investors are women. Men, who already dominate stock market investment, are also the primary investors in the world of cryptocurrencies. Currently, 91.5 percent of users who invest in cryptocurrencies are men.
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Perhaps it’s the nascent state of the current cryptocurrency market, the legacy of original market structure, or a fear of the volatility associated with crypto, but women just aren’t there yet. So where does that leave us? Well, it leaves women with a world of opportunity and a chance to explore whitespace for personal investing that has a great deal to offer, both now and in the future.
Here are 6 reasons why women should consider adding crypto-assets to their financial portfolios:
- The Future is Now — While the cryptocurrency markets have had their ups and downs, the growth of the infrastructure enabling cryptocurrency (blockchain) has never really slowed down. According to many industry experts, the space is now stable, more mature, and ready to move into its next phase.
- The Whales Have Not Started (Really) Investing — A tremendous amount of the global economy is still outside the crypto world. Bigger investors (whales) have yet to fully start investing in cryptocurrency — but it’s coming. This will ultimately lead to the market cap of cryptocurrency rising to unprecedented heights. Once the big (corporate) investors make their way into the game, good multipliers will be de facto for early participants; higher stakes will raise the overall value of the cryptocurrency market and the portfolios of those asset holders.
- The Rise of the Stable Coin — Cryptocurrencies are changing: Asset-based cryptos are paving the way with low costs, global reach, and lighting fast transaction speeds — all of which are a huge potential benefit to the cryptocurrency holders. Think Facebook announcing Libra or centralized variants of the stablecoin business models that are becoming widespread. One such project is LODE, which features dual tokens (LODE Tokens and AGX Coins) backed by investment-grade silver, that works as a complete monetary system. The strength of stablecoins is their attractiveness as a means of payment. Stablecoins allow seamless payments that can be embedded into digital applications thanks to their open architecture, as opposed to the proprietary legacy systems of banks. For crypto holders, this means the ability to save, send, and spend their assets as they see fit.
- Potential for High Profitability — While we’ve not (yet) repeated the Bitcoin moonshot of 2017, there remains the opportunity to see excellent returns in the cryptocurrency space. Many of the ALT coins such as EOS and XRP hold market caps of over $2 billion, placing them on par with a blue-chip investment. The primary advice to offer here is to do your homework. Take time to understand where the market is currently and where it’s potentially going from here. Don’t be afraid to explore the ALT coins along with the top 5 cryptos. Smaller, lesser-known coins have real potential for great returns. Real investing is persistent and it takes having knowledge about the projects you invest in and pursuing them with confidence. CoinMarketCap is a great place to start.
- Diversification and a Hedge Against Economic Crises — Global markets are showing major signs of instability, with hyperinflation of fiat currencies becoming a real concern. Take Venezuela, for example. It has been in a major crisis for some time. Economically, the country is now trying to save itself with the help of a cryptocurrency called the “Petro”. As the name suggests, the cryptocurrency is to be backed by oil reserves. Nicolas Maduro, Venezuela’s head of state and self-prescribed crypto fan, is trying to do something to hedge against the high inflation of the national currency and its loss in value of over 1000% in the past 18 months. While not all governments embrace the idea of investment in cryptocurrencies, holding them privately now will help you hedge against a loss in your portfolio’s value if your country’s currency takes a nosedive.
- You Set the Pace of Investment — No one can tell for sure what the price of a cryptocurrency will be in the future, so assuming you followed the advice of point 4, you can be confident about whatever cryptocurrency you have decided to invest in. Start off buying a small amount to set your foundations. Get a feel for the market and delve into the projects associated with each coin. As long as you have picked a good coin or coins, it is better to get in now and hold for the long term. Once you are more comfortable you can choose to go with bigger buys, if and when that feels right to you.
Final note: Of course, as with all investments, investment in cryptocurrency comes with inherent risk and is suited only for investors who have the desired risk appetite.