The birth of bitcoin in 2009 opened the door to investment opportunities in a whole new kind of asset class – cryptocurrency. Many entered space very early.
Intrigued by the immense potential of these nascent but promising assets, they bought cryptos at a low price. Therefore, the bull run of 2017 saw them become millionaires / billionaires. Even those who didn’t bet a lot raked in decent profits.
Three years later, cryptocurrencies are still profitable and the market is here to stay. Maybe you are already an investor / trader or maybe considering giving it a shot. Either way, it makes sense to know the benefits of investing in cryptocurrencies.
Cryptocurrency has a bright future
According to a report called Imagine 2030, released by Deutsche Bank, credit and debit cards will become obsolete. Smartphones and other electronic devices will replace them.
Cryptocurrencies will no longer be seen as outcasts but as alternatives to existing monetary systems. Their advantages, such as security, speed, minimal transaction costs, ease of storage and relevance in the digital age, will be recognized.
Concrete regulatory guidelines would popularize cryptocurrencies and boost their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030 and nearly 350 million by 2035.
Opportunity to be part of a growing community
#IndiaWantsCrypto by WazirX recently completed 600 days campaign. It has become a massive movement supporting the adoption of cryptocurrencies and blockchain in India.
Additionally, the recent Supreme Court ruling overturning RBI’s cryptocurrency ban from 2018 has injected a new boost of confidence among Indian bitcoin and cryptocurrency investors.
The 2020 Edelman Trust Barometer report also highlights people’s growing confidence in cryptocurrencies and blockchain technology. According to the results, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency / blockchain will be positive.
By being a cryptocurrency investor, you are part of a thriving and rapidly growing community.
Increased profit potential
Diversification is an essential rule of thumb when it comes to investing. Especially, during these times when the majority of assets suffered heavy losses due to the economic hardship spurred by the COVID-19 pandemic.
While investing in bitcoin has returned 26% year-to-date, gold has returned 16%. Many other cryptocurrencies have seen triple-digit ROI. As we all know, the stock markets have performed dismally. Crude oil prices fell noticeably below zero in April.
Including bitcoin or any other cryptocurrency in your wallet would protect the value of your fund in such uncertain global market situations. This fact was also impressed by billionaire macro hedge fund manager Paul Tudor Jones when he announced his intention to invest in Bitcoin a month ago.
Cryptocurrency Markets are on 24X7X365
Unlike regular markets, cryptocurrency markets operate 24 hours a day, every day of the year without fatigue. This is because digital currency systems are essentially designed using pieces of software code secured by cryptography.
The operational plan does not involve human interference. So, you are free to trade cryptos or invest in digital assets whenever you want. This is a great advantage! Cryptocurrency markets are very efficient this way.
For example, Bitcoin has successfully processed transactions with 99.98% uptime since its inception in 2009.
No paperwork or formality required
You can invest in bitcoin or any other cryptocurrency anywhere and anytime without any unnecessary conditions.
Unlike conventional investment options, where an absurdly high amount of documentation is required to prove that you are an “accredited investor,” crypto investing is free for everyone. In fact, that was the goal behind the creation of cryptocurrencies. Democratization of finance / money.
To buy any cryptocurrency on WazirX, you need to open an account for which you just need to provide some basic information including your bank account information. Once they are verified, within hours you are good to go.
Unique property in the investment
When you buy bitcoins or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction takes place under a peer-to-peer agreement.
Unlike bonds, mutual funds, and stock brokers, no third party “manages your investment” for you. You call the buying and selling shots, when you want them.
User autonomy is the biggest advantage of cryptocurrency systems which offer incredible opportunities to invest and build a corpus of your principal capital “independently”.
These are some of the benefits of investing in cryptocurrencies. We hope you find them useful and compelling enough to start your crypto investing journey.