The birth of bitcoin in 2009 opened the door to investing in a completely new type of asset class – cryptocurrency. It entered space very early.
Intrigued by the huge potential of this young but promising asset, they bought cryptocurrencies at cheap prices. Accordingly, in 2017, they became millionaires / billionaires. Even those who did not invest much made a decent income.
Three years later, cryptocurrencies still remain profitable, and the market is here to stay. Maybe you are already an investor / trader or maybe you are thinking of trying your luck. In both cases, it makes sense to know the benefits of investing in cryptocurrencies.
Cryptocurrency has a bright future
According to a report called Imagine 2030, published 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 an alternative to existing monetary systems. Their advantages, such as security, speed, minimum transaction fees, ease of storage and relevance in the digital age, will be recognized.
Specific regulatory guidelines would popularize cryptocurrencies and encourage their adoption. The report predicts that by 2030 there will be 200 million users of cryptocurrency wallets, and by 2035 almost 350 million.
An opportunity to be part of a growing community
WazirX’s #IndiaWantsCrypto the campaign was recently completed in 600 days. It has become a huge movement supporting the adoption of cryptocurrencies and blockchains in India.
Also, a recent Supreme Court ruling overturning RBI’s 2018 ban on crypto banking has instilled a new burst of confidence among Indian investors in bitcoin and cryptocurrencies.
The Edelman Trust Barometer report for 2020 also points to people’s growing faith in cryptocurrencies and blockchain technology. According to the findings, 73% of Indians believe in cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency / blockchain will be positive.
Because you are an investor in cryptocurrencies, you become part of a successful and fast-growing community.
Increased profit potential
Diversification is an essential rule for investment. Especially in these times when most assets have suffered heavy losses due to the economic hardships caused by the COVID-19 pandemic.
While investing in bitcoin has yielded a return of 26% since the beginning of the year to date, gold has returned 16%. Many other cryptocurrencies have registered three-digit ROI. Stock markets as we all know had poor results. Crude oil prices fell below 0 in April.
Including bitcoin or any other cryptocurrency in your portfolio would protect the value of your fund in such uncertain global market situations. This fact was impressed by billionaire, macro hedge fund manager Paul Tudor Jones when he announced plans to invest in Bitcoin a month ago.
Cryptocurrency markets are included 24X7X365
Unlike conventional markets, cryptocurrency markets operate 24 hours a day, all days of the year without fatigue. This is because digital currency systems are essentially designed using pieces of software code that are protected by cryptography.
The operational plan does not include human interference. So, you are free to trade cryptocurrencies or invest in digital assets whenever you want. That’s a big benefit! Cryptocurrency markets are thus very efficient.
For example, Bitcoin has successfully processed transactions with 99.98% uptime since its inception in 2009.
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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 large amount of documentation is required to prove yourself as an ‘accredited investor’, crypto-investing is free for everyone. In fact, that was the goal behind the emergence of cryptocurrencies. Democratization of finance / money.
To purchase any cryptocurrency at WazirX, you need to open an account for which you only need to provide some basic information including bank account information. Once confirmed, you can leave within a few hours.
Exclusive ownership of the investment
When you buy bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction takes place in an equal arrangement.
Unlike bonds, mutual funds, stockbrokers, no third party ‘manages your investment’ for you. You decide to buy and sell whenever you want.
User autonomy is the biggest advantage of a cryptocurrency system that provides incredible opportunities to invest and build corpus on your core capital ‘independently’.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and compelling enough to begin your journey of investing in cryptocurrencies.