The entire world knows about cryptocurrency by now. You may find many of your friends or relatives to talk about crypto. The crypto industry can be tricky if you don’t know everything about it.
That’s why some cryptocurrencies like Ethereum and Bitcoin have acquired immense credibility in the market. Other digital cryptocurrencies like Cardano and Dogecoin help you procure profitable returns.
That’s why this article will focus on the top five reasons that make it worthwhile to invest in cryptocurrency.
1. Control Over Your Assets
One of the primary reasons to invest in cryptocurrency is that you are in control of your assets. That means no one can tell you what to do with your money or how to spend it.
You can also hold onto your cryptocurrency without worrying about a third party freezing or losing your funds. This control over the crypto assets will help you earn potentially high returns. Bitcoin is an example of how widespread adoption can ensure a significant rise in cryptocurrency’s price.
When starting with crypto investments, choosing the right cryptocurrency exchange platform, like KuCoin, is always essential to ensure your assets’ security. KuCoin offers the best customer service to help you with your investment journey.
2. Deflationary Assets
Many people focus on finding assets that they will appreciate when it comes to investing. This is understandable, as who doesn’t want their investment to grow?
However, there are also reasons to invest in assets that may decrease value – deflationary assets. One reason to invest in deflationary assets is that they tend to be more scarce than inflationary ones. For example, only 21 million Bitcoin will ever be mined. This scarcity can lead to increased demand and, as a result, higher prices.
The value of fiat currencies gets diluted over time but won’t have the same impact on cryptocurrency. That’s because crypto has a supply cap and is decentralized. Plus, no bank or government can make changes or manipulate crypto willingly. When compared to the rate at which the value of fiat currency reduces over time, cryptocurrencies have the opportunity to earn more returns.
However, it doesn’t mean that cryptocurrencies are inflation-free. If more and more crypto gets mined, their value may fall. But there are steps and actions in place to handle this. Bitcoin is a good example. Every four years, the Bitcoin mining rate gets reduced by half. It makes the inflation rate negligible, and the scarcity remains intact.
3. Potential For Higher Returns
Cryptocurrencies have the potential to generate higher returns than traditional investments. This is because they are still in the early stages of development and growth. For example, the Bitcoin price has seen a return of over 900% in the last year alone!
Investing in cryptocurrency now could help you secure a position when they become more mainstream, and their prices continue to rise. WIthin every four years, the price of cryptocurrencies increases significantly.
4. Transparent And Secure
The most crucial characteristic of cryptocurrency is that it is decentralized.
Cryptocurrency is not subject to government or financial institution control. This means that no one can manipulate the currency supply and inflate prices by printing more money.
Investors are also attracted to cryptocurrency because transactions are secure and anonymous. When you make a transaction with cryptocurrency, it is recorded on a public ledger called a blockchain. This record cannot be altered, so it is incredibly transparent.
At the same time, your personal information is not attached to the transaction, so it remains completely anonymous.
5. Flexible and Independent Trading
Cryptocurrency trading is not subject to government regulations like traditional markets, which means it can be traded 24/hours a day, seven days a week.
This makes it an attractive investment for people who want more control over their finances. The independent trade experience will enable you to get the most out of crypto.
The Bottom Line
Cryptocurrency is still in its early stages but has shown immense promise as an investment. There are many reasons to believe that cryptocurrency will continue to grow in popularity and value.
If you’re considering investing in cryptocurrency, above are some reasons it may be a good idea. Visit crypto news site can be a good way to start your journey.