Bitcoin has been around since 2009. At first, the price of 1BTC was less than $1. By now, Bitcoin is worth around $13,000, and it’s not its all-time high. Fact is, there aren’t a lot of assets with this much potential for growth.
If you are on the edge about buying some cryptocurrency for yourself, these 7 reasons to invest in crypto will convince you.
This article from Forbes suggests that BTC will reach $500,000 by 2030 — a 5000% price boost.
That forecast is doubtful at the least, but even more cautious financial analysts foresee growth. $14,000 to $15,000 is a strong resistance range for Bitcoin, and there is the effect of halving to account for. Bitcoin price improves by one resistance level whenever halving happens. The last took place on May 12, 2020, so it’s reasonable to expect $20,000 by the end of the year.
For example, if you buy Bitcoin while the price hovers around the 10k mark, your potential return in a year will be 2X.
The price of big cryptocurrencies like Bitcoin reaches thousands of dollars. If you think that a large initial investment is a must — don’t worry, it isn’t. In reality, you can invest any amount in most cryptocurrencies.
Crypto is divisible. This means that you can buy a fraction of the coin, instead of purchasing the whole thing from the get-go. For instance, you can buy the 100,000,000th part of Bitcoin. This “bitcoin cent” is called Satoshi and 100,000 of those will set you back roughly $10.
Start with a feasible sum — whatever feels comfortable for you — and learn the ins and outs of crypto investing from there.
A few years ago, you needed to be technologically literate to invest in crypto. This is finally changing and today anybody can buy digital coins. The time when you needed to know programming just to launch a crypto wallet is long gone. We live in the age of convenient mobile applications that let you buy stuff in one tap.
Buying coins today may be easy but you still need to know what to buy. We created an infographic with starter-portfolio templates with 4 most popular beginner crypto assets. The infographic explains why you should consider each coin from the list and suggests two portfolio options with different risk levels.
Liquidity determines how easy it is to sell or buy an asset. With high liquidity, you can complete transactions in seconds, while low liquidity will force you to wait for demand to match your offer. Thankfully, crypto has high liquidity: you can trade in mobile wallets or exchanges and quickly manage dynamic portfolios. Another cool fact — the crypto market is open 24/7, unlike traditional stock markets.
Hith liquidity makes the cryptocurrency investing dynamic. You can quickly purchase and sell assets whenever the price is good. Bottom line: crypto is a flexible asset.
So far, the cryptocurrency market has lacked transparent regulation. The gray regulatory landscape is holding off institutional investors who require a clear legal framework: they operate with huge amounts of money and need clear legislation. Once concrete cryptocurrency-related laws land, large investors will join the game. As a result, the prices of many cryptocurrencies will skyrocket.
This effect will be two-fold. For those who bought-in already, it will result in multifold returns. And for people who missed their chance, it might mean a much higher barrier to entry.
If you want to know what is the legal status of crypto in your country, check out this guide.
Did you know that your bank actually controls your money? It may be hard to believe, but the contract you signed has an item, that basically gives your bank the right to decline service when they see fit. Usually, banks don’t invoke this right, but the fact is clear: the system is flawed at the core.
Unlike banks, which are centralized entities, cryptocurrency is decentralized. Nobody can take away your digital property: it’s physically impossible. If you feel uneasy about the traditional banking system, cryptocurrency is a great alternative. Buy in small first and create an independent portfolio that is not connected with traditional finance.
If banks go crazy one day at least a part of your funds will be protected.
When you open a cryptocurrency wallet, you create an ID in the blockchain. Your account contains a private and a public key — they are like your cryptocurrency credentials. Here is the neat thing: your account is not connected to your real-life ID, especially if you are using a privacy coin like Monero.
Public networks like Bitcoin display all transactions openly, but it’s not a problem. Transaction details show the amount, receiver and sender address, as well as some nitty-gritty technical details. There is no information about real-world personal details.
Emphasis on privacy made cryptocurrencies controversial: if networks disconnect transactions from real-world identities, what’s to stop a crook from using crypto — Bitcoin or any other — in the drug trade, or another illegal operation?
In reality, there are ways to track down the identity of cryptocurrency users. But they require lots of resources and heavy-lifting — nobody is going to bother looking into you without a critical reason.
In comparison with traditional digital payments, most crypto networks are completely private.
If you were on the edge about jumping into crypto, we hope that these 7 reasons to invest cleared up your doubts. Cryptocurrency is a young market and young markets are where the best money-making opportunities lie. Our advice or not, remember to make your own research before buying into anything and only invest what you feel comfortable losing. That way your crypto journey will be profitable and fun.