Cryptocurrency, is it the future currency of the world?

Cryptocurrency Simplified

Five Reasons to Start Investing Today

Introduction: What is Cryptocurrency?

You might have heard the term “cryptocurrency” being used a lot these days. For the sake of this article, let us just call it “crypto” for short.

Simply put, it is a virtual currency that you can use to purchase products and/or services without having to worry about a middleman, such as a bank. For example, when you go to a supermarket, and you pay using your credit card, the bank is actually “giving” money to the supermarket, and not you. This is because when you swipe a credit card, the transaction must go through your bank first for security/verification purposes. Cryptos eliminate the need for a middleman.

We will not cover what the best cryptos are on the market in this article. Cryptos are a volatile form of currency and their price rates fluctuate daily, so we could potentially be doing you a disservice in that regard. Instead, we will be sharing some knowledge with you and provide some insight as to whether you should start looking more into this phenomenon that is taking the world by storm.

Here are the best five reasons to start investing in cryptos today!

First Best Reason: Ease of access

With the support of numerous online wallets available to purchase different types of cryptos, you can handle your cryptos easily and keep track of them without any difficulty. Thanks to the 24/7 crypto markets, the feature to automatically withdraw and deposit money conveniently is feasible.

This reason alone is enough to make anyone switch from the traditional payment method to a more convenient one. Theoretically speaking, you can access your cryptos anywhere and anytime without using banks or credit cards.

Overall, the fact that digital currencies can be obtained, stored, and accessed electronically is just one of the many reasons of why you should start investing in cryptos today.

Is cryptocurrency opening the way for a new financial system?

Second Best Reason: Autonomy

Autonomy is something everyone strives for. Financial autonomy, or financial independence, is no different. Cryptos give people freedom over their money without having to worry about any form of middleman.

This reason is one of the main appeals of cryptos; in an age where privacy is sacred, people want to push for more autonomy in the digital world.

In a nutshell, the level of control you have over your cryptos is vastly superior to the control you have over traditional currencies. This is something you should consider when weighing decisions of whether you want to start experimenting with cryptos today.

Third Best Reason: Financial Revolution

Monotony is life’s enemy. We must embrace change; things such as an office having a computer on every desk is something that we would never have imagined one hundred years ago. We sometimes accept change without even noticing; look around you. The next time you go for a walk, think about the area you are in. It could have been the site of a famous museum back in the 1920s, and you would never have known.

Regarding cryptos, they are dramatically changing the ways people think of money and transactions. Back then, we had a system where people exchanged goods with each other. Slowly over time, coins and bank notes navigated their way into people’s lives. And now, we have digital currencies. This could potentially be the future of money. We should wait and see; only time will tell.

Fourth Best Reason: Risk Versus Reward

Like anything that seems too good to be true, cryptos are very risky, yet rewarding. There are many success stories of people claiming to have purchased cryptos at a low price and are now “crypto millionaires.”

In terms of risk, investing in cryptos means that you are going to have to wait for some time before making a profit. It all depends on the price rate of that crypto changing in your favor. Here is an example using one of the many cryptos found out there, Bitcoin:

  • You buy 1 bitcoin (1 BTC) for, let us say, $30,000.
  • The price rate for 1 BTC becomes $20,000 the following year. If you decide to sell after the price rate drops, you will make a loss on your initial investment of $10,000. You should wait a bit longer.
  • The year after that, the price rate becomes $40,000. If you now decide to sell your single bitcoin, you will make $10,000 in profit.

The fact of the matter is that investing in cryptos is a waiting game. You should start small and grow bigger. Do not take the risk and start big, because you might lose everything.

One more key piece of information is to not invest all your money in cryptos; do not put all your eggs in one basket, as they say. Be smart with your money, and you will be successful in the financial world.

Fifth Best Reason: Simplicity and Liquidity

Cryptos are a simple concept to understand. Instead of having a physical wallet, you have a digital wallet. Instead of having physical money in that wallet, you have digital money.

The crypto market is easy to enter. You do not have to go to a bank and sign forms upon forms just to open an account. There are no formalities or many steps that you must take to start investing in cryptos; you just go and start straight away! Anyone can get into it; it is simple to understand and begin, but difficult to be good at.

What about liquidity? For those who are unaware of the definition, liquidity refers to how easy an asset (which is something valuable to you or a company, such as factory equipment) can be turned into cash. So how does this relate to cryptos? Well, since all the transactions are done online, cryptos are highly liquid by nature. It is very easy to purchase and sell cryptos over the Internet. There are many platforms out there that can accommodate you based on what you are seeking to achieve.

Bitcoin symbols dropping out of a valve

Conclusion: The Bottom Line

And there you have it; those were five reasons to start investing in cryptos. More people are starting to get into it as the days go by because of how lucrative it is. If you are smart with your investments, you will be successful.

Note: Please stay vigilant on the Internet, as there are scams out there that seek to steal your hard-earned money. Let your experience grow gradually. Learn more about cryptos first, then start small and see how you like it.

We hope you had at least one takeaway from this article. More articles will be coming your way in the future.

Thank you very much for reading and have a nice day.