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 huge potential of these emerging but promising assets, they bought crypto at low prices. Consequently, the rise of 2017 made them millionaires/billionaires. Even those who didn’t bet much reaped decent profits.
Three years later, cryptocurrencies still remain profitable and the market is here to stay. You may already be an investor/trader, or you may be considering 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 titled 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 alternatives to existing monetary systems. Their advantages, such as security, speed, minimal transaction fees, ease of storage and relevance in the digital age, will be recognised.
Specific regulatory guidelines would promote cryptocurrencies and encourage their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030 and almost 350 million by 2035.
Opportunity to be part of a growing community
WazirX’s #IndiaWantsCrypto campaign recently completed 600 days. This has become a grassroots movement supporting the adoption of cryptocurrencies and blockchain in India.
Also, the recent Supreme Court ruling that overturned the RBI’s 2018 ban on crypto banking has instilled a new surge of confidence among Indian Bitcoin and cryptocurrency investors.
The 2020 Edelman Trust Barometer report also points to people’s growing faith in cryptocurrencies and blockchain technology. According to the findings, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency/blockchain will be positive.
As a cryptocurrency investor, you are part of a thriving and fast-growing community.
Increased earning potential
Diversification is a basic rule of investing. Especially in these times when most of the assets have suffered heavy losses due to economic hardship caused by the COVID-19 pandemic.
While the Bitcoin investment has returned 26% year-to-date, gold has returned 16%. Many other cryptocurrencies have registered triple digit ROI. Stock markets, as we all know, have seen dismal results. Crude oil prices fell below zero in the month of April.
Including Bitcoin or other cryptocurrencies in your portfolio would protect the value of your fund in such uncertain situations in the global market. This fact was also impressed upon billionaire macro hedge fund manager Paul Tudor Jones when he announced his plans to invest in Bitcoin a month ago.
Cryptocurrency markets operate 24X7X365
Unlike regular markets, cryptocurrency markets work around the clock, 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 involve human intervention. So you are free to trade crypto or invest in digital assets whenever you want. This is a great benefit! Cryptocurrency markets are very efficient in this way.
For example, Bitcoin has successfully processed transactions with a 99.98% uptime since its inception in 2009.
No documents or formalities are required
You can invest in Bitcoin or any other cryptocurrency anywhere and anytime without any unnecessary terms and 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 all. In fact, this was the intended purpose behind the creation of cryptocurrencies. The 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 data, including your bank account information. Once they’re checked, within a few hours, you’re good to go.
Sole proprietorship in investments
When you buy Bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction is carried out according to the peer-to-peer scheme.
Unlike bonds, mutual funds, stockbrokers, no third party “manages your investment” for you. You manage the buying and selling whenever you want.
User autonomy is the biggest advantage of cryptocurrency systems, which provides incredible opportunities to invest and build a corpus on your main capital “independently”.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to start your crypto investment journey.