Did you know 11% of adult Americans invest in cryptocurrency? Experts predict that market to grow as more people become familiar with it.
Right now, investing in cryptocurrency can be a bit mysterious. It’s not as complicated as you think.
What is cryptocurrency? Do you want to learn more about crypto investments?
Read on for the top six reasons you should invest in this growing market.
1. Portfolio Diversification
Any financial advisor will tell you that you need a diverse portfolio. It’s one of the best investing tips.
What does that mean? It means your investments should spread across different sectors.
Your portfolio should also contain a mixture of high-risk and low-risk investments. Precious metals are a low-risk investment that stabilizes your portfolio from market turmoil. Crypto is the opposite.
Cryptocurrency investment can yield short-term gains because it’s so high risk and volatile.
2. Transparency
One of the advantages of cryptocurrency is that you don’t leave a paper trail. Unlike fiat currency regulated by a central government, crypto operates outside of tax codes.
Therefore, you can move large sums of money without flagging a regulatory agency. While many people exploring crypto for beginners assume this means illegal behavior, that’s not the case. It means you want to buy or sell or transfer without using a bank or credit agency as a middle man.
3. It’s a Growing Market
Back in 2009, a mysterious figure named Satoshi Nakamoto started the first blockchain for the world’s first cryptocurrency. Early adopters traded it even though it had little to no worth. Through the years, different coins emerged, and as interest grew, so did the price.
The crypto market is still like the wild west. Traditional investors have not yet figured out how to manipulate it, and government bodies have not yet learned how to regulate it.
The sooner you learn how to invest in cryptocurrency, the more likely you are to see returns.
4. Liquidity
The cryptocurrency market exists worldwide and operates all day. Other markets close and stop trading every day. Many banks and credit agencies have business hours.
An investment in this market means you can cashout crypto instantly. Your investment is completely liquid.
5. Pandemic Market Woes
Most of us assumed we’d be out of the woods with COVID-19 after the vaccine launch. Right now, we’re still experiencing the extreme economic ramifications of the pandemic.
Supply chain slowdowns and a lack of labor are causing major market disruptions. Crypto investment is a way to avoid these traditional market turndowns.
6. Investing in Cryptocurrency is Easy
Investing in cryptocurrency is so easy. Unlike real estate or ETFs, you don’t need a lot of money to start. You can make an initial investment of $100.
Once you decide to invest, all that’s required is an account with a crypto trading platform. Once you open your account, you can buy, sell, and trade as much or as little as you like.
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