Over the years, we have seen cryptocurrencies like Bitcoin and Ethereum grow exceptionally. This brought huge returns to a vast number of people. Hence, it turned out to be one of the profitable investment instruments.
But still, there are people who are unaware of the whole cryptocurrency thing or have a fear of investing in it.
If you, too, belong to the same category of people, I am here to give you 3 reasons why anyone should invest in cryptocurrencies.
So here we go:
4 Reasons Boomers Should Invest In Cryptocurrencies
1. High and Quick Returns
One of the best parts of cryptocurrencies is that it gives you high returns over a shorter duration. Compared to other assets like Stocks, Cryptocurrencies can grow at a rapid speed. Also, unlike most other assets, Cryptocurrencies are known to generate high returns quickly.
Bitcoin was the first cryptocurrency that launched back in 2009. According to Coinbase, in August 2012, Bitcoin was valued at $112+. And at the time of writing this article in Feb 2022, Bitcoin is priced at $39,279.10. And the price of the coin is continuously moving forward.
But out of all the coins, Bitcoin didn’t perform what the market expected, and there are plenty of reasons for that. But there are other coins that did perform well.
Also, newer coins are coming to the crypto market from time to time which has seen huge growth over a short period of time. So as a beginner crypto investor, you can also start investing in newer crypto coins and enjoy high returns in a quick time.
2. It’s Easy to Get Started
Getting started with cryptocurrency is extremely easy. Although, the technology behind cryptocurrency can be extremely complicated to understand. But as a regular investor, you wouldn’t really find it too hard to connect with crypto technology.
But before you think of investing in crypto, you should take some basic rules into consideration. For instance, crypto should only represent a small fraction of your investment portfolio, especially when you are just beginning to start investing in crypto.
Secondly, there are thousands of coins to choose from. So you must do your research about your different coins and see which excites you. But even the most promising coins did fail in the market and disappeared. So keep in mind that you are taking the risk of investing in newer coins.
To make a safe bet, you can choose a cryptocurrency like Bitcoin or Ethereum. These two are well established coins, and the value of these coins has been going up over the years.
Once you have figured out which coin you wish to invest in and keep your profit and risk ratio in mind, you can easily sign up on a trusted crypto exchange. There are way too many crypto exchanges available.
But make sure to select an exchange that offers you a lower trading fee. Along with that, it allows you to buy crypto using your local or fiat currencies like USD, INR, AUD, and others. Some of such exchanges are Binance, Kraken, Coinbase, and many others.
After creating an account, deposit a few dollars in it and familiarize yourself with the trading interface. There are many exchanges that make it super easy to buy or sell crypto.
Along with that, you will also need to create a crypto wallet which will be either stored on your desktop, mobile, or a storage hardware device. Or you can store your crypto assets on a cloud. My recommendation for a crypto wallet would be Trust Wallet.
3. Diversify Your Portfolio
Without any doubt, cryptocurrency is extremely volatile. Sometimes, the 30 days gains or losses can exceed 100% testament to that. This means that investing in crypto is a high risk, but it also brings you high profits.
But overall, crypto still stands out to be a good investment instrument, and it can balance out the overall portfolio of an investor.
Hence, it is recommended that crypto should only be a small part of your overall investment strategy. But it definitely stands out to be a unique opportunity to diversify your portfolio.
By investing in crypto, you can keep yourself safe from traditional market behaviors. This means, even if the traditional market is not performing well and your investment value is going down.
It will not really affect your crypto assets value as it exists in a different environment. As a result, your cryptocurrency assets are protected against inflation, market downtrend, and more.
4. Future Monetary Systems Are Being Built On Cryptocurrencies
In the future, cryptocurrency is expected to replace traditional money. Also, all over the world, people are adopting crypto rapidly. There are financial companies that made a partnership with cryptocurrency companies and brought blockchain to their portfolio.
One such example is Mastercard adding a crypto consulting service in the latest effort to boost cryptocurrency adoption. Similarly, we have seen Visa and PayPal adopting crypto.
There are worldwide banks that are adopting blockchain and crypto technologies to make faster and quicker payments.
All of these are only helping to the adoption of cryptocurrencies. As a result, the value of cryptocurrencies is going to go up only over the upcoming years. Hence, it is one of the best investment options in today’s time.
So those were a few reasons why anyone should invest in cryptocurrencies. Investing in cryptocurrencies can bring you high profits. But it is also highly risky, so make sure to do proper research and invest the money you can afford to lose. Also, for any other suggestions, feel free to drop a comment below.