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Investing in cryptocurrency means investing in a growing industry.
Cryptocurrencies have been on the radar for years: the first big one was Bitcoin, conceived in 2009 by Satoshi Nakamoto, but only recently has the world started to take notice of digital currencies. Since Bitcoin’s conception, the underlying tech has grown and evolved, bringing forth dozens of new cryptocurrencies and other blockchain-based applications.
Today, cryptocurrency is at the forefront of emerging financial technologies and is quickly becoming mainstream; the rapid development of blockchain technology is poised to reshape the global financial landscape. As such, it is difficult—but important—to keep up with the latest developments in the cryptocurrency world.
We aim to break it down as simply as possible for you and lay out some pros, cons, and pressing questions surrounding cryptocurrency investments.
To start, here are five reasons why you might want to hop on the crypto bandwagon:
1. Cryptocurrency is Accepted Globally
Cryptocurrency has become a global phenomenon: a means of payment and storing value that is all the rage in vast swaths of the world, from Africa to Asia. Bitcoin, Ethereum, Litecoin, Ripple, and Altcoins are rapidly gaining acceptance as payment for goods and services. While local currency is still preferred for many purchases, many large businesses are beginning to accept payment in cryptocurrencies.
2. Cryptocurrency is a valuable asset.
Cryptocurrency is becoming increasingly valuable as time goes on. The cryptocurrency market is growing at an unprecedented rate as the price of Bitcoin, Ethereum, and other cryptocurrencies continue to rise. Cryptocurrencies are also gaining traction among individual investors, and many have made upwards of millions of dollars in profits.
3. Cryptocurrency diversifies your portfolio
When it comes to investing, we all know how important diversifying your portfolio is. Diversification is a key part of investing, and investing in cryptocurrency introduces a unique opportunity to expand your portfolio. Although cryptocurrencies and blockchain technology are still in their early stages, there’s no doubt surrounding the potential they hold to revolutionize the financial and investment sector.
4. Investing in crypto means investing in a growing industry.
Cryptocurrencies are everywhere and for good reason. They are often touted as the solution to the current financial system’s flawed reliance on foreign nations, monopolies, and censorship. Since they are decentralized, they are free of governmental oversight and are not controlled by a few wealthy individuals. As a result, they are more accessible to the average person interested in making money, and can easily be purchased and transferred.
5. Cryptocurrency is easy to buy.
How does one invest in the cryptocurrency market? Mostly, with the help of a cryptocurrency exchange. These are the platforms that convert cryptocurrencies into fiat currency and back again.
Buying cryptocurrency is actually a simple process, but one that can feel intimidating to some. Midas.Investments aims to simplify the crypto experience to help users make money. The platform helps you safely, securely, and successfully purchase cryptocurrency, whether it’s Bitcoin, Ethereum, or another coin.
Is Cryptocurrency Safe?
Cryptocurrency is one of the most talked-about innovations in the financial markets. This new type of investment attracts huge amounts of attention, as the technology has the potential to disrupt traditional markets. But this mania may also be a bit dangerous.
Investment experts and regulators warn that the new market is not as mature as other types of investments. It may present a higher risk of danger to investors than other types of financial instruments. Some people argue that cryptocurrency is a bubble that will eventually burst; others argue that it is the future of money. Well, the truth of the matter is that we don’t really know what the future of crypto will look like for sure.
Why Should You Invest In Cryptocurrency?
Cryptocurrency is an innovative technology. It is an alternative to traditional financial services and a response to the limitations of the existing financial system. The advantages of cryptocurrency include a decentralized and transparent form of payment, and the ability to send and receive money across borders instantly with a low transaction fee.
As a digital and decentralized system, cryptocurrency can be transferred sans third-party involvement. It’s stored electronically on the internet and can be sent to anyone in the world without the need of a government, bank, or financial institution.
Finally, cryptocurrency is a potential tool for financial inclusion. The people in the world need to have access to financial services, especially in emerging markets. Cryptocurrency is a great way to solve this problem. It could be used to empower people across the globe who are unbanked.
Why Avoid Crytocurrency?
Indeed, cryptocurrency has become a worldwide phenomenon. While many people are excited about its potential, they also know that it is risky.
So, are there risks to investing in cryptocurrency? Yes. Here are the top three risks of buying cryptocurrency:
1. Risk of losing your investment.
Cryptocurrency is volatile and prone to price swings. This can be very unsettling to investors used to traditional markets, where a small shift in the share price can be attributed to the weather, or the economy, or the Chinese New Year.
2. Risk of being hacked.
Cryptocurrency online wallets are not really wallets at all. They are just big storage containers for your digital assets. This means that if you want to store a large amount of cryptocurrency, you need to use a secure hardware wallet.
3. Risk of fraud.
Cryptocurrency is not regulated, meaning there is no governing body in charge of preventing fraud. This naturally increases the risk of fraud. You simply do not know who is behind the account you are dealing with.
Check our article How to manage risks in DeFi
What’s the best cryptocurrency to buy in 2021?
Some of the best coins to get in on, or the best ecosystems to break into, including the following:
BTC: The OG cryptocurrency, Bitcoin’s popularity continues to grow at a steady pace, and many are taking the plunge into cryptocurrency by starting with this coin as an investment. In March 2021, the price of Bitcoin rose to more than 60k, making up 45% of the total cryptocurrency market.
ETH: Ethereums promising future as a trustless, decentralized platform for app developers (think smart contracts) has resulted in a high price boom. As of May 2021, Ethereum’s market cap was over $300 billion, a figure that trails only Bitcoin.
DeFi Tokens: Defi Tokens such as Aave, Compound, and Unsiwap, are tokens that are created and granted to users on the Ethereum blockchain. These tokens, sometimes called dApps, represent the value of assets, such as crypto-assets, that are managed and issued by DeFi platforms.
Solana: Solana is a global network for the processing of business-to-business transactions, powered by the Ethereum blockchain. The network is highly decentralized and offers low transaction fees, making it a worthwhile ecosystem to check out.
Polkadot: Polkadot is a blockchain platform forked from Ethereum that leverages a proof-of-stake consensus algorithm. The platform achieves scalability through sharding (a technology that enables a blockchain to scale to support large volumes of transactions while maintaining the security of the consensus algorithm).
It’s hard to avoid hearing about cryptocurrency right now. Cryptocurrency investing has skyrocketed in popularity over the last few years, and the demand for investment in cryptocurrencies has created a wide variety of investment opportunities.
Together with their relative newness, the decentralized nature of cryptocurrencies has made them incredibly popular with investors and speculators. The main reason for all the attention is the fact that cryptocurrency is by far the fastest-growing asset class of all time.
Over the last decade or so, the cryptocurrency market has grown exponentially, with new applications and coins entering the market.
Does this mean that you should take part?
Why is cryptocurrency the best way to invest?
Cryptocurrency has become a major investment driver over the last few years. But while it is the latest big thing in finance, the majority of people either know nothing about it or don’t understand it. Still, it goes without saying that cryptocurrency might be one of the most exciting investment trends of our time. That said, cryptocurrency comes with its own set of risks—as do all investments.
Despite the risks, the future of crypto looks promising. And, with careful research into the cryptocurrency market, investing in coins might end up being more than worth your while. Given the recent boom in the value of Bitcoin and other cryptocurrencies, it’s hard to miss the vast potential in the new world of investing.
Plus, what if we told you that cryptocurrency is an investment worth dabbling into this year and might be better than the stock market, real estate, bonds, and other traditional investments?
There’s only one way to find out.