Why you should invest in cryptocurrencies?
Cryptocurrency is the buzzword of the investing world. But what is cryptocurrency? Ever heard of Bitcoin, Dogecoin, Litecoin? Bitcoin is one of the popular cryptocurrencies and many people have started investing in it. They are trending everywhere. But many people are confused about why to invest in cryptocurrency? Despite the loudmouth on the internet, it is important to understand what is it all about.
What is Cryptocurrency?
“Cryptocurrencies are basically digital assets people use as investments and for online purchases. You need to pay real currency to buy coins or tokens of a certain kind of cryptocurrency. You can exchange your money for crypto and use it like real money where it is accepted as a type of payment.”
Cryptocurrency came from the word cryptography which means the art of writing or solving the codes. Each coin of cryptocurrency is a unique line of code and they can’t be copied, which makes them easy to track and identify as they are trading. So, here are few reasons why you should invest in cryptocurrencies.
Cryptocurrencies are not limited to Bitcoin: While we know few names, but there are different types of cryptocurrencies to invest in. So, it is not just 1 crypto that is available to you and thus you can easily take your bets as per your understanding as well as risk appetite.
Trading volume is high: There are many people who have shown that cryptocurrencies serve as a cash alternative. It is the only recent fondness for these digital coins by the investors across the world and this pandemic which has pushed it to scale to new higher market capitalization and hence their valuation. Moreover, this heightened interest is unlikely to fade in the near future.
Easy way to diversify your investment portfolio: It has been always said that keeping all your money in one place is not a good choice. It shares an analogy to even the investment world as one asset can never be rewarding enough. So according to the current situation, you may be pushed to invest in these cryptos to hedge against inflation and even the volatility in the global stock market.
Some cryptos have gained status similar to gold: Experts have acknowledged the fact and are putting Bitcoin at par with gold. Gold as well as Bitcoin work to be an inflation and instability verge. In fact, some of the investors want to invest in Bitcoins to safeguard themselves from the likely devaluation of the dollar in the near future given the large stimulus measures of the US.
Invest in cryptos that are trading at a steep discount: There are many cryptos that trade at a steep discount from their lifetime highs. You need to find which crypto is available at a discounted rate and you can invest in it and leave your money and see it increase.
Cryptocurrency in India
Even as the financial companies are becoming cautious day by day on these digital tokens, for some time the fresh investment came to a halt in India. But it is being asserted that banning cryptocurrency in India shall neither be viable and it will be hard to come by. There are some pieces of advice about the ways to regulate the cryptocurrency market in India and it is suggested that the Indian market should work on ways to curb any fraudulent attempts so that the stakeholders don’t suffer from any illicit act.