3 Reasons why Cryptocurrency is the Future
The technological revolution of the 21st century has given birth to numerous innovations. Some have been truly ground-breaking and have become widely popular around the globe. One prime example of this is cryptocurrency. It’s a form of digital currency that’s mostly in the form of virtual coins.
Let’s find out what this new concept is and why it has gained traction over the last few years.
Great Option for Investing
There have always been several options when it comes to investment. However, the cutting-edge technology attached with cryptocurrency makes it a very attractive option for investors of all kinds. The speed with which the prices for these digital currencies climb up is extremely rapid.
To put this into perspective, Bitcoin—unarguably the most popular digital coin—was priced at around the $840 mark in January 2014. Fast-forward to today and it’s valued at between $35,000 and $40,000 due to fluctuations.
There are various strategies that you can apply to gain the most out of investing in crypto. Two of the most widely used strategies are:
- Day-to-day trading
- Invest and hold
According to surveys, an estimated 13% of Americans invested in cryptocurrency in the past year while 24% had invested in stocks. This shows there’s a growing population moving towards investing in crypto.
Easy to Use
Low transaction costs, quick transfer, no limitations
As far as ease of usage is concerned, cryptocurrency aligns with the developments of digitization. It has very low transaction costs as it does not have an intermediary institution. Furthermore, there are no withdrawal and deposit fees that banks usually charge for transactions.
The process of transfers is also quick. The owner of the crypto currency has autonomy, and they require no external approval before transferring.
Covers the Shortcomings of Fiat Currency
Possibly fiat currency’s biggest disadvantage is that it’s not linked to any sort of physical reserve. This puts it at risk of losing its value due to inflation. This risk does not exist with cryptocurrencies, as they are completely independent.
However, if you still think they’re risky and do not match your investment appetite, you can choose to invest in precious metals through us! So, whether it’s investing in gold coins or buying silver coins online, we’ve got you covered.
Get in touch with us right away to get started.