20 Aug
You've heard about cryptocurrency and how it's disrupting the world of finance and investing. But should you put your hard-earned money into this crazy new digital asset class? What are the risks and potential rewards?
We're here to explain why crypto investing makes sense in today's rapidly evolving landscape. Here are the 5 reasons to invest in crypto sooner rather than later.
Cryptocurrency Is the Future of Money
Let's start with the big one—many experts believe cryptocurrency is the future of buying, selling, saving, and transferring money globally. By cutting out intermediaries like banks and governments, crypto runs on decentralized blockchain networks that enable peer-to-peer, borderless transactions.
With crypto, you're in complete control of your funds in a way that's never been possible. No third parties can block, censor, or unnecessarily deduct fees from your transactions. Your money is secured by advanced encryption instead of trusted financial institutions. This is a revolutionary leap for the economic world.
Investment Growth
Speaking of significant investment gains, crypto is arguably the most important modern-day wealth-generation opportunity we've ever seen in our lifetimes. The potential returns outlast anything possible in the regulated stock market or other traditional assets.
For example, a mere $100 investment in Bitcoin in 2010 would be worth over $9 million today. Even getting in as recently as 2019 could have easily 10xed or 20xed your money in just a couple of years as Bitcoin skyrocketed from $5,000 per coin to over $60,000. Insane!
Cutting-Edge Tech
It's not just about making a quick buck, however. Cryptocurrency and blockchain technology represent a shift in finance, economics, and even the internet itself as we know it.
Concepts like decentralized apps (dApps), smart contracts, NFTs, and DeFi (decentralized finance) may need to be clarified now. Still, they could soon power a new generation of services, products, and business models that make today's norms seem archaic. Investing in crypto gives you access to this bleeding-edge innovation from the ground floor up.
Portfolio Diversification
For wise investors who understand the importance of diversification, crypto is a powerful counterweight and hedge against losses in other areas of your portfolio. Unlike stocks, bonds, real estate, or other conventional assets, crypto prices tend to move independently of those markets.
Thanks to its global, decentralized nature, crypto markets trade 24/7 and are largely resistant to factors like recessions, interest rates, or any nation's economic confusion. Many cryptocurrencies even provide staking rewards that offer passive recurring income streams, providing unique risk and income diversification.
Younger Generations Are Now Adopting
Crypto is being taken increasingly seriously as a worthwhile investment because younger generations, like millennials and Gen Z, are the driving force behind adoption and mainstream traction. And as we all know, the future tends to go where the youth leads.
These digital groups instinctively understand and hold onto this new idea of decentralized, peer-to-peer cryptocurrencies that allow them to avoid traditional financial mediators. As this generation begins entering their prime earning and investing years, you can expect even greater demand for crypto.
