The birth of bitcoin in 2009 opened the doors to investment opportunities in a new type of asset class – cryptocurrency. Many entered the space early.
Intrigued by the huge potential of these new but promising assets, they buy cryptos at cheap prices. Consequently, the bull run of 2017 saw them become millionaires/billionaires. Even those who did not bet much reaped good profits.
Three years later cryptocurrencies remain profitable, and the market is here to stay. You may already be an investor/entrepreneur or perhaps thinking of trying your luck. In both cases, it makes sense to know the benefits of investing in cryptocurrencies.
Cryptocurrency Has A Bright Future
According to a report titled Imagine 2030, published by Deutsche Bank, credit and debit cards may become obsolete. Smartphones and other electronic devices will replace them.
Cryptocurrencies are no longer seen as outcasts but as alternatives to existing monetary systems. Their benefits, such as security, speed, low transaction fees, ease of storage, and relevance to the digital age, are recognized.
Concrete regulatory guidelines will popularize cryptocurrencies, and promote their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030, and nearly 350 million by 2035.
Opportunity to be part of a Growing Community
#IndiaWantsCrypto by WazirX campaign just completed 600 days. It has become a huge movement supporting the adoption of cryptocurrencies and blockchain in India.
Also, the recent Supreme Court verdict lifting the RBI’s crypto banking ban from 2018 has instilled a new rush of confidence among bitcoin and cryptocurrency investors in India.
The 2020 Edelman Trust Barometer Report also points to the increase in people’s faith in cryptocurrencies and blockchain technology. According to the findings, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency/blockchain will be positive.
By becoming a cryptocurrency investor, you stand to be part of a thriving and rapidly growing community.
Increased Income Potential
Diversification is an important rule of investing. Especially, in these times when most properties have suffered huge losses due to the economic hardship caused by the COVID-19 pandemic.
While investing in bitcoin has provided a 26% return since the start of the year, gold has returned 16%. Many other cryptocurrencies have registered triple digit ROI. Stock markets as we all know have posted poor performances. The price of crude oil famously dropped below 0 in the month of April.
Including bitcoin or any other cryptocurrencies in your portfolio can protect the value of your fund in such uncertain global market conditions. This fact also impressed billionaire macro hedge fund manager Paul Tudor Jones when a month ago he announced plans to invest in Bitcoin.
Cryptocurrency Markets Are Available 24X7X365
Unlike conventional markets, cryptocurrency markets operate around the clock, all days of the year without getting tired. That’s because digital currency systems are essentially designed using pieces of software code secured by cryptography.
The operational blueprint does not involve human intervention. So, you are free to trade crypto or invest in digital assets whenever you want. That’s a huge benefit! Cryptocurrency markets are very efficient in that way.
For example, Bitcoin has successfully processed transactions with 99.98% uptime since its inception in 2009.
No Papers or Formalities Required
You can invest in bitcoin or any other cryptocurrency anywhere and anytime without any unnecessary terms and conditions.
Unlike conventional investment options, where a surprisingly high amount of documentation is required to prove yourself as an ‘accredited investor’, crypto-investment is free for everyone. In fact, that was the intended purpose behind the inception of cryptocurrencies. The democratization of finance/money.
For buying any cryptocurrency at WazirX, you need to open an account where you need to provide some basic details including your bank account information. Once they are verified, within a few hours, you are good to go.
Sole Proprietorship Investment
When you buy bitcoin or any cryptocurrency, you become the sole owner of that particular digital asset. The transaction takes place in a peer-to-peer arrangement.
Unlike bonds, mutual funds, stockbrokers, there is no third party ‘managing your investment’ for you. You call the buying and selling shots, whenever you want.
User autonomy is the biggest benefit of cryptocurrency systems that provide incredible opportunities to invest and build a corpus of your principal capital ‘independently’.
These are some of the benefits of investing in cryptocurrencies. We hope you find it useful and convincing enough to start your crypto investment journey.