One of the largest growing markets in recent years has been the cryptocurrency market. It has seen a phenomenal rise in popularity as well as value. While there are many cryptocurrencies out there now, Bitcoin is the first and most important one. It is one of the most integral parts of the crypto market and has been the reason for its success.
What started with a value of a few cents is now valued at $60k per bitcoin. People who invested early in bitcoin are now reaping its fruits by being bitcoin billionaires. Inspired by their success, thousands of investors across the globe have tried to do the same in an effort to mimic their success. If you too want to be a part of these investors, you can click on this go url to get started on your bitcoin journey.
That being said, there are still many crypto investors out there that think cryptocurrency is too volatile and risky to invest in. While it is certainly true that volatility almost seems like cryptocurrency’s primary nature, it doesn’t mean investing in it is a bad idea. On the contrary, its volatility is what sets it out from other markets and gives its investments true value.
There are various reasons why you should consider investing in crypto even if it’s risky and in this article, we’ll tell you why it’s absolutely worth it. Read the article till the end so you don’t miss out on crucial details.
1. The crypto market is the most versatile market
One of the best things about cryptocurrency is that it has the most versatility out of all commodities. When you buy some cryptocurrency from an exchange, you can easily use it for purchasing real-life commodities! Many online stores have started offering Bitcoin as an alternative payment option and some have even gone as far as putting Ether as a payment option.
Not only that, since cryptocurrency is completely digital in nature, it also means that exchanging it for other assets or commodities is really simple. All you need to do is find a decent platform that does it and put the number of bitcoins you want to exchange for getting other assets like stocks or commodities. This sheer versatility is what makes cryptocurrency such a lucrative option to have.
2. Cryptocurrency is not affected by inflation
Cryptocurrency, unlike all other currencies and commodities in the world, is not affected in the least by inflation. The reason for that is simple – it’s not owned by any government or any central authority that controls its supply. Its supply is regulated by its own mining and user community and that allows it to be unfazed by the real-world economy.
The best example of this was displayed in the Covid-19 pandemic where stock markets crashed and economies failed to have a grip on the situation. The only market that survived the ordeal, and actually even managed to rise throughout the situation, is none other than the cryptocurrency market. That is when many investors recognized cryptocurrency’s true potential and have deemed it as insurance during a failing economy.
3. Your crypto investments are not liable to taxes
As we stated earlier, cryptocurrency is not controlled or regulated by any central authority or government. Many non-crypto investors often quote this to be cryptocurrency’s biggest disadvantage and why it is too risky to invest in it. After all, if something goes wrong, you won’t have the assurance and reliability of the legal forces.
However, the very decentralized nature of cryptocurrency is what makes it so much better than other currencies and stocks. Since they are not controlled by any government, cryptocurrencies are not liable to any taxes that you would get with the stock market. The only thing you will be taxed for is when you convert your bitcoins into cash form and transfer it to your bank account, after which your returns fall under the jurisdiction of a government and are liable to income tax.
4. A variety of options to choose from
Cryptocurrency is not a limited market. Contrary to popular belief, Bitcoin is not the only cryptocurrency (though it is the most important one) but a part of an entire market that has multiple currencies inside it. If you don’t like Bitcoin or how it works, you can simply opt for Ether, the second most valuable cryptocurrency.
No matter which cryptocurrency you invest in, there is always a good chance that you will end up with amazing profits in the long run. Take Dogecoin, for example. The seemingly unknown meme cryptocurrency got a price hike of 12000% just this year. If anyone had even bought $10 worth of dogecoin five years ago, this year they would have had $22,000+ in returns.
If you are concerned for the environment and don’t want to encourage mining operations, you can even opt for cryptocurrencies like Ripple or Cardano. They operate without any mining operations and save a lot on energy costs. In the vast crypto market, there is truly a cryptocurrency for everyone.
5. The crypto market is more streamlined and straightforward than the stock market
There are a lot of aspects to the stock market that need to be kept in mind when you are investing in it. First of all, if you want to make proper stock investments, you would need an investing license to do so. You would also need to be in constant touch with your brokers when you are buying the shares of a company. Also, if you want to cash in your stocks, the process takes from several days to weeks to do so.
Cryptocurrency doesn’t have these problems. Most of the transactions are simple and hassle-free. You simply take your money and exchange it for bitcoin, or vice versa, and you are done. That’s it. The transactions also take a much shorter time than the stock market with most transactions taking only a few minutes of your time.
There are several reasons why investing in crypto is risky but absolutely worth it. If this article was helpful to you, consider following our website for regular updates as it will help us out immensely.