A lot of people who want to invest in cryptocurrencies would want to know the advantages or opportunities associated with cryptocurrency investments. Cryptocurrencies are undoubtedly one of the hottest investment opportunities in recent times and the space keeps growing as lots of people continue to flock in. Whether you should invest in cryptocurrencies remains a question that everyone must answer by him/her self.
You can check out our what are cryptocurrencies guide.
Cryptocurrencies are digital or virtual assets on the blockchain that make use of cryptography to perform transactions. They are not issued by any government and are not reliant on any third party such as the government or banks to exist. Cryptocurrencies have been around for quite some time and have really gained wide adoption in a short frame of time.
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The first cryptocurrency to be created was bitcoin which is the largest cryptocurrency by market capitalization up till this day. Bitcoin was created as an open source network for fast peer to peer transactions. Ethereum was formed few years after the creation of bitcoin and has since gained very wide adoption. Ethereum in fact helped in the major breakthrough seen in the crypto space recently.
SHOULD I INVEST IN CRYPTOCURRENCIES?
Investing in cryptocurrencies is very lucrative and has huge chances of returning high profits. It has been one of the most lucrative investments in the past decade and continues to grow regardless of government interference. Lots of persons have gained financial freedom by investing in cryptocurrencies alone. A lot of individuals have even been known to quit their jobs to take up crypto trading as a source of livelihood.
Regardless of how lucrative cryptocurrency investments can be, investors are advised to be very careful and do a proper research before investing in highly volatile assets like cryptocurrencies. Investing in cryptocurencies is risky due to the volatility associated with crypto assets and also due to the possibility of falling into the hands of fraudulent developers. Around $2.8 billion was lost to rug pulls in 2021 alone which is why investors must be careful when investing in cryptocurrencies.
WHY SHOULD I INVEST IN CRYPTOCURRENCIES?
There are several reasons why you may want to start investing in cryptocurrencies. For the most part of it, investing in cryptocurrencies can make one very rich but it doesn’t just happen as fast as many people make it seem. In as much as investing in cryptocurrencies is a good idea, it is also wise to do a proper research before investing. One thing to take note of before investing is that you should only invest what you can afford to lose.
1. It can make you super rich
Investing in cryptocurrencies can make one very rich such that they even give up their jobs to take up crypto trading full time. One of the best ways to make big returns from cryptocurrency investments is by investing at early stage. A lot of investors get into presales of promising projects so they can get the tokens at the cheapest possible price before launch. This is a sure bet when it comes to making money with cryptocurrencies.
Early investors in projects like Ethereum, Doge, Shiba Inu, Polygon, Fantom and so many others have made so much profits from their investments in these cryptocurrencies. The extent to which cryptocurrencies can go is immeasurable as we have seen with projects like $Shib which made a lot of persons rich within a period of just one year.
2. It is the future of money
Cryptocurrency believers see cryptocurrencies as the future of money because of the ease and speed of transaction associated with them. One can within a short frame of time send over money to a friend or client who lives in a far away country without leaving the comfort of his/her house.
Also, the transaction fees associated with most cryptocurrencies are very cheap compared to the fees spent when sending money across different countries. Crypto is fast becoming a first choice for people who send out money to loved ones or clients staying in far away countries.
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3. Access to lots of defi solutions
The world of decentralized finance is fast evolving and has seen huge growth in recent times. As at the time of writing this article, the total value locked in DeFi stands well over $200 Billion and keeps growing by the day. Decentralized finance provides lots of financial solutions for people in the crypto space ranging from decentralized exchanges to lending and gaming platforms.
Cryptocurrencies have made access to loans easy when compared to regular loans taken from other financial institutions like banks. With decentralized loan platforms, one can easily access loans in a matter of minutes without having to fill up different documents as is customary with the traditional banking system.
It is important for everyone to learn how to invest in cryptocurrencies because it looks promising and has already changed a lot of lives. At this time, less than 10% of the worlds’ population hold crypto and it has already changed a lot of lives. We can only imagine what would happen when about half of the worlds’ population begin to invest in cryptocurrencies. As is already stated, cryptocurrency investments are very risky and proper research should be done before taking part in them.