The gains from cryptocurrency are the topic that everyone in the digital space has been talking about. Be aware of this potential investment instrument as well as how to make the most of investing into the cryptocurrency market, click here!
Cryptocurrency is a digital asset everybody is talking about. It has proven in the past five years that it has a large potential that is waiting to be unleashed. This investment has seen returns of 700% on average in the past three years.
A common investor is cautious about cryptocurrency as investment choice due to a range of reasons. It is firstly, it’s not something that can be physically manipulated and, therefore it is not a tangible asset. However, when you make purchases using your FIAT currency, you get an item that is completely digital. There is also no official or authority in charge who is responsible for cryptocurrency. Cryptocurrency is a decentralized format and can be procured from online cryptocurrency exchanges like Indus Coin. The exchanges provide genuine cryptocoins that can be used as a means of trading.
Despite the fears, many investors are hesitant to bet on the market. The trend is being regarded positively by experts in trade. Merchants and online stores are accepting cryptocurrency for payment. All of these positive signals showing that crypto is here to stay. Below are 5 reasons it is a good idea to invest into cryptocurrency.
1. High-Risk, High Return Option
The cryptocurrency can be utilized for investment through three ways:
* Holding onto cryptocurrency The cryptocurrency rates have been increasing multiple times in the last 10 years. The cryptocurrency was introduced in 2009, and its prices have significantly increased over the past five years. You can buy cryptocurrency, and later keep it. This is similar to buying gold for investment. To begin, invest small amounts of money. There is the option of selling your cryptocoins at a later date for a more expensive price and reap in the rewards. However, make sure you store your cryptocoins inside a safe wallet that is encrypted like that offered by Indus Coin to make sure it’s protected from hacker attacks or Trojans.
* Trade To trade is to purchase cryptocurrency at a lower price, and trade them for a higher cost. The prices of cryptocurrency are controlled by supply and demand mechanism. The best way to stay on top of your investment is to always keep the track of your money when trading.
* Mining Bitcoins: Investing means investing in miners or companies which are involved in the mining of cryptocurrency. You will receive your portion of cryptocoins when they’re produced, according to the guidelines set at the time that you placed your bet.
2. The Trends Are Positive
The current trends in the growth of cryptocurrency as a potential investment opportunity in is very favorable. In 2017, the market for cryptocurrency grew by 1200%. This means that at the start of 2017, these digital assets were valued as $17.7 billion. At the end of 2017, this figure stood at $230.9 billion. This is due to the rising interest of retail and institutional investors with some big names in business making this investment.
The demand for cryptocurrency is growing, with IOTAs launched by various crypto exchanges are now on the list of investors. The trends have been extremely favorable, yet the dangers remain.
3. It is an extremely rare resource
A scarce resource is cryptocurrency. It’s interesting to learn that Bitcoin is the oldest cryptocurrency, can be mined only in total at 21,000,000 Bitcoins.
The blockchains developed by Satoshi Nakamoto have been constructed with such a way that they have a limitation that is attached to them. Each mining cycle produces a set amount of coins. After four or five years the pool will become more difficult to mine thus the created cryptocoins change into “x/2”. That means, not only this is a resource in short supply but the process of mining is getting complex and the output decreases. In the future, it could be an extremely sought-after possession to hold.
4. The United States is unaffected from any policy affecting the monetary system
They aren’t bound by the monetary policies of any country and have no concept like inflation and recession. It is not necessary to be concerned about government policies that affect currency when you invest in digital currencies. Your only worry is there is a chance that any Government prohibits it as a option for payment. The only issue is which you must pay attention to.
5. Exit Options Are Always Available
Although it’s not that difficult to begin the process of investing in cryptocoins and other cryptocurrency, exiting out of this is also very simple. Cryptocurrency is much in demand and it is possible to exchange your cryptocoins in any time, and then exit. As opposed to financial institutions, there is no lock-in or penalty for investing in cryptocurrency. This risk-free investment means that you have absolutely nothing to lose in the event of an early exit.