6 advantages of investing in cryptocurrencies

The birth of bitcoin in 2009 opened the door to the possibility of investing in a completely new type of asset – cryptocurrency. It entered space very early.

Intrigued by the immense potential of this nascent but promising asset, they bought cryptocurrencies at low prices. Consequently, the bull run of 2017 led them to become millionaires/billionaires. Even those who did not invest much were reaping decent profits.

Three years later, cryptocurrencies are still profitable, and the market is here to stay. Maybe you’re already an investor/trader or maybe you’re thinking of trying your luck. In both cases, it makes sense to know the advantages of investing in cryptocurrencies.

Cryptocurrency has a bright future

According to a report called Imagine 2030, published by Deutsche Bank, credit and debit cards will become obsolete. They will be replaced by smartphones and other electronic devices.

Cryptocurrencies will no longer be considered outcasts, but alternatives to existing monetary systems. Their advantages, such as security, speed, minimal transaction fees, ease of storage and relevance in the digital era, will be recognized.

Concrete regulatory guidelines would popularize cryptocurrencies and encourage their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030, and nearly 350 million by 2035.

An opportunity to be part of a growing community

WazirX’s #IndiaWantsCrypto the campaign recently completed 600 days. It has become a massive movement supporting the adoption of cryptocurrencies and blockchain in India.

Also, the recent Supreme Court judgment overturning RBI’s 2018 ban on crypto banking has instilled a new surge of confidence among Indian investors in bitcoin and cryptocurrencies.

The 2020 Edelman Trust Barometer report also points to an increase in people’s faith in cryptocurrencies and blockchain technology. According to findings, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency/blockchain will be positive.

By being a cryptocurrency investor, you stand as part of a successful and rapidly growing community.

Increased profit potential

Diversification is a key investment rule. Especially in these times when most assets have suffered major losses due to economic difficulties triggered by the COVID-19 pandemic.

While investing in bitcoin has returned 26% year-to-date, gold has returned 16%. Many other cryptocurrencies have registered triple-digit ROIs. As we all know, stock markets have performed poorly. Crude oil prices notoriously fell below zero in the month of April.

Including bitcoin or any other cryptocurrency in your portfolio would protect the value of your fund in such uncertain situations in the global market. This fact also impressed billionaire macro hedge fund manager Paul Tudor Jones when he announced plans to invest in Bitcoin a month ago.

Cryptocurrency markets work 24X7X365

Unlike normal markets, cryptocurrency markets work 24 hours a day, every day of the year without fatigue. This is because digital currency systems are fundamentally designed using pieces of software code that are protected by cryptography.

The operational plan 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 this way.

For example, Bitcoin has successfully processed transactions with a 99.98% uptime since its inception in 2009.

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No paperwork or formality is required

You can invest in bitcoin or any other cryptocurrency anywhere and anytime without any unnecessary conditions.

Unlike conventional investment options, where an absurdly large amount of documentation is required to prove yourself as a ‘certified investor’, crypto investing is a free-for-all. In fact, this was the intended goal behind the inception of cryptocurrencies. Democratization of finance/money.

To buy any cryptocurrency at WazirX, you need to open an account for which you just need to enter some basic information including bank account details. Once they’re confirmed, within a few hours, you’re good to go.

Exclusive ownership in the investment

When you buy bitcoin or any other 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, no third party ‘manages your investment’ for you. You manage buying and selling whenever you want.

User autonomy is the biggest advantage of the cryptocurrency system, which provides incredible opportunities to invest and build a corpus on your main capital ‘independently’.

These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to start your crypto investment journey.