Cryptocurrency keeps getting better each day. It keeps on amplifying your wealth, just exchange crypto like your viral posts on social media. A contagious financial tool for a good portfolio and a catalyst for growth. One interesting fact is that there are more than 5000 cryptocurrencies.
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2021 was a fantastic year, but where do we go from here?
Let us magnify the situation here. Both Bitcoin and Ethereum touched the higher bars of performance. Long-term investors are relying on it. By the time you read this article, there might be more wonderful news about cryptocurrency. I will try to present here the future possibilities of cryptocurrency.
New regulations are currently in place. They are under the carpets. Measures to minimize the risk from cybercriminals are in place. The purpose is to make this investment a safe tool for people. For instance: China declared in September that all cryptocurrency transactions are illegal. Clear regulations will remove all the hindrances to make it a safer trade.
How Will New Regulations Impact Investors?
IRS will find it easier to track tax evasion. Investors can transparently keep a record of transactions. For instance: recording any capitals gains or losses on crypto-assets will be easier. On the other hand, the price of cryptocurrencies will also be affected in the fluctuating market.
ETF Approval - An Important Factor to Consider
Bitcoin ETF made its debut on NYSE. It will help investors to purchase cryptocurrency from existing investment firms. Due to the rising demand, both the equity and bond markets deal with it. Let us watch in from an investor's point of view. Easier accessibility of cryptocurrency assets helps people to purchase them without any hassles. If you plan to invest in a Bitcoin ETF, remember the risks are as same as any other cryptocurrency. You must be willing to take the risk. Otherwise, it is futile to invest your money.
What does the Future Hold?
Bitcoin is the best in the crypto market. It has the highest market capitalization rate. In November 2021, its price rose to $68000. In October, the rate was $60000 whereas in July it was $30000. There is a high fluctuation in the market rates. Experts suggest keeping the market risk for cryptocurrency to less than 5% in the portfolio. Talking about short-term growth, people are hopeful. The volatility in Bitcoin prices is a factor to consider. If you want to play for long, short-term results should not impact you.
Looking from it at an angle to amplify your wealth is not a good decision. Stick to traditional investment tools apart from cryptocurrency. For instance: if you want cryptocurrency as a tool to save for your retirement, it is time to reconsider your decision. Keep your investments small and diversify them. It will reduce the risk factor. At the same time, you will have more time to think about cryptocurrency.
It is necessary to spend your money wisely and then invest in cryptocurrency. One must assess the risk factor associated with it and make a decision. I hope this article helps you.
The birth of bitcoin in 2009 opened doors to investment opportunities in an entirely new kind of asset class - cryptocurrency. Lots entered the space way early.
Intrigued by the immense potential of these fledgling but promising assets, they bought cryptos at cheap prices. Consequently, the bull run of 2017 saw them become millionaires/ billionaires. Even those who didn't stake much reaped decent profits.
Three years later cryptocurrencies still remain profitable, and the market is here to stay. You may already be an investor/trader or maybe contemplating 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 will become obsolete. Smartphones and other electronic devices will replace them.
Cryptocurrencies will no longer be seen as outcasts but alternatives to existing monetary systems. Their benefits, 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 boost their adoption. The report forecasts that there will be 200 million cryptocurrency wallet users by 2030, and almost 350 million by the year 2035.
Opportunity to be part of a Growing Community
WazirX's #IndiaWantsCrypto 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 nullifying RBI's crypto banking ban from 2018 has instilled a new rush of confidence amongst Indian bitcoin and cryptocurrency investors.
The 2020 Edelman Trust Barometer Report also points out peoples' rising faith in cryptocurrencies and blockchain technology. As per the findings, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say that the impact of cryptocurrency/blockchain will be positive.
By being a cryptocurrency investor, you stand to be a part of a thriving and rapidly growing community.
Increased Profit Potential
Diversification is an essential investment thumb rule. Especially, during these times when the majority of the assets have incurred heavy losses due to economic hardships spurred by the COVID-19 pandemic.
While investment in bitcoin has given 26% returns from the starting of the year to date, gold has returned 16%. Many other cryptocurrencies have registered three-digit ROI. Stock markets as we all know have posted dismal performances. Crude oil prices notoriously crashed below 0 in the month of April.
Including bitcoin or any other cryptocurrencies in your portfolio would protect your fund's value in such uncertain global market situations. This fact was also impressed upon by billionaire macro hedge fund manager Paul Tudor Jones when a month back he announced plans to invest in Bitcoin.
Cryptocurrency Markets Are On 24X7X365
As opposed to usual markets, cryptocurrency markets operate round the clock, all days in a year without fatigue. That's because digital currency systems are essentially designed using pieces of software code that are secured by cryptography.
The operational blueprint doesn't involve human interference. So, you are free to trade crypto or invest in digital assets whenever you want to. That's a great benefit! Cryptocurrency markets are very efficient that way.
E.g., Bitcoin has successfully processed transactions with 99.98% uptime since its inception in 2009.
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No Paperwork or Formality Required
You can invest in bitcoin or any other cryptocurrency anywhere and anytime without any unnecessary terms and conditions.
Unlike conventional investment options, where an absurdly high amount of documentation is required to prove yourself as an 'accredited investor', crypto-investment is free for all. In fact, that was the intended goal behind the inception of cryptocurrencies. The democratization of finance/money.
For buying any cryptocurrency on WazirX, you need to open an account for which you just 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 Ownership in Investment
When you buy bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction happens in a peer-to-peer arrangement.
Unlike bonds, mutual funds, stockbrokers, no third party 'manages your investment' for you. You call the buying and selling shots, whenever you want to.
User autonomy is the biggest benefit of cryptocurrency systems that provides incredible opportunities to invest and build a corpus on your principal capital 'independently'.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to kickstart your crypto investment journey.