Top 7 Reasons to Invest in Cryptocurrency
Cryptocurrency has become very popular. Everyone wants to know about cryptocurrency and its future. Lets first read what is cryptocurrency. Cryptocurrency is a type of digital currency that can be used as a means of payment to purchase goods and services. Cryptocurrency servers the purpose of ordinary money like dollars, pounds, rupees, etc. but does not have a physical form like banknotes or coins. Cryptocurrency is a new form of digital money. They can be transferred into accounts as well as exchanged for cash. Cryptocurrency is based on the principles of Decentralization. The transactions made through cryptocurrency holders are not regulated or controlled by any kind of financial or governmental authority. It uses cryptography that offers a security system that is very difficult to crack.
Cryptocurrency has gained popularity. Many people India have invested in cryptocurrency. Many people fear scared of investing in cryptocurrency as they find it very volatile. Nobody knows the future of cryptocurrency.
But if you want to invest in cryptocurrency and don’t know whether to invest or no then read top 7 reasons to invest in cryptocurrency.
Cryptocurrency is decentralized currency which means cryptocurrency is not controlled by any financial or government authority. No third party is involved. And it carries global price. So, if you buy cryptocurrency then price is not decided by any middleman or government. You can store your asset in cryptocurrency wallet.
Any cryptocurrency or bitcoin have a limited supply. The algorithm puts cap on total supply of cryptocurrency. As the supply is limited, purchasing power will be increased.
Transparent in Transaction and Secure
Cryptocurrency payments are recorded and monitored in a public ledger. It makes them see-through and unchangeable. Cryptocurrency payments are verified and cannot be hacked or manipulated easily. This reassures that cryptocurrency payments are away from risk and corruption. The transactions are publicly available. An account holder cannot be found out but the transaction and amount of money in the system can be tracked.
Long Term Investment
Cryptocurrencies are not linked to any currency or don’t come under regulations. Bank failures, hyperinflations or other economic disasters would not affect cryptocurrencies. Even when the whole financial system collapses, the value of cryptocurrency wont be harmed. This makes it a good option for long term investment. You can also invest a part of your investment to get benefit post retirement.
Less Transaction Cost
When you pay through bank, you need to pay transaction fees, taxes. As banks have to pay salary to employees, rent to their buildings but cryptocurrency transactions totally depend upon online platform. So, transaction fees is less comparatively.
You can trade in cryptocurrency 24 by 7. Other trading platforms have restriction. So, it makes cryptocurrency trading flexible for users.
Cryptocurrency like Bitcoin is known as Digital Gold
Bitcoin is the most valuable cryptocurrency in the world. Known as “digital gold”, bitcoin has given better return in last two years as compared to gold. Gold as well as Bitcoin is considered as a tool to hedge against inflationary conditions.
Before making decision to invest in cryptocurrency, you should read about it. Research is necessary to invest in cryptocurrency as prices fluctuate. Cryptocurrency is decentralized so it tends to be volatile due to market manipulation. Read everything about cryptocurrency before investing in it. You should analyze coin’s supply limit.
Getting into crypto is not easy but Indian crypto exchanges like WazirX and CoinSwtich created a platform where Indian people can buy or sell crypto with security. WazirX is a popular cryptocurrency exchange app that can be used to trade cryptocurrencies in India.