Today, cryptocurrencies are becoming more popular than ever before – and there’s no reason why you shouldn’t be investing in them, too! From its ability to lower the barrier of entry for new entrepreneurs to its viability as a long-term store of value, crypto currency has many aspects that make it worth your investment. Before you invest in it, though, make sure you’re aware of the top 10 reasons to invest in crypto currency. If you’re not yet convinced about investing in crypto currency, this article will change your mind!
Why everyone is talking about cryptocurrencies
Cryptocurrencies are, without a doubt, one of today’s hottest investing trends. If you want to catch up on your crypto knowledge before diving into the market, check out our list of Crypto 101 articles below! What exactly is cryptocurrency? How does it work? Who created it? And why is everyone talking about crypto? Learn all that and more here. In short, crypto currency can be defined as any type of digital money designed to work as a medium of exchange using cryptography for security. Cryptography is used for verification and transaction signature (cryptographic signature) technology which allows transfer or other manipulation from one owner to another through private keys. One example of crypto currency is Bitcoin which was first developed in 2009.
Different kinds of cryptocurrency to invest in
Bitcoin and Ethereum are just two of many cryptocurrencies on the market. However, they are also arguably two of the most promising. They will always be at or near the top of a crypto investor’s list, but that doesn’t mean you should completely overlook other options. In fact, it’s wise to diversify your investment portfolio across several different types of crypto currency. Think about new digital currencies that could have staying power and stand out from the rest as potential moneymakers down-the-road, such as Dash and Ripple. You may even want to include coins with larger market caps, such as Monero and Litecoin; even though they aren’t necessarily considered major players, they still could deliver significant gains if you invest wisely today!
What if you are late?
Even if you’re very late, don’t panic. You may still be able to buy some of your desired crypto currency at a discount. Chances are good that it will go up in value quickly as well. If you feel you are still not too late and have cash available, pick up some crypto currency at a discount; even just a small amount can help build your portfolio over time. If you do choose to invest, wait until your investment is less than $10,000 USD or 5% of your total liquid net worth (whichever is greater). Anything higher could pose larger risks for tax purposes and affect future financial aid eligibility. And remember that investing money involves risk—anyone can lose money investing (although hopefully not all of it!).
You don’t have enough time
If you’re looking for investment opportunities, but aren’t ready to fully commit and start your own business, consider crypto currency. Crypto currency is digital money that can be used online; it has value and many people around the world are using it to buy goods and services, or even trade for other currencies. Just as anyone can start a regular business with an investment of time, energy and money—anyone can invest in crypto currency. You don’t need special expertise or contacts; you just need a little guidance on where best to invest your time or energy (hint: there are tons of resources online). Some newer cryptocurrencies have gained more than 1,000% since January 2017!
It sounds risky…
Cryptocurrency is indeed a risky investment, but it’s also a high-potential one. It’s similar to any other investment — there are pros and cons that must be weighed when determining how much money you want to invest, how much time you want to invest in watching markets and reacting accordingly, etc. If you want quick profits with minimal risk, cryptocurrency may not be for you — but if your goal is long-term wealth creation and increased financial freedom (and who isn’t?), then crypto could be a great place for your money. The reality of cryptocurrency is that it’s still so new and undefined that much of what happens next won’t necessarily be up to us.
I don’t know anything about this technology
If you’re anything like me, you don’t know a thing about how crypto currency works. You might have heard that it can be used for online purchases and money transfers, but you probably don’t know much else about it (and what little you do know is likely wrong). I’m not an investment advisor, so I’m certainly not going to offer advice on what to buy or whether you should buy anything at all. But if your curiosity is piqued by all of these massive movements of money and those who benefit from them—and there are plenty of people who will tell you that crypto currencies are nothing more than an enormous bubble—it might be time for a bit of education.
How do I set up an account?
The first step to getting involved with crypto currency is setting up an account. The easiest way to do that is by signing up for a web-based wallet on one of these sites: Coinbase, Coincheck, or Bitpanda. While there are numerous wallets out there, some of them are not available in certain countries and many don’t support bank transfers. When it comes time to invest, keep it simple. Keep your investments safe and secure by storing them offline (more on that later). Once you get setup with a wallet, you need a way of investing into crypto currency: The two most common ways are using one of these web-based wallets or investing directly into crypto currencies like Bitcoin or Ethereum through online exchanges like Binance or Bittrex.
Cryptocurrency isn’t based on government recognition or regulation.
There is a lot of fear and uncertainty about crypto currency investment. That being said, it also has a lower cost for transactions than other types of payment. The crypto currency market is not bound by any centralized institution (e.g., a bank or government), which means that many people feel more comfortable using it than other options such as PayPal or credit cards. Because there is no centralized institution overseeing crypto currencies, however, prices may fluctuate rapidly at times with extreme price swings.
Cryptocurrencies can give you more freedom.
Crypto offers a degree of freedom many people find appealing. While you may want to work for someone else for a paycheck, crypto lets you forge your own path and create your own set of rules. But how, exactly? Well, how would you like to make money doing something fun—like playing video games or taking pictures? Or help others enjoy their favorite pastime? Crypto is a hobbyist’s dream come true! And if you’re serious about investing in crypto currency but aren’t sure where to start, don’t worry—we have answers here. But first let’s talk about cryptocurrency basics. (If you are already an expert on cryptocurrencies and just want our opinions on which ones might do well over time, skip down below.)
Governments may start banning cryptocurrencies.
One thing crypto investors have been worrying about is government regulation. Up until now, crypto has been operating mostly without government intervention—except for some minor, yet important regulatory decisions by financial and tax authorities. For example, in 2016, FINMA, Switzerland’s financial-market regulator and watchdog, declared that bitcoins are considered a legitimate currency—meaning they should be treated as such by banks and financial institutions. However, Swiss regulators also pointed out that for many businesses and individuals dealing with virtual currencies an additional level of vigilance is required. (Related: If You’re Thinking About Investing In Bitcoin or Other Cryptocurrencies — Read This First) Are cryptocurrencies safe?: Ultimately nobody can say for sure whether or not cryptocurrencies are safe investments.