Cryptocurrency has become a highly debatable topic worldwide. The world of crypto is complex and understanding it entirely is very challenging. Hence, it is natural to be skeptical about making a crypto investment or having rational conversations around it.
However, cryptocurrencies like Dogecoin, Bitcoin, Ethereum and others have gained mainstream attention for their mass adoption and generating lucrative returns. Following are some benefits of crypto and why you should consider investing in it.
1. Portfolio Diversification
You should include crypto as part of your investment strategy. As you invest in crypto, you create a separate asset base from the traditional financial marketplace.
For instance, cryptocurrency is not affected by the downturn in the stock market or when inflationary trends diminish the currency’s value. So, cryptocurrencies offer investors another means of trying and growing money other than bonds, ETFs and stocks.
2. Easy Transactions
Transactions with cryptocurrency are done easily, at relatively low costs and privately. You can receive and send different types of cryptocurrencies with an exchange wallet, hardware wallet or smartphone app.
Some cryptocurrencies like Ethereum, Litecoin and Bitcoin can also be bought with cash. Since you don’t require a bank account to use crypto, you can buy them using cash and send them to your phone or digital wallet.
3. Secured payments
Using cryptocurrency for payment is secure as it is rooted in blockchain security and cryptography. With more computing power added to the network, the transactions become even more secure. Therefore, unless one gains access to your crypto wallet, they cannot get to your funds.
An attack on a blockchain network or an attempt for blockchain modification would require sufficient computing power to confirm multiple blocks before the network can check the ledger’s accuracy. For blockchains like Ethereum and Bitcoin, such attacks can be prohibitively expensive.
Hacking crypto accounts is usually associated with poor security levels at the centralised exchange. Hence, keeping your crypto assets in the wallet ensures far more security, and you have peace of mind.
4. More Privacy
You enjoy privacy as you don’t have to register with a financial institution for your crypto investment. However, blockchains have a public ledger that keeps records of all transactions.
Since the transactions through crypto are pseudonymous, you have more ways of making anonymous transactions. But if you connect your wallet address with an identity, the entire transaction data can become public. However, there are still ways to mask transactions and maintain privacy.
5. Easy accessibility
You only need a steady internet connection and a computer to use cryptocurrency. Setting up a crypto wallet is much faster than opening an account with any traditional financial institution, as there is no credit check or ID verification.
Also, crypto offers unbanked access to financial services without going through any centralized authority. There could be several reasons a person is unwilling or unable to open a bank account. But crypto makes it easy and convenient for these people to make monetary transactions.
6. Less processing time
Many financial institutions and banks have extensive transfer periods. Sometimes, you may even need to pay a percentage for a fast fund transfer. The lengthy processing time can create problems if you need to access funds quickly. Since crypto makes transfers through blockchain, the transactions are peer-to-peer and done in seconds.
Cryptocurrencies can cause diversification in your investment portfolio, so it is a wise investment decision. But before you invest, make sure you research and learn if the currency can provide you with maximum returns and enable you to manage the risks of your entire portfolio.
