Cryptocurrencies have entered the mainstream officially, with numerous retails, and institutional investors investing huge amounts of money in crypto. But people consider cryptocurrencies a great investment opportunity, especially since there is a significant potential for cryptocurrencies to grow in value. If you’re new to the crypto world, this article will provide an overview of the main advantage of investing in crypto.
Significant Potential for Appreciation
One of the reasons why people are interested in investing in crypto is the significant money-making potential which cannot be ignored, especially with the last bull cycle of Bitcoin. In fact, Bitcoin became one of the largest cryptocurrencies in the market and in general one of the assets that have quickly managed to surpass a market capitalization of $1 billion.
Because its price considerably increased in a period of 12 months, reaching a record high price of $63,000, other cryptocurrencies followed this trend and attracted more investors in the crypto market.
So even if you invest in a lesser-known cryptocurrency, there is a chance to appreciate in value in the future, especially since most cryptocurrencies are decentralized and their price is affected by the demand and the supply of the crypto market.
Decentralized Virtual Currencies
As we mentioned earlier, most cryptocurrencies are decentralized, and therefore, they are not under the control of a government. This is another perk because, as an investment, it is not impacted by the recession, inflation, financial crisis, monetary and fiscal policies.
Even though its value is affected by the crypto market demand and supply, cryptocurrencies have become a great alternative to other investments due to their decentralized nature.
Accessible
Another advantage of cryptocurrencies is that most of them are easily accessible on online trading sites. Actually, you can create an account from your mobile or desktop device on a trading platform and invest in crypto; however, not all trading sites support every cryptocurrency, and you need to do research to find where your desired cryptocurrency is available.
What’s more, there are high-quality trading sites like the Yuan Pay App where you can invest in the e-Yuan, which is a new virtual currency created by the Chinese government. You can create an account but depositing $250 on the site. Also, it is expected that it will rise in value significantly as soon as it’s launched on the market.
Low Processing Fees and Short Processing Time
Another advantage of investing in cryptocurrencies is that they are processed on the blockchain network, which is a peer-to-peer-based decentralized database, and the processing fees tend to be low on the network. Furthermore, the processing time of each crypto transaction is fairly short. It might last from a couple of seconds to 10 minutes, but again this is a very fast processing time for sending and receiving crypto or trading online.
Growing Crypto Adoption and Acceptance
Since Bitcoin’s latest bull run, there has been an increase in the number of businesses and organizations motivated to accept crypto payments. So, you can also use your cryptocurrencies to purchase the products and services from brands that operate either online or offline. You can choose from recognizable companies like Overstock, Home Depot, Microsoft, and many other brands.
On the other hand, there is also an increased number of investors on online trading sites as well as the number of crypto wallets has increased recently. Overall, there is a huge interest in cryptocurrencies, and as you can see, there are even governments that support the mainstream crypto adoption.
Beyond the Chinese government that is working on its own cryptocurrency, El Salvador has decided to accept Bitcoin as a viable legal tender, and many other countries are looking to regulate crypto. So, it’s safe to say that there are a lot of advantages in investing in crypto when it comes to your long-term financial goals.