5 Reasons to Invest in Cryptocurrencies

• As cryptos are decentralised in nature, one can cross-verify the transaction using a blockchain explorer on the platform to track live transfers.
• Also, cryptocurrency offers easy accessibility; all required is an internet connection, a computer or a mobile phone.
• Using cryptocurrency makes it easy to transfer money without any involvement of banks and other financial institutions.

Cryptocurrency has become a hot debate today, but many things are still unknown to many potential investors who want to invest in crypto assets. This often leaves the investors in a quandary of whether they should invest in it or stocks. This indecision often makes many investors opt for a second option as they are regulated and more reliable. But cryptocurrency, a form of digital currency based on a network, offers a more decentralised way to transfer money. Hence, it does not crumble at a single point of failure.

This may be one of the reasons why cryptocurrency investing has risen to prominence. With technological involvement and industrialisation, digital currencies are obtaining a satisfactory position over others, for example, Bitcoin. Using cryptocurrency makes it easy to transfer money without any involvement of banks and other financial institutions.

Cryptos such as Bitcoin (BTC) and Dogecoin (DOGE) are now widely accepted as a mode of payment in mainstream commercial shops and have the backing of tech giants such as Microsoft, Tesla etc. Let us explore 5 reasons to start your crypto investment journey in 2023.

Quick, Economical, Accessible, and Secure

Conventional financial transactions take time, while cryptocurrency transactions happen in real-time. While a wire transfer can take hours, any cryptocurrency transaction is complete once the network confirms your block in the transaction.

The transaction costs are the bare minimum. A wire transfer can cost anywhere between $25 to $50, and the costs of any transaction with cryptocurrencies are the barest minimum.

Also, cryptocurrency offers easy accessibility; all required is an internet connection, a computer or a mobile phone. Opening a wallet is also very easy and requires no long and tedious verification process. At the same time, since cryptocurrencies run on Blockchain technology, it is relatively secure as it makes hacking difficult.

Inflation protection

Fiat currencies are always prone to inflation since the control is by a central authority, and the possibility of excess minting to fiat currencies is always there to finance the deficit. However, Bitcoin and such crypto assets offer protection against inflation since they have a hard cap on the total supply of coins. Some crypto assets have implemented mechanisms to act as a hedge against inflation.

Transparent

As cryptos are decentralised in nature, one can cross-verify the transaction using a blockchain explorer on the platform to track live transfers. This open and transparent system is a relief among investors and is corruption-free.

Therefore, no one can access your funds unless they gain access to your crypto wallet’s private key. The downside is that if you forget your key, you cannot recover your funds. The transactions are secured using public and private keys, proof of work or proof-of-stake and other various incentive systems.

Privacy

While deposits in bank accounts require a lengthy verification process, cryptocurrency users are identified by a personal key number only and are not required to furnish any other personal details; thus, a high level of privacy is maintained.

However, this decentralised and anonymous nature of crypto assets has made it the eyesore of many regulatory authorities. At the same time, open economies like the West and India have not trodden this path and instead have chosen to wait, study and let the cryptocurrency sector move as per the market scenario.

Is Crypto the Future Currency?

Remittances and global payments are the engines that will drive cryptocurrency in the future; hence, the prospects are bright. Also, the broader acceptance of Blockchain technology will fuel its growth. Investing in crypto is a long-term investment and will give rich dividends in the future.