2022-05-01

What Are the Impressive Benefits of Investing in Cryptocurrency

benefits of investing

Over the past few years, cryptocurrency has exploded in popularity and risen to trillions of dollars in market capitalization.

From humble beginnings, there are now nearly 2000 different cryptocurrencies, with more popping up every year. The vast majority of those are tokens and small market capitalization coins.

But there are a handful of digital currencies that stand out from the rest--and Bitcoin is the granddaddy of them all.

Still on the fence about jumping on the bandwagon? Read on to find out what are the impressive benefits of investing in cryptocurrency!

Easy Transactions

Transacting with cryptocurrency is easy with a wallet. You can get one on your phone, computer, or with a hardware wallet.

When buying crypto, you don't necessarily need to have access to a bank account either. You shouldn't need to, that's part of the beauty of crypto.

Many cryptocurrencies like Bitcoin, Ethereum, and Litecoin are available via a crypto ATM with cash. You could also trade crypto for crypto.

Fast Transactions

Maybe you're used to moving your transactions from one account or financial institution at a certain speed. You may even think this speed is fast.

Most U.S.-based financial institutions will take 3-5 days, wire transfers 24 hours, and stocks settling in 3 days.

One of the benefits of investing and transacting with crypto is its speed. Most cryptocurrencies will only take minutes once they're confirmed on the blockchain.

Cost of Transactions

Transactions won't cost nearly as much as fiat-based financial systems. You've probably come accustomed to spending upwards of $25-30 dollars just for wire transfers. Things like remittances and sending money abroad tend to be even more expensive.

Things don't have to be this way. One of the perks of crypto is that these costs tend to be much lower. While it isn't necessarily the case across the board with all cryptocurrencies, you will find ones that have low costs while transaction and operate a lot like cash (dash, Litecoin, etc.)

The cost of the transaction will largely depend on the blockchain you're using. Things like demand and congestion all factor into the costs. With that said, you shouldn't have trouble finding median transaction fees to be lower than most wire transfers.

Increased Security

Part of the reason why many opt into crypto is because of the added level of security. A large part of the security comes from the hash rate. The higher the hash rate, the more difficult it is to compromise the network.

Bitcoin has the highest hash rate, making it the most secure cryptocurrency.

Research best security practices. Most hacks come from human error.

Industry Growth

Investing in crypto is akin to investing in internet companies in the 90s and early 00s. You'll be amazed at how much innovation and growth are happening at an exponential pace. Be a part of something special and start investing in crypto today.

Potential for Greater Returns

One of the biggest benefits of investing in cryptocurrencies is their potential for greater returns. Bitcoin's rise in value is something to marvel at.

When it first came to fruition in 2009, it was only worth pennies. Fast forward to today and 1 bitcoin is worth tens of thousands of dollars. Despite the market being volatile at times, people hold bitcoin because they believe it will only increase in value over time.

Keep in mind that you'll want to do your due diligence when investing in crypto. With greater return potential also comes risk, too. Always do your research and watch out for scammers.

The S&P 500 index pales in comparison to the exponential gains we have seen in the crypto market.

Pseudonymity

People unfamiliar with cryptocurrency might think it is a 100% anonymous way of transaction. While it is more private, it's more pseudonymous than anonymous.

The blockchain, a public ledger, is just one example of this. You could level up your privacy through coin mixing service groups or using more private coins like Monero, Zcash, or Pirate Chain. You could also run your full node which would make your transactions more opaque.

To further enhance your privacy, look into non-KYC (Know Your Customer) services like decentralized exchanges (DEXs).

While cryptocurrency isn't 100% private at all times, it is still a lot more private than fiat currency.

Diversification

Aside from investing in stocks and bonds, why not start investing in crypto? When you do you'll be investing in a non-correlated asset class. This means it is independent of other markets.

Diversification is one of the biggest benefits of investing in cryptocurrency. When you start learning more and more about crypto, you'll want to diversify your crypto portfolio too. This means holding coins that are stores of value, speculative, PoS (Proof-of-Stake), PoW (Proof-of-Work), NFTs (non-fungible tokens), stablecoins, meme coins, cash-like coins, etc.

You always want to do your research and vet projects and their teams. When you do you'll be setting yourself up for success and potentially big returns.

Transparency

When answering the question "what is cryptocurrency?", you'll come across the blockchain, a public open ledger. The blockchain allows for a more transparent transacting interface. Anyone can see how much crypto is in a wallet, check out transaction data, where it came from and where it went, etc.

Since the blockchain is transparent, this reduces fraudulent transactions from taking place.

Accessibility

Too often people aren't able to use financial institutions because of one reason or another. They will use KYC to learn who you are and be able to identify you in the future. This means that you may not be able to transact based on information about you.

Part of the ethos of crypto is that it is accessible to anyone, no matter who they are. Crypto doesn't require identification of any kind. You won't have to worry about a background or credit check either.

All you need to get started is a computer, smartphone, and internet connection. Now the unbanked can get their hands on some crypto with either a hot or cold wallet.

Crypto never shuts down. It operates 24/7. The same can't be true for the stock market, can it?

Digital

Other beautiful benefits of investing in crypto are that they are digital. This creates some unique advantages over physical money.

One, you won't have to worry about pick-pocketers. Since crypto has a high level of security, you won't have to worry about people stealing your funds as much. As long as you follow best practices and don't reveal your private key, you should be good to go.

The crypto is truly yours. For example, you could remember your seed phrase in your head and travel freely without worrying about someone confiscating your bitcoin. Try to do that with gold.

Control Over Your Assets

When investing in crypto, you'll want to familiarize yourself with the keys.

There is a public and private keys. Your public key is what you'd share when you'd like to receive crypto. It is similar to an e-mail address in that regard.

Your private key is meant to be private and functions more like a password. You are responsible for keeping your private key away from prying eyes. Anyone who has access to the private key has access to your crypto.

It is also helpful to know the distinction between custodial and non-custodial wallets.

A custodial wallet is where you don't have full access to your keys—you are allowing the custodian to take care of this responsibility on your behalf. A non-custodial wallet is where you have full access and ownership of your crypto.

You also never want to leave your crypto on an exchange as it opens you up to vulnerabilities. Always remember the mantra—not your keys, not your coins.

Inflation Hedge

The purchasing power of the dollar isn't the same as it used to be. Part of the reason for this is that the U.S. Federal Reserve prints money. This lessens the value of the dollar and makes it inflationary.

Cryptocurrencies like bitcoin are deflationary due to their limited supply cap. For example, there will only ever be 21 million bitcoin mined. This incentivizes you to hold since the value will increase over time.

Holding cryptocurrencies is a hedge against inflation, making it one of the top reasons to invest in it no matter if it's currently a bull or bear market.

Global Market

No matter where you are in the world, you don't have to worry about being locked out. Anyone can start buying crypto no matter their region. This levels the playing field and makes it a fairer medium of exchange.

Bask in the Benefits of Investing in Crypto

There are many benefits of investing in crypto. Whatever your reason for doing so is, it's always wise to stay up with the latest news and trends. That way you can be confident in your investments.

The good news is that you don't have to do it alone. Our team at True Code Capital will work with you to determine the right crypto growth opportunities. Subscribe and join the list today.

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Last updated June 1, 2022

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