The birth of bitcoin in 2009 opened the door to the possibility of investing in an entirely new type of asset class – cryptocurrency. It entered space very early.
Intrigued by the huge potential of this young but promising asset, they bought cryptocurrencies at cheap prices. Accordingly, in 2017 they became millionaires/billionaires. Even those who did not invest much made a decent profit.
Three years later, cryptocurrencies still remain profitable, and the market is here to stay. You may already be an investor/trader or you may be thinking of trying your luck. In either case, it makes sense to know the benefits of investing in cryptocurrencies.
Cryptocurrency has a bright future
According to a report called Imagine 2030, published by Deutsche Bank, credit and debit cards will become obsolete. Smartphones and other electronic devices will replace them.
Cryptocurrencies will no longer be seen as outcasts, but as an alternative to existing monetary systems. Their advantages, such as security, speed, minimal transaction fees, ease of storage and relevance in the digital era, will be recognised.
Concrete regulatory guidelines would popularize cryptocurrencies and encourage their adoption. The report predicts that there will be 200 million cryptocurrency wallet users by 2030, and nearly 350 million by 2035.
An opportunity to be part of a growing community
WazirX’s #IndiaWantsCrypto the campaign recently completed 600 days. It has become a huge movement supporting the adoption of cryptocurrencies and blockchain in India.
Also, the recent Supreme Court judgment overturning the RBI’s ban on crypto banking from 2018 has instilled a new surge of confidence among Indian investors in bitcoin and cryptocurrencies.
The 2020 Edelman Trust Barometer report also points to the growing faith people have in cryptocurrencies and blockchain technology. According to the findings, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say the impact of cryptocurrency/blockchain will be positive.
By being a cryptocurrency investor, you become part of a thriving and rapidly growing community.
Increased profit potential
Diversification is an essential rule for investments. Especially in these times when most assets have suffered heavy losses due to the economic difficulties caused by the COVID-19 pandemic.
While investing in bitcoin has returned 26% year-to-date, gold has returned 16%. Many other cryptocurrencies have registered triple-digit ROIs. The stock market as we all know has had a bad performance. Crude oil prices fell below 0 in April.
Including bitcoin or any other cryptocurrency in your portfolio would protect the value of your fund in such uncertain global market situations. This fact was impressed by billionaire macro hedge fund manager Paul Tudor Jones when he announced plans to invest in Bitcoin a month ago.
Cryptocurrency markets are on 24X7X365
Unlike normal markets, cryptocurrency markets work 24 hours a day, every day of the year without getting tired. This is because digital currency systems are essentially designed using pieces of software code that are protected by cryptography.
The operational plan does not involve human intervention. So you are free to trade cryptocurrencies or invest in digital assets whenever you want. That’s a huge benefit! Cryptocurrency markets are very efficient in this way.
For example, Bitcoin has successfully processed transactions with 99.98% uptime since its inception in 2009.
No paperwork or formality required
You can invest in bitcoin or any other cryptocurrency anywhere and anytime without any unnecessary conditions.
Unlike conventional investment options, where an absurdly large amount of documentation is required to prove yourself as an ‘accredited investor’, crypto-investing is free for all. In fact, this was the goal behind the creation of cryptocurrencies. Democratization of finance/money.
To buy any cryptocurrency at WazirX, you need to open an account for which you just need to provide some basic information including bank account details. Once they’re confirmed, within a few hours, you’re good to go.
Sole investment ownership
When you buy bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction takes place in an equal arrangement.
Unlike bonds, mutual funds, stockbrokers, no third party ‘manages your investment’ for you. You decide to buy and sell, whenever you want.
User autonomy is the biggest advantage of the cryptocurrency system that provides incredible opportunities to invest and build a corpus on your base capital ‘independently’.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and compelling enough to start your crypto investment journey.