It is estimated that there are now over 300 million people in the world using cryptocurrency. This growth is down to the many benefits investing has for diversifying your portfolio. But do you know what they are?
If not then we are here to help. Read on as we discuss the benefits of investing in crypto.
1. Huge Growth Opportunites
Investing in crypto has huge growth opportunities. Every day stocks and shares will provide a moderate return if you buy and hold. You may be able to make a profit fairly quickly if you are good at what you do and watch the markets, but it is rarely the amount you would get from crypto. swyftx.com allows me to transfer funds internally without incurring expensive bank charges. It’s also a great and easy platform to trade currencies.
Like any investment, this comes with a risk. New currencies emerge all the time and can see huge hikes in value while others can sink without a trace.
You may also consider well-known currencies like Bitcoin and Ethereum. Buy them at the right time and they still have huge growth potential. You can buy Polkadot and other cryptocurrencies at the exchange here.
The many different types of cryptocurrency are not linked to any traditional financial institutions. They operate on a decentralized ledger, meaning nobody controls the records. Instead, they are shared openly across several different systems.
You will find that the value of your crypto is not linked to fiscal policies, recessions, or the price of oil or gold. Instead, they are dictated by supply and demand. It becomes one of the best ways to invest as it gives you a unique way to diversify your portfolio.
3. 24 Hour Trading
Investing for beginners can be tough if you are not in the same timezone as your chosen stock market. For example, if you want to track US stock but are in Asia it can be tough. As different markets open and close at different times you need to invest a lot of time.
Crypto trades 24 hours a day. You can invest in the middle of the night or early morning. The only time you can not is when the system is upgrading and has scheduled downtime.
4. Short Processing Time
Crypto transactions are all peer to peer. When a transaction is made it happens between you and the other person. There is no financial institution acting as a middleman, slowing the process down.
This means transactions are fast. You can have them done within a matter of seconds.
Even Bitcoin ATMs are proving their speed and efficiency, so you can take money from one fast and without fuss. All of this provides you with an asset that is easy to convert into solid cash if and when you need it.
Benefits of Investing in Crypto Explained
Now that you know the benefits of investing in crypto, allocate a budget. Decide on the level of risk you are willing to take. Then either buy an established currency or invest in a new one.
If you found this article helpful, we have many more. From property to stocks, we can help with your investments in the coming year.