Who doesn’t know about the impact of cryptocurrency in the 21st century?
It is perhaps the biggest discovery where people got a way to diversify their finance and assets. A journey that started with a random crypto coin named “Bitcoin” has now transcended with numerous virtual currencies following suit. Cryptocurrency investing is now the call of the day with over 10,000 options lying on the table.
While there might be a flurry of options available, Bitcoin and Ethereum made for more than half of the cryptocurrencies invested in.
Polkadot is the recent emergence besides dogecoin that gained some relevance among investors. All of this sounds fun right!
However, what's the use of the idea of cryptocurrency is under the fog!
Let us first understand what cryptocurrencies are.
What are Cryptocurrencies?
An encrypted string of data that stands for a currency unit is referred to as a cryptocurrency. Blockchain network helps in the functioning of cryptocurrency and also features as the area of activities like buying, selling and associated transactions.
Unlike the other currencies of different countries, Cryptocurrencies are decentralized, thus giving no government the power to regulate them.
Comparing Cryptocurrency with Traditional Currencies
Cryptocurrency investing takes your financial profile to the next level. Here you get to enjoy unlimited liberty with your finances which seems impossible with your traditional country's currency. For most of us, our money stays at the bank.
We have to follow certain regulations and protocols to use the money, with the worst being our lack of complete access. We cannot withdraw unlimited funds from our account without answering the reasons behind it. In addition, the security systems of the banks are not at their epitome, which makes our funds vulnerable to hacking and theft.
Here, cryptocurrencies appear to be a safer option with no centralizing agency regulating their functionality. You can buy, sell or withdraw any amount you require without answering any authority looking over your actions.
Another positive point here is the higher standards of security measures. Blockchain technology helms the best security protocols that defer any third-party hacker or anti-social elements to get into the system and steal people’s cryptos and assets.
Thus, its security measures are way above any conventional bank.
Investing in cryptocurrency stocks is one of the most trending things in today’s time.
While the various investment options like mutual funds, equities, gold, etc remain static, Cryptocurrency investing is winning the market. People consider it to be a faster option to amass greater wealth with the prices rising high at any moment.
Buying and holding coins is a better option for numerous cryptocurrency experts. Holding the coins for a considerable period increases the chances for prices to gain momentum and land the investor with handsome profits.
Key features of Cryptocurrency
With a clearer idea about cryptocurrencies, it is the time to discover the features that give them uniqueness amidst the other investing options. Assessing such features will help you gain clarity before you indulge in Cryptocurrency Investing.
- Anonymous Presence in the Blockchain - When we talk about the supreme security measures of blockchain, the maintained anonymity of users is one.
- In the blockchain, every cryptocurrency transaction is reflected through a sequence of characters and not via any seller's or buyer's identity. No personal or professional data gets revealed on the platform. One of the major reasons is the high frequency of transactions on the blockchain. With millions of buyers and sellers on the blockchain platform, it becomes very difficult to keep a record of every individual. Thus, people or companies rarely get linked with their concerned transactions and facilitate easy transfer of coins and funds.
- No overarching authority or mediatory platform - Cryptocurrency transactions on the blockchain are not under the control of any international organization or country government.
- Such devoid of any overarching authority eliminates the cause for paying transaction fees, taxes or following other state-initiated rules for cryptocurrency investing. Here, the flow of cryptocurrency remains organic with the users facing no restrictions.
- High-end security - Blockchain is one of the most secured platforms that allows hassle-free buying of cryptocurrency and investments in cryptocurrency stocks. The crypto coins find their place in virtual wallets that has a private key for every individual investor.
- Such conditions emphasize that only the concerned owner has ultimate access to his/her crypto funds. In addition, the blockchain developers created a firewall where security remains at its epitome. No hacker or anti-social individual would find it easy to hack into the blockchain and steal people’s funds. Thus, every bitcoin or Ethereum remains under watch.
- Devoid of centralization - Besides India, there are no government or centralizing agencies that impose their regulations and control on cryptocurrencies. Consequently, centralization becomes difficult as it is a currency that transcends across international borders, with transactions happening from everywhere. The specific transaction data makes place across the blockchain with every individual having information about their specific investments.
- Complete control over funds - When you use cryptocurrency as your medium of transactions, you get unlimited independence. Here, you are responsible for every transaction as you helm the complete procedure with utmost swiftness. Owing to the lack of institutional barriers, you can transfer funds from one location to another at any time of the day. Cryptocurrency investing also falls under this feature where there is no need to wait for stock markets to open. The complete procedure undergoes online and allows space for your whims and wishes.
- On a course of faster development - The rapid developments in terms of the tools and services allow cryptocurrency investors and holders to get the best out of their transactions. Now, the exchange and conversion into any currency like euro or dollar from cryptocurrency is possible. Such actions happen direct via the crypto wallets, without having to wait for any other exchange procedure.
Benefits of Investing in Cryptocurrency
The features of cryptocurrency are a testimony to the underlying benefits of cryptocurrency investing. The benefits act as major catalysts to drive people into considering cryptocurrency stocks as a part of their portfolio.
- Easier Transactions - You do not have to deposit a cheque or wait in a queue to send your cryptocurrencies. A simple tap across the crypto app or platform on your mobile phone will facilitate an immediate transaction. In addition, cryptocurrencies like Bitcoin, Ethereum and Litecoin allow transactions via the Bitcoin wallet. Thus, the need for a bank account gets eliminated.
- Top-notch Security - Cryptocurrency operates on one of the most secured platforms named Blockchain. The Blockchain developers have put up a developing firewall that ensures that no hacker can percolate their anti-social activities into the area. In addition, the absence of overarching authorities makes it secure against centralizing regulations.
- Lower Fees - Various crypto platforms charge a minimal fee for crypto transactions that imposes no financial burden on the investors.
- Perfect Portfolio Diversification - With the incoming of cryptocurrencies, people have another option to diversify their portfolios. Besides investing in stocks, equities, gold or mutual funds, cryptocurrency investing facilitates opportunities for good returns.
- Higher Returns - The volatility of cryptocurrency prices opens the chance for prices to go up at any time. Such circumstances provide the investors with an opportunity to garner higher returns and make more profits.
- Freedom in Transactions - People do not have to be answerable to any centralizing authority for any transactions they make. Banks and other financial institutions have control over the finances they hoard. They have the authority to stop individuals from performing transactions or set boundaries for the same. While performing cryptocurrency transactions, there are no stipulations concerning the highest limit or individuals you can share currencies with.
- Round the clock availability - Unlike the banks and country stock exchanges, the cryptocurrency portals are open 24/7. Centralized banks and other financial institutions have their stipulated working time beyond which a needle wouldn't move. Often during emergencies, people face trouble accessing their funds. Here cryptocurrency appears as a saviour where people can withdraw or deposit their currencies at any time.
- International Payments - Cryptocurrency transactions transcend the lines of international boundaries. You can end a bitcoin from one corner to another corner of the world, without worrying about the recipient country’s currency.
Cryptocurrency appears as the future of finances and transactions. People get to enjoy supreme authority over their funds without any centralizing responsibility. Do not wait so longer and explore this enticing area of financial growth.