Why Invest In Cryptocurrency? – What You Should Know
More and more people get interested in entering the cryptocurrency market. With the economic impacts caused by the recent pandemic, people are continuously looking for opportunities to grow their money. Why invest in cryptocurrency - you might have asked this a million times.
In this article, we will tell you how the cryptocurrency has performed even in the most uncertain times of the pandemic. Get a glimpse of the easiest methods to gain profit through cryptocurrency investing.
Market Performance and Projections
The year 2020 has given the world the most unpredictable scenarios. Despite this, the blockchain and cryptocurrency market has continued to advance, develop, and grow. The resilience shown will leave you a solid answer to why invest in cryptocurrency.
New players are coming in. Powerful innovations are coming into the landscape. With the emergence of new technical concepts, there is still a large amount uncertainty shadowing the blockchain economy. But none of this is predicted to cause the crypto market to die in the next couple of years. Instead, these changes are to create a more dynamic marketplace which will provides new opportunities for investments to grow.
Bitcoin is predicted to gain more in 2021. No plateau in its value is projected. Blockchain will expand beyond financial services and might pave the way to the inception of a new technology that will shake the norm, just like what internet did.
With the cryptocurrency market continuously expanding taking over certain crucial niche in affecting the world’s economic landscape, you must have been really considering the question: should I invest in cryptocurrency? With the next part of this article, we will show you concrete ways to gain profit in this field.
Means to Grow Cypto Investment
For beginners, the vagueness of the concept governing cryptocurrencies and the blockchain technology might be their first reservation in entering the field. We concede that the science and technological principles are complex to be discussed in this article. What we can do, however, is to give you concrete ways on how you can grow your money and ultimate answer why invest in cryptocurrency. The methods that will be discussed below are handpicked based on the easiest ways to gain profit in this market.
Long-term investing is a passive way to make money in cryptocurrency. You will just have to rely on your cryptocurrency investment to appreciate value within a long period of time. Sure, there are fluctuations in the market in a daily basis. Buy if you will make a good crypto choice to invest in, you will have a positive net gain and grow your capital.
Cryptocurrency investment has gained popularity because of its growth in value. In 2011, Bitcoin value was just 32 USD at peak. For the year 2020, they are valued at around 20,000 USD. Financial experts project that they can reach up to 50,000 USD. These numbers might be exactly what you need to answer why invest in cryptocurrency.
If you are not necessarily into long-term investments, then you may look at trading as another reason to answer why invest in cryptocurrency. Albeit the higher risk, traders has the potential to exponentially grow their money in a shorter period of time. Trading is simple a buy-and-sell method. Crypto assets undergo ebbs and flows in a daily or weekly basis. The goal in trading is simple: once you have a cryptocurrency, you will be constantly looking for windows of opportunity to sell them in higher values. True, a single buy and sell cycle might not give you that much gain but accumulating constant gains can result to your target growth.
Of course, traders do not win every day. Remember that the goal is not to win all the time, but to have more wins than loses. Day trading is a skill. It makes take some time for you fully get comfortable around its loops. But if you are looking to put more work to grow an investment, this one will suit you well.
Staking is the counterpart of bank interests in the cryptocurrency arena. The principle is quite simple: you gain rewards by locking in a minimum amount of digital assets. That is why this can be considered as another way to earn passively.
Does this sound too idealistic for you? Well, it is not. Your locked-in digital assets is used to help maintain the blockchain system, thus, they won’t be needing an even more powerful hardware technology to maintain blockchain’s security and decentralized consensus. It allows the creators to save cost. The system will randomly pick which investor to give rewards to from time to time. Higher locked in values means higher chances to be chosen.
Airdrops and forks
You might not believe it but investing in cryptocurrency can help you grow money just by winning raffles. Airdrops and forks are free tokens that serve as the crypto creators’ marketing strategy. They are usually released to promote awareness and higher demand for a project. When a blockchain forks, they essentially do upgrades in a protocol to create new coins. If you are a coin holder in the original chain, you can then receive free tokens on the new network.
Albeit getting airdrops and forks is highly dependent on luck, some investors still gain a lot through this. Learn more about cryptocurrency investing here!
There is no stopping the cryptocurrency market from growing. The pandemic has just helped prove this point. The crypto landscape continues to grow providing a tremendous number of opportunities to invest in. Expert has been firmed with their prediction that within years, the blockchain technology will expand from providing financial services to being the foundation for innovations that will strongly influence the way we do our daily lives.
The worst critic in the cryptocurrency market is the vagueness of its concept. But hey, you do not have to be a genius and understand it detail to make money. What matters is you know how your cards and the risks you are taking. Are you still asking why invest in cryptocurrency? After the facts that we have provided, we dare answer, why not? Indeed, the best time to start a crypto investment is now.
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