Did you know that an estimated 1 billion people worldwide are using crypto? A huge percentage of that figure is concentrated right here in the U.S., with around 46 million Americans having invested in Bitcoin alone.
If you’ve never invested in crypto before, or if you’re wondering whether you should hang onto your current investments, you might be on the fence. After all, why should you put money into these virtual currencies? What are their advantages over traditional cash and investments?
We’ve put together a brief guide to help you invest in cryptocurrency in 2022. Read on for more.
Transactions Are Easier Than Ever
Though transferring cryptocurrency was once a more complex process, it’s easier than ever to send and receive crypto today. Whether you prefer to use a smartphone app or a physical hardware wallet, you can make a transaction instantly.
Even better, certain cryptocurrencies make transactions even more straightforward. Many major brands now accept Bitcoin and other cryptocurrencies as payment. In addition, you can even use a Bitcoin ATM for transactions with a variety of currencies.
It’s More Secure Than Traditional Currency
Using decentralized cryptocurrency means that your payments are always secure. This is especially true of cryptos with high hash rates, such as Bitcoin. However, even other types of crypto carry the protection of blockchain technology.
Crypto is also safe in another way: no bank or government can manipulate it. Regardless of a financial institution’s failures or the chance of political or civil unrest, no one can remove your money. Essentially, you are your own bank.
You Could See High Returns
Though the price of Bitcoin and other cryptocurrencies have risen and fallen in past years, investors always have the possibility of seeing high returns. As a classic case, Bitcoin got its start with each coin valued at less than a penny, but it rose to a valuation of tens of thousands of dollars during its lifetime.
That volatility can feel like a disadvantage for some investors. However, it’s perfect for younger investors and those who don’t mind high-risk but smart investments with a chance of paying off.
It Diversifies Your Portfolio
Crypto investments are a great way to diversify an existing portfolio. This is because these currencies often function independently of the market. For traders who already work with stocks, ETFs, and bonds, having an investment in a non-correlated asset class can help.
Note, however, that there’s some overlap here: in 2021, the first Bitcoin ETF launched. In other words, investors can now invest in Bitcoin without truly owning a single unit, making it a good first step for anyone wanting to ease into the world of crypto.
Invest in Cryptocurrency Today
Though digital currencies have plenty of additional benefits worth noting, the points above are some of the best reasons to invest in cryptocurrency in 2022. Whether you’re looking to diversify your portfolio or make use of decentralized transactions, the right crypto can help!
Looking for more ways to stay on top of the latest online trends? Our other posts are filled with helpful insights, so check them out to learn more.
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