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Benefits of Cryptocurrency Investment - An Easy Explanation

By Abu Hena Mostofa Kamal -- Sunday, 30 Oct, 2022
benefits of cryptocurrency investment

Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. In addition, cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. This makes them an ideal investment for those who believe in blockchain technology and Cryptocurrency's potential.

Top Benefits of Cryptocurrency Investment

Cryptocurrency as an investment is becoming popular day by day. However, before investing in Crypto, you should know whether Cryptocurrency provides the investment benefits you need.

Below are the tops benefits of cryptocurrency investment you need to know before making any investment decision.

1. Transaction is easier than traditional banking

Money transaction is not easy in many cases of traditional bank transactions. But in Cryptocurrency transactions, the process becomes easier. You can make your private transaction at a lower cost. Software, hardware, or exchange wallet can be used for currency transactions.

Traditional Banks have limitations in money transactions. But there is no limitation for Crypto transactions. So you can send any amount of crypto money anytime from anywhere. This is a big reason for investing in Crypto for many investors.

Using a smartphone or computer, one can keep Crypto without worrying about any bank account. 

You can convert your cash to Cryptocurrency easily through any crypto exchange. 

2. Transparent and Secure System

Cryptocurrency is secured with blockchain technology. This blockchain technology makes Crypto a decentralized currency. That is why Crypto is almost impossible to manipulate or alter. This gives crypto users a great advantage.

If one makes a crypto transaction, it keeps a record in a permanent public ledger without revealing identity. Anyone can see these records. This increases investors' transparency as they can measure a company's financial condition from these transactions. Another benefit is that any crypto holder can join the financial market with any broker.

Many governments are now recognizing Crypto as an asset and giving protection from fraud.

3. Short Processing Time and Low Fees

Traditional banking takes time for significant money transactions as they must manually verify the users. This is a hassle if you need money quickly. Buying and selling Crypto takes a shorter time than traditional banking. For emergency transactions of big money, it's better to use Crypto as it uses a peer-to-peer transaction process.

Moreover, a crypto transaction cost is lower than bank money transactions as it does not need any third-party medium. This also makes the process secure.

4. Exponential Growth

The cryptocurrency market is growing so faster. The total crypto market is around 930 million. However, many people have yet to realize the power of investing in Crypto. Many of them only invest in the top two cryptos, Bitcoin and Etherium, because they are more stable than others. But there is enormous potential for other crypto coins, too, so one can invest there too.

5. Big Return

Higher return potential is one one the primary benefits of Cryptocurrency. The Crypto market is so volatile. But traders can get benefit from it. Recently, we have seen so many ups and downs in cryptocurrency value. But overall, the market has grown up. Many crypto coins have lost the call. But many have risen at a significant value.

From the following graph, you can see how Bitcoin's value has changed over the period. This type of value change in Cryptocurrency allows traders to get a significant return.

bitcoin market summary

Source: www.google.com/finance

6. Privacy of Crypto Profile

Privacy is a great concern for everyone, especially when it involves money. Cryptocurrency gives high privacy to its users. Privacy issues arise primarily because of the crypto users, not because of the blockchain system.

The public ledger only records crypto wallet addresses for all transactions, so identifying one is impossible. But if you provide information about yourself and your wallet, your identity will only be exposed. And if someone gets to access your devices or hardware wallet, only then, they can get access your account. So that's how you make your crypto profile vulnerable.

7. Portfolio Diversification

Cryptocurrency allows for diversifying the investment portfolio. Investors usually invest in traditional share markets and bonds. But now they can also invest money in Cryptocurrency. So, if one type of investment portfolio goes down, there is a chance that others will go up. This investment strategy reduces financial risk.

The Crypto market has a risk because of its volatility but also has the potential return possibility.

8.  Avoid Inflation

Many economists believe that more usage of Cryptocurrency can reduce inflation. The main reason inflation happens is when the central bank prints more money than assets. As a result, it reduces the money value. But cryptocurrency capital policy can help to mitigate this issue.

For example, Bitcoin supply is limited and known. They create policies that help to protect citizen savings. If all the crypto coins follow this kind of policy for people, then it's possible to avoid inflation. People will feel more interested in investing in Crypto and getting benefits.

If you invest in cryptocurrencies, you can protect yourself against market volatility. This means that you won't lose money due to fluctuations in the currency's value.

9. No Geographical Restriction

One of the best benefits of Cryptocurrency is that it has no geographical border. Anyone from any country can send or receive Crypto without any hassle. Traditional banks and financial institutions take longer times and have hefty fees. Moreover, they may have restrictions on the amount and location.

Many countries still need to make it legal to use Cryptocurrency. But you can still send or receive money from that country. All it needs is your device and internet access.

Top Benefits of Cryptocurrency Investment

10. Financial Inclusion

Another exclusive benefit of Cryptocurrency is that anyone can participate in this digital currency system. You do not have to take permission from banks or financial institutions. That means uncountable people can join this system with their smart devices.

Every citizen can get the same access and benefits from the crypto financial system. This helps to build equality and harmony in society.

The power of the bank is now yours with Crypto.

11. All-time Open Market

Traditional financial markets like share markets, financial institutions, or banks have their own business time. These organizations are usually closed on holidays. So, investors have to wait for opening days and working hours.

But the Crypto market is always open for operation, and everybody can engage with this market. One can trade crypto when there is power, the internet, or smart devices. So, a crypto market is a place that does not sleep, and anybody from anywhere at any time can trade how much they want without any intermediary.

12. Early Adoption

Traditional banks and financial institutions usually need more time to update the working process and system. On the other hand, Crypto has good competition in the market. Cryptocurrency projects always try to evolve with new technology to become more efficient.

There was a concern about whether people accept Crypto for daily transactions or ignore this new digital currency. Now, every industry is accepting this. Companies like Microsoft and PayPal are accepting Crypto. So, it is a matter of time before people accept Crypto and use it daily.

13. Passive Income Source

Crypto is an excellent source of passive income. In recent years, the passive earning return has become higher than before. Holding Crypto for a long period is a perfect way to invest risk-free. But there are better ways now than this.

You need to know about stacking, farming, mining, and lending strategies. There are also many affiliate programs for earning Cryptocurrency. You can pick the suitable ones.

Conclusion

In conclusion, cryptocurrency investment can be a great way to make a bright future financial condition. Investors can make a significant return on their investment by taking advantage of cryptocurrency mining, investing in blockchain projects, and watching the price of cryptocurrencies. The advantages of Cryptocurrency are enough to attract people to invest in it. Obviously, we all want transactional freedom and security, and Crypto provides that benefit. But you should always find your required benefits where you are investing.