Cryptocurrency is the new bubble in the world of investments. Many investors are joining the bubble as it is rising rapidly. But the majority thinks the bubble will burst someday. Investors are very skeptical towards investing in cryptos as they lack the proper understanding of what it is? When it comes to investing their hard-earned money, investors tend to choose those investment alternatives which are less risky and provide good returns.
Although cryptocurrencies are a bit risky like any other investments, they have performed phenomenally well and provided exceptional returns in past. Immediate Edge will bring out the benefits of investing in cryptocurrencies.
- Impressive Returns
Cryptocurrencies are relatively new in the trading market but they are very popular because of their profitability as compared to other investment avenues. For example, let assume you hold stock from any high-performing US company. How much return do you expect? 10-15% return or a maximum 20% return would be considered as a very good result.
But cryptocurrencies reflect huge fluctuations in their prices in a very short period. The higher the risk, the higher would be the gain. Cryptocurrencies are risky- as high gains are never guaranteed. Investors often lose their hard-earned money because they get allured with high profits and overlook the risk and invest without any definite strategy.
- Independent Alternative
When big investors in the market predicted that the stock market would crash in 2020, cryptocurrencies proved to be a safer alternative as compared to other traditional investment options. Some theories were propounded on how cryptocurrencies would perform in case of any stock market crash. Cryptocurrencies were themselves developed in response to a stock market crash.
Some experts believe that they will survive the crash, whereas a pessimistic view towards cryptocurrencies suggests that, they will be negatively affected just like any other stock.
- Your money is your money
Cryptocurrencies offer a great level of autonomy to the investors as compared to other investment options available. When you deposit your money in banks, you are somehow dependent on other people and organizations. Some sort of restrictions or limitations are imposed by banks on the money which is rightfully yours and you cannot help it. Even there is the risk of bank robbery or bankruptcy.
But in the case of cryptocurrencies, your money is only yours and will stay with you always and forever. There are neither any restrictions imposed by any financial institutions for holding and transferring it nor you must pay any unreasonable transaction charges. Cryptocurrencies are a step towards achieving an open and decentralized economy in their true sense.
- High Liquidity
One of the most prominent factors of consideration for any investment opportunity is its liquidity. Liquidity can be understood as, how easily the investment can be converted into cash as and when required. According to immediate edge, a liquid investment is easy to trade in the market at a price close to its market rate.
As far as cryptos are concerned, they are highly liquid. One can easily buy and sell them from any reputed and credible trading platform
Investing money is not easy as it seems to be. Whether you are investing in stocks, bonds, or any other kind of asset, investments are complicated and time-consuming. Many investment opportunities have huge entry and exit costs like investing in real estate.
Investment in cryptocurrencies is relatively simple and less time-consuming. One need not deal with the hassles of any institutions, papers, or bank visits. You simply need to create your account on any trading platform and get started.
Investments which offer high returns are often high on risks. Prices of cryptocurrencies tend to fluctuate significantly as compared to other traditional investments. If you are not familiar with the volatile nature of cryptocurrencies, chances are that you will end up losing your time and money. It is always advisable to invest in cryptocurrencies for the long term- as short-term losses will be set off by long-term gains. The risk involved in trading cryptocurrencies is traded off by the degree of autonomy it provides to the investor.