Investing in cryptocurrencies has become increasingly popular, as it is an investment opportunity available to anyone anywhere around the globe. They are a highly profitable, highly volatile instrument with a certain risk factor. Furthermore, cryptocurrencies are becoming an acceptable means of payment across the globe. Blockchain technology is reliable, it cannot be faked, manipulated, or changed.
No other technology allows money to be sent from one part of the world to another without an intermediary to carry out the transaction. It is the cheapest means of sending money from point A to point B known today, and it’s also the fastest.All you need is a computer or mobile phone, and you can transact with whoever you want whenever you want within minutes. But what makes them so valuable? Their supply is limited. While central banks and governments print bank notes when they need it, cryptocurrencies are scarce. The smaller the amount of a major asset, the more valuable it becomes.
Should I consider investing in cryptocurrencies?
Anyone can make big profits by investing in cryptocurrencies. However, investing at the right time requires luck. Only those who improve their cryptocurrency investment strategy every day are sure to succeed.
Cryptocurrencies have moved from the unknown to the limelight. In recent years, the concept of physical money as we know it has evolved and has given way to digital money or so-called cryptocurrencies.
Today, the global bitcoin market has an aggregate value of more than $1.1 trillion and more and more people are attracted to invest in this new asset. Not only individuals. An electric car giant, such as Tesla, has invested $1.5 billion of its treasury in this cryptocurrency and claims that its vehicles can be bought with bitcoins, and there are already several international fund managers who are looking for ways to get their funds to invest in them. In addition, many other cryptocurrencies have sprung up.
Most profitable cryptocurrencies so far
Bitcoin currently remains one of the main cryptocurrencies with the most future, since it is a reasonable operation, because it does not have a central institution that controls the supply.
The other alternative, Ethereum, is the second currency in terms of capitalisation, its great strength is that it is in the development of applications and the use of smart contracts in the development of a large number of new tokens.It is followed by Cardano, which has achieved less profit in the last quarter of the year, but has great potential, as it is based on technology and allows faster transactions than Bitcoin. Another veteran currency is Litecoin, which seeks to reduce transaction time compared to Bitcoin.
Finally, we have cryptocurrencies that have seen their prices rise by more than 1000%, such as Solana, Luna, Avalanche, Decentraland or Uniswap, or memecoins such as Dogecoin and Shiba Inu.
Should I invest in crypto now?
Opinions on investing in cryptocurrencies remain divided among experts.
On the one hand, Bitcoin is offered as the best alternative for the future of the crypto economy, but another part considers that attention should be paid to other cryptocurrencies that make up the market and that have had a significant growth and, in some cases, more compromising than investing in Bitcoin.
If we review the growth of other cryptocurrencies such as Ethereum, you will see that it has grown in 2021 more than Bitcoin, but not only Ethereum, other cryptocurrencies such as Binance Coin, Dogecoin, Avalanche, Solana or Cake have presented higher growth in the same period. But what are the advantages and disadvantages of cryptocurrencies? What makes them so popular?
Advantages of cryptocurrencies
The use of cryptocurrencies is becoming more widespread every day, let’s take a look at the advantages they offer:
Decentralisation
Most cryptocurrencies operate in a decentralised manner, depending on their algorithm. In other words, they are not subject to regulations or under the control of governmental, banking, or financial bodies of any kind, and all users have the same rights and are equal to each other.
Low transaction costs
Transactions in cryptocurrency systems are carried out on the P2P principle, without the involvement ofintermediaries in their transactions. This makes it possible to reduce network maintenance costs, which significantly reduces transfer costs.
Speed and irreversibility
Cryptocurrency transactions are almost immediate. Additionally, the irreversibility of transactions helps to prevent record falsification and fraud in the system, thus helping to avoid potential scams.
Confidentiality
Privacy is one of the main advantages of crypto exchange. To use the system, you do not need to provide any personal details, which allows you to remain anonymous and hide your costs. Neither financial institutions or marketing companies, nor even the person with whom the transaction is being carried out, can know your identity or the amounts or terms of your transactions, unless of course it is revealed by the user himself.
You own your money
Access to the cryptocurrencies in the wallet can only be obtained by providing a private key, which only the owner has. The coins in the cryptocurrency wallet are subject only to the user and become a financial insurance.
Reliable data protection
In cryptocurrency transactions, no personal data is transferred to the seller, so you can be sure that the information will remain in your possession and will not fall into the hands of strangers.
Cryptocurrencies are not sensitive to inflation
Cryptocurrencies have a sophisticated inflation prevention mechanism. In every cryptocurrency network, there is methods allowing you to predict in advance how many coins will exist in a certain period of time.
Simple and affordable
Many people mistakenly think that cryptocurrencies are too complicated to learn and use, but this does not have to be the case. In fact, they are available to everyone, even without technical knowledge or understanding of the system. Cryptocurrencies are open and accessible to everyone, including people living in disadvantaged regions where other financial services are not available.
Risks of investing in cryptocurrencies
Cryptocurrency prices are formed without effective mechanisms to control their manipulation, such as those in the stock market. Many cryptocurrencies may lack liquidity when it comes to unwinding an investment without significant losses, especially as their circulation is very limited. The use of cryptocurrencies as a means of payment is still very limited, which contrasts with other digital developments that have been widely accepted. On many occasions, their custody is not reviewed or supervised, so the loss or theft of private passwords can mean the loss of cryptocurrencies, with no possibility of recovering them.
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