If you’re thinking of pursuing investment in cryptocurrency, you are most certainly not the only one. After all, Americans made more than $4 billion in profit from crypto investments last year alone, thanks to an unprecedented surge in crypto popularity. However, if you are looking for reasons to invest in cryptocurrency, it is important to look beyond the booming market of the past year. After all, crypto is inherently volatile.
It is, therefore, never a guarantee that you will make a substantial profit on your investment. Instead, you need to look at the wider range of cryptocurrency benefits in order to learn how to invest in cryptocurrency more effectively. For this, we have got you covered. Read on to learn more.
Volatility Can Be a Good Thing
When it comes to cryptocurrency investment tips, many critics are quick to decry the inherent volatility of bitcoin and other crypto-assets as a universally bad thing. However, this is not the case. We all need a degree of volatility in our portfolios, is it allows us to augment our low-risk investments with some high-risk, high-reward investments.
This is why many savvy investors recommend allocating risk capital to volatile investments such as bitcoin. An element of risk is essential for any long-term portfolio, which is one of the key cryptocurrency advantages.
We All Need a Hedge Against Inflation
One of the most popular uses of bitcoin in the current economy among large investors is that it acts as a hedge against inflation. But what does this actually mean? In a world of accelerating inflation, money is losing its value fast. The more central banks and governments print money, the less than the cash in your bank account is worth.
Bitcoin does not have this problem. Due to the limited supply of bitcoin in existence, it can never be devalued by inflation. This makes bitcoin specifically one of the most effective hedges against inflation. Since inflation is something that affects the value of all of our cash, it is essential that you include an effective buffer against this phenomenon in your portfolio.
Buying and Selling Crypto is Easier Than Ever
One of the main cryptocurrency benefits for new investors is that it is easier than ever to buy and sell. For example, all you need to do is search for a bitcoin atm machine near me to instantly find hundreds of ATMs that allow you to buy and sell as much bitcoin as you want at market prices.
Gone are the days where you would have to undergo rigorous setup and approval processes before you could even purchase a single dollar worth of bitcoin. As the market and demand for crypto continue to grow exponentially, expect the barriers to buying to be reducing ever further.
More On Investment in Cryptocurrency
Investment in cryptocurrency is not for everyone. After all, it takes a significant degree of market insight to understand exactly when to buy and when to sell. For this, we have got you covered. Make sure to check out our latest Finance guides to find the very best crypto guidance you can trust.