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9 Ways Crypto Investments can Help Reach Financial Security

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With a total market cap standing at $1.76 trillion, crypto investments have the potential to bring a level of financial security that traditional investments cannot match. 

They are more secure and private in comparison to traditional investments —because digital assets are encrypted and cannot be traced or counterfeited easily. 

Moreover, the transactions are decentralized, which means that no individual has control over them, not even the government. This means that investors are less vulnerable to manipulation, fraud, and other malicious activities. 

Crypto investments also have the potential to provide a hedge against inflation and other economic risks, providing a certain level of stability in times of economic uncertainty.

As the idiom goes “Don’t put all your eggs in one basket” — crypto investments can offer a diverse portfolio for investors — opening up potential opportunities to make more money with very little risk involved.

Go with the best crypto investment — buy Bitcoin!

There are thousands of cryptocurrencies floating in the market, but Bitcoin is the most popular type of cryptocurrency of all and has the highest liquidity in the cryptocurrency industry. 

Here are some reasons why you should buy bitcoin;

  • Bitcoin is the original and the largest cryptocurrency that has ever existed and has been known to produce high returns for investors who plan for long-term returns.
  • The maximum number of bitcoins that can be mined is 21 million. For that reason, bitcoin will become an even more valuable asset as demand for it increases.
  • Bitcoin is fully decentralized. Meaning it is not regulated by the government or financial institutions, which adds to its appeal.
  • Anyone can sell or buy bitcoin by just sharing relevant information as per their preferred payment methods. 

Note: Any decision to invest in bitcoin (or any other asset, as a matter of fact) depends on an individual’s specific financial goals and circumstances. It is crucial to thoroughly research and consider all factors before making any investment decision.

9 ways that crypto investments can help investors reach financial security

Here are 17 ways that crypto investments can help investors reach financial security:

1. Offer faster access to capital

Cryptocurrencies let investors transfer funds directly, bypassing banks and other payment processors. With incurring low transaction fees, these transfers settle almost instantly. Additionally, crypto users are not subject to the same restrictions that they would be with traditional banking systems. This provides greater access to capital and allows businesses to act quickly and seize the right opportunities.

2. Creating a diversified portfolio with a low entry cost

Cryptocurrencies are not associated or interconnected with the stock market, and that makes them an appealing option for investors looking to scatter risk and lessen volatility. 

Moreover, many cryptocurrency projects have low or no minimum investments, enabling investors to spread their capital over a variety of projects. This enables investors to diversify their holdings and reduce the overall risk of their portfolios.

3. Access to global markets

Cryptocurrencies offer global access to markets because they are not bound by the laws, regulations, or constraints of any particular country. 

Transactions are conducted on a peer-to-peer basis, without the need for middlemen such as banks or governments. 

This makes international transactions easier, faster, and cheaper, allowing businesses, investors, and consumers to access global markets with minimal disruption. 

Cryptocurrencies are also highly liquid, meaning users can instantly convert them into other currencies, making them accessible even in countries where traditional banking solutions may not be available.

4. Higher rate of return

Crypto offers some of the highest returns of any asset class — typically in the range of 10-50%. 

In fact, as per a peer-reviewed book by IntechOpen, “Cryptocurrency returns have averaged a level equal to roughly 20 or more times those of conventional currencies or equity investment.” 

This is because of its high volatility, which means that prices can move quickly and drastically. Crypto also has more potential for exponential growth than traditional assets. 

However, since it is still a nascent technology compared to more established markets, and so has more room to grow. Finally, because of its decentralized nature, it is more open to new entrants and new technologies — which can create additional opportunities for higher returns.

5. Transparency of transactions

Crypto ensures transparency by creating a distributed and immutable ledger of transactions. 

This ledger is shared among all the participants in a blockchain network — that lets every user view as well as verify all the transactions that have taken place. 

Since each transaction is cryptographically signed — users can be certain of the authenticity of the transaction data. 

Furthermore, as the ledger is continuously updated and secured with cryptography, users can be sure that it is accurate and up to the minute.

6. Protection from market volatility

By investing in alternative assets that have distinct features from traditional investments – investors can automatically protect themselves from market volatility.

Investors can retain value in a digital form without being subject to the same risks linked to traditional markets. That’s another benefit of investing in crypto!

Moreover, numerous cryptos have an integral system of deflationary economics – meaning that the number of coins that are accessible becomes scant over time, thereby creating a deflationary environment. 

This deflationary environment in turn helps to protect a cryptocurrency’s value from market volatility in the long term.

Per Ziglo, “Another option for avoiding crypto volatility and protecting yourself during a market dip is to convert some of your (potentially volatile) crypto holdings for stable-value assets. Stablecoins are a type of cryptocurrency linked to a fiat (stable) currency, such as the US dollar – or even gold.”

7. Increased control over investments

Contrary to traditional investments — cryptocurrency provides the investor total ownership of their funds — enabling them to store, send, and receive funds without relying on a 3rd party to expedite the transactions. 

This direct control over their funds allows investors to make their own decisions. Crypto also offers full-fledged transparency and flexibility. Any changes to the network or the cryptocurrency itself are visible and auditable by all participants in the network. 

8. No requirements to disclose investor identity

The best part about investing in crypto is that there are no explicit requirements to disclose investor identity when investing in cryptocurrency, however, bitcoin transactions can be traced given their transparency enabled by distributed ledgers. 

Moreover, investors will still need to disclose their identity when it comes to exchanging different types of coins or when registering an account with a crypto trading platform, exchange, or wallet.

9. Access to new asset classes

Crypto grants access to emerging asset classes, like NFTs; that have the ability to revolutionize the way people think about asset ownership, transfers — and trading. NFTs (or non-fungible tokens) are cryptographic tokens that denote unique digital assets — like artwork, music, or recordings. These tokens are stored on the blockchain, giving them an immutable record that is protected from alteration. While NFTs are still in nascent stages, however, they do promise to transform the way digital items are bought and sold. 

5 tips to invest in crypto as a beginner

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  1. Educate and research: Before you begin investing in cryptocurrencies, take the time to learn about the technology behind it and how it works. You should also familiarize yourself with the different types of coins that are available and the projects they are associated with. Moreover, investing in something without researching it is never a good idea. Make sure you research the team behind the project, the use cases, and the technology before investing.
  1. Set realistic and achievable goals: Have realistic expectations and set goals that you can achieve. As with any other investment, setting a specific goal can help guide you in setting up a successful portfolio.
  1. Start small: Start with a small investment. This allows you to make mistakes without risking too much. Once you gain some experience — you can slowly increase your investment.
  1. Learn about various exchanges available: Read up on reviews before financing an exchange. Check out different exchanges to find the one that offers the features you need. For example, low trading fees, and AES-256 block-level storage encryption.
  1. Diversify as much as possible: Don’t just invest in one type of cryptocurrency; instead, diversify your portfolio. Invest small amounts in different types of coins to reduce your risk. 

But, as good advice, start with investing in bitcoin as it is the safest and the most popular type of asset class. 

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