Top reasons to invest in cryptocurrencies

Lizzy Murray

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Adoption of cryptocurrencies is on the rise ever since the 2017 bull run and despite the current bear market trend, cryptoassets are still the most profitable type of asset that’s ever existed. If you need some good reasons to invest in cryptocurrencies you might want to check out some of the stats below.

Blockchain technology has fueled the creation of powerful cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, Dash, and others.

Top reasons to invest in cryptocurrencies

Truth be told before cryptocurrencies existed, there was no valid alternative to traditional fiat money so if that’s something you’ve been waiting to appear, you should definitely consider investing in crypto.

1. Decentralized & secure

Most cryptocurrencies, including popular ones like Bitcoin and Ethereum have a decentralized architecture which means they are powered by a crowd and don’t depend on a single entity or individual which also makes them uncensorable.

Regarding security, blockchain technology and cryptography is what makes cryptocurrencies secure. It’s also worth mentioning the cryptoverse is rapidly evolving and some networks such as Dash also have a strong focus on privacy.

To give you a taste of what decentralization means take a look at this chart showing Bitcoin’s node map across the world:

Source: Bitnodes.com

With over 10,000 nodes that have Bitcoin’s ledger stored this network and the associated cryptocurrency is not possible to censor.

2. Still relatively unknown

Yes, many people have heard at least about Bitcoin if not about other crypto assets as well but most have no idea how they work and for this reason, they don’t even consider investing in them.

The media is heavily promoting crypto these days which is why you might be under the impression that lots of people are investing in it but the truth it’s still the early days. According to a survey taken back in March, 2018, only 8% of Americans are invested in crypto and surely that number is much lower in less developed countries.

3. Monetary sovereignty

Monetary sovereignty is the power of the state to exercise exclusive legal control over its currency, according to Wikipedia.

This means that national currencies are fully controlled by the state and let’s not forget the banks.

Bitcoin and the cryptocurrencies that followed are trying to overcome the weaknesses of the classic monetary system.

4. Faster transfers

We all know how long it can take for money transfers to complete and the amount of time can depend on whether it includes weekends, holidays and other factors. For most crypto assets, transfers are almost instant and of course, automated, which means we don’t depend on a third-party service or entity to carry out the task and the wait times are also much shorter.

Crypto also wins in the fees department with banks usually charging hefty taxes for transfers and currency conversions.

5. Inflation proof

Bitcoin, Ethereum and all the rest of the decentralized cryptocurrencies are much safer than any fiat currency at least when looking at inflation. A lot of crypto assets have a fixed supply which means they can’t be inflated like it seems to often be the case for fiat currencies.

Not to say crypto is perfect though, especially considering its volatility which is still discouraging many from the idea of investing. However, we can at least expect volatility to go down significantly once most developed countries create the necessary regulations crypto needs.

bitcoin volatility 2017-2019
Source: Coinmarketcap.com

In the meantime, volatility can be leveraged when investing once you learn the basics and let’s not forget that some crypto coins are strong regardless such as Bitcoin that was a little over $1,000 in January 2017 and now it’s still over $3,700 despite the strong bearish trend.

6. Uncorrelated asset class

Cryptocurrencies are pretty much not correlated to other types of assets that are globally traded such as bonds, stocks, index funds, and hedge funds. When investing in crypto it’s easy to move between classes.

7. Anti-banking philosophy

Perhaps banks are one of the most important motivations behind the birth of cryptocurrencies so it’s safe to say decentralized blockchain based digital assets are against banks in general hence their decentralized nature.

If you’re not a fan of banks and how they currently deal with our finances, crypto is definitely the kind of asset you should be considering for investing in.

8. Portable investment

While there are many types of crypto wallets, this asset is highly portable and easy to store especially if you opt for a secure, hardware wallet like the Ledger Nano S or Trezor.

You can even remain frugal and use a paper wallet, or if you have a good memory simply store your private key in your head. As long as you know that key and have an Internet connection you will be able to access your crypto funds regardless of where you are in the world.