What is investment?
An asset or thing purchased with the intention of generating income or appreciation is referred to as an investment. The term “appreciation” refers to an asset’s value increasing over time. When a person buys something as an investment, the goal is not to consume it, but to utilize it to produce wealth in the future.
What is Cryptocurrency?
Something that has been in trend for these past few years, cryptocurrency. What is it? A cryptocurrency is a digital or virtual currency that is protected by encryption, making counterfeiting and double-spending almost impossible. Many cryptocurrencies are built on blockchain technology, which is a distributed ledger enforced by a global network of computers.
What are the advantages of investing in cryptocurrency?
Investing itself in general offers you a lot of benefits; be it investment in stock market, investment in gold, investment in cryptocurrency, investment in business and so on. But, in this article, I will be sharing the advantages that you can get from investing in cryptocurrency.
1. The market hour
Just like online shopping, investing or trading in cryptocurrency gives you a hundred percent access from anywhere you are, anytime you want. It is always available 24 hours per day and 7 days per week, without rest. Cryptocurrency transactions take happen on cryptocurrency exchanges all around the world, between individuals. There may be periods of outage while the market adjusts to infrastructure upgrades, known as ‘forks.’
2. Strong security
Most of the cryptocurrency systems are based on Binance Smart Chain Foundation, it offers you complete transparency on the transaction that you are making. Don’t be scared if you have ever heard rumours about Doge mama scam (one of the crypto coins) because that is not something that should make you doubt investments. Once a bitcoin transaction has been authorized, it cannot be reversed, unlike credit card companies’ “charge-back” transactions. This is a safeguard against fraud that necessitates a written agreement between the customer and seller on reimbursements in the case of a mistake or a return policy.
3. Improved liquidity
Liquidity refers to how fast and readily a cryptocurrency may be exchanged into cash without causing a price drop in the market. Liquidity is crucial because it allows for better pricing, quicker transaction times, and greater technical analysis accuracy. Because transactions are distributed over several exchanges, the cryptocurrency market is considered illiquid, which means that even tiny deals may have a significant influence on market values.
4. Easy international trading
Cryptocurrencies are not subject to exchange rates, interest rates, transaction fees, or other taxes imposed by a centralized government, regardless of the fact that they are generally acknowledged as legal money on a national level at the moment.
Cross-border transfers and transactions may also be carried out utilizing the peer-to-peer method of blockchain technology, which eliminates issues such as currency exchange swings.
Cryptocurrency volatility is part of what makes this market so fascinating. Rapid intraday price swings can provide traders a variety of opportunities to go long and short, but they also carry a higher risk. So, before you dive into the cryptocurrency market, make sure you have done your homework and devised a risk management plan.