In recent years, crypto has transformed from a niche tech community into a trillion-dollar industry. An increasing number of investors and users are entering the space, and while the crypto market is still in its infancy, it will not last that way forever. Hence, individuals seeking to boost their portfolios should start investing in crypto as soon as possible.
Despite the high investment potential of cryptocurrencies, several investors are still hesitant in backing digital coins. There are various reasons for these reservations, including the perceived uncertainty of the technology or the volatility of the market. Sometimes, it is simply because crypto, as a subject, may seem daunting due to its newness and complexity.
That said, there are several reasons why cryptocurrencies are still worth investing in and at the earliest time possible. If you are still on the fence on whether you should add digital coins to your portfolio or not, reading some of the reasons below can give you a fuller understanding of why you should take that leap today.
Reason #1 – Wider Acceptance
The perception of crypto today is very different from how it was perceived over a decade ago. Before, the general public viewed crypto supporters more like fanatics obsessed over a new piece of technology. However, that is no longer the case today.
As a topic, cryptocurrency is being discussed, highlighted, debated, and accepted in many sectors of society, such as the news, businesses, the arts, and educational institutions. Several companies have also started accepting crypto as a form of payment, including Paypal, Microsoft, and Overstock. And as of writing, El Salvador has become the first country in the world to accept cryptocurrency Bitcoin as legal tender.
Indeed, digital coins are becoming more popular with each coming day. As they continue to garner acceptance in both private and public spaces, it is not difficult to imagine a world where people can use crypto for daily transactions. For example, someday, Monero users can simply take out their free XMR wallet and use crypto to buy their groceries or pay for gas. With crypto, the possibilities are endless.
Reason #2 – Improved Technology
The first crypto, Bitcoin, is well-known for introducing the first generation of blockchain technology into the world. However, like any other new form of technology, blockchain was exciting but was also not perfect. Hence, several developers and companies have invested significantly into exploring it and adding new features.
To illustrate, Bitcoin transactions are only pseudo-anonymous. Details of a transaction are still visible on a private ledger, which some users feel could still be improved. Thus, crypto developers introduced privacy coins into the market to address this issue. Monero, for example, uses ring signatures, RingCt, and stealth addresses to ensure that all transactions are completely anonymous. Meanwhile, some financial institutions are working on developing stablecoins to address the volatility of the crypto market.
Clearly, there are significant advancements in the realm of crypto and blockchain technology. As more developers work on building their infrastructure, users and investors can expect to see more remarkable developments in the industry in the upcoming years.
Reason #3 – Exponential Growth
The numbers speak for themselves. One Bitcoin cost practically nothing when it was first released in 2009, and as of January 2022, it now costs more than US$36,000 each. The growth was exceptionally exponential. True, the cryptocurrency went through a lot of steep ups and downs across the years, but the digital coin pulled through. And it is the case with several top and rising cryptocurrencies.
Investing in crypto today could potentially offer you multiplied returns in the future. While not everybody becomes a millionaire in crypto investment, you can still profit significantly if you time your investment correctly and pick the right coin to back. In this manner, you can reach your financial goals and make the most of your initial investment.
Reason #4 – Funding the Future
Crypto’s humble beginnings began with a simple dream. The creator of Bitcoin, Satoshi Nakamoto, envisioned a world where there are no third-party intermediaries (e.g. banks, financial institutions) that add extra costs to end-users in financial transactions. While the realization of a decentralized transaction system still feels far off, the world of crypto is quickly evolving, and a future where cryptocurrencies are as accepted as cash might just be close at hand.
Investing in crypto makes you an active participant in this full-steam embarkment toward a more hopeful future. While nobody can for sure say where crypto can go, that is part of the process of exploring unknown territory. As such, make sure to conduct in-depth research first on all your crypto prospects. In this manner, you can apply risk management and ensure that you are backing a digital coin that is not only potentially profitable, but also something life-changing as well. Thus, choose wisely.