Perhaps, you’ve heard about crypto countless times when the market was skyrocketing. Cryptocurrencies are not the subject of everyday hype nowadays, but the interest in digital assets is still strong. Do you need to buy digital assets and why?
The reasons to purchase cryptocurrencies are different. Crypto can be used to pay for the goods and services in countries where it is legal. It does not need to be declared when crossing customs, and the transfer of funds is carried out in minutes without intermediaries and high banking commissions. It’s a universal commodity that is the measure of value.
Speaking in detail, cryptocurrencies are interesting to consider as a perfect investment tool, and the most straightforward and profitable strategy can be “Buy&Hold”. Fact is, the growth of prices will be facilitated not only by the widespread legalization of cryptocurrencies and the increase of interest in them in society but also by the fact that the issue of many cryptocurrencies is limited algorithmically.
However, in the short term, the cryptocurrency market may be subject to sharp fluctuations. For example, the Bitcoin for the period from 2009 to the end of 2013 rose from zero to $ 1,200, then collapsed to $ 160 by January 2015, and two years later it jumped to the record-breaking $20,000, only to fall in price several times after – the current rate of the primary cryptocurrency is $3,587.
Cryptocurrency has several significant advantages. First – no inflation. If the printing press will go crazy and print insane amounts of dollars, it is logical that the money will depreciate. This situation is excluded with cryptocurrencies, as their number is known in advance and is limited.
The next advantage is decentralization. There is no single center from which the system is managed, which means that it is challenging to disrupt the system at large, forcibly limiting the spread of currency – the network simply does not have a single owner.
Last, but not the least, benefit is anonymity. It is possible to track transactions and see how many Bitcoins have been transferred from one wallet to another, but it is not that easy to determine who is the owner of the wallet. Anyone can open the Bitcoin account, and you need the appropriate software and access to the network only.
Summing up the facts stated above, we come to the simple conclusion – if you have funds you are not afraid to lose and you’re the tech geek, buying cryptocurrencies suits you well. However, main point here is to realize your ultimate goal, before jumping into volatile seas of digital assets: an attempt to earn money fast, to win in long-term market play, or simply to follow modern trends.