The birth of bitcoin in 2009 opened doors to investment opportunities in an entirely new kind of asset class – cryptocurrency. Lots entered the space way early.
Intrigued by the immense potential of these fledgling but promising assets, they bought cryptos at cheap prices. Consequently, the bull run of 2017 saw them become millionaires/ billionaires. Even those who didn’t stake much reaped decent profits.
Three years later cryptocurrencies still remain profitable, and the market is here to stay. You may already be an investor/trader or maybe contemplating trying your luck. In both cases, it makes sense to know the benefits of investing in cryptocurrencies.
Cryptocurrency Has a Bright Future
According to a report titled Imagine 2030, published by Deutsche Bank, credit and debit cards will become obsolete. Smartphones and other electronic devices will replace them.
Cryptocurrencies will no longer be seen as outcasts but alternatives to existing monetary systems. Their benefits, such as security, speed, minimal transaction fees, ease of storage, and relevance in the digital era, will be recognized.
Concrete regulatory guidelines would popularize cryptocurrencies, and boost their adoption. The report forecasts that there will be 200 million cryptocurrency wallet users by 2030, and almost 350 million by the year 2035.
Opportunity to be part of a Growing Community
WazirX’s #IndiaWantsCrypto campaign recently completed 600 days. It has become a massive movement supporting the adoption of cryptocurrencies and blockchain in India.
Also, the recent Supreme Court judgment nullifying RBI’s crypto banking ban from 2018 has instilled a new rush of confidence amongst Indian bitcoin and cryptocurrency investors.
The 2020 Edelman Trust Barometer Report also points out peoples’ rising faith in cryptocurrencies and blockchain technology. As per the findings, 73% of Indians trust cryptocurrencies and blockchain technology. 60% say that the impact of cryptocurrency/blockchain will be positive.
By being a cryptocurrency investor, you stand to be a part of a thriving and rapidly growing community.
Increased Profit Potential
Diversification is an essential investment thumb rule. Especially, during these times when the majority of the assets have incurred heavy losses due to economic hardships spurred by the COVID-19 pandemic.
While investment in bitcoin has given 26% returns from the starting of the year to date, gold has returned 16%. Many other cryptocurrencies have registered three-digit ROI. Stock markets as we all know have posted dismal performances. Crude oil prices notoriously crashed below 0 in the month of April.
Including bitcoin or any other cryptocurrencies in your portfolio would protect your fund’s value in such uncertain global market situations. This fact was also impressed upon by billionaire macro hedge fund manager Paul Tudor Jones when a month back he announced plans to invest in Bitcoin.
Cryptocurrency Markets Are On 24X7X365
As opposed to usual markets, cryptocurrency markets operate round the clock, all days in a year without fatigue. That’s because digital currency systems are essentially designed using pieces of software code that are secured by cryptography.
The operational blueprint doesn’t involve human interference. So, you are free to trade crypto or invest in digital assets whenever you want to. That’s a great benefit! Cryptocurrency markets are very efficient that way.
E.g., Bitcoin has successfully processed transactions with 99.98% uptime since its inception in 2009.
No Paperwork or Formality Required
You can invest in bitcoin or any other cryptocurrency anywhere and anytime without any unnecessary terms and conditions.
Unlike conventional investment options, where an absurdly high amount of documentation is required to prove yourself as an ‘accredited investor’, crypto-investment is free for all. In fact, that was the intended goal behind the inception of cryptocurrencies. The democratization of finance/money.
For buying any cryptocurrency on WazirX, you need to open an account for which you just need to provide some basic details including your bank account information. Once they are verified, within a few hours, you are good to go.
Sole Ownership in Investment
When you buy bitcoin or any other cryptocurrency, you become the sole owner of that particular digital asset. The transaction happens in a peer-to-peer arrangement.
Unlike bonds, mutual funds, stockbrokers, no third party ‘manages your investment’ for you. You call the buying and selling shots, whenever you want to.
User autonomy is the biggest benefit of cryptocurrency systems that provides incredible opportunities to invest and build a corpus on your principal capital ‘independently’.
These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and convincing enough to kickstart your crypto investment journey.
Boost Your Retirement Through Investing Into Cryptocurrenc
Across the world, human life expectancy has grown by leaps and bounds. Compared to the 1950s, it has shot up by 50% and comparison with 1980s it has increased by 30%.
Long gone are the days when company-sponsored pension plans alone were sufficient to spend one’s golden ages in a relaxed and worry-free manner.
Today, with ascend other expenses like housing, education, healthcare and more, several people are finding it increasingly challenging to save for their retirement.
Unfortunately, the bitter truth is that people of all generations from baby boomers to millennials aren’t saving enough for their retirement. Saving is one of the most underrated worldwide epic crises.
“Retirement is complicated. It’s never too early or too late to start preparing for your Retirement.”
Thus, people are trying for alternate opportunities that provide them with higher returns in shorter span period.
Traditionally, real estate, private equity and venture capital was wanted. Now, a new and more additional moneymaking and lucrative investment has joined the picture – enter cryptocurrencies.
Cryptocurrency Investments – For those who don’t want to place all their Eggs in one Basket
One of the biggest advantages of cryptocurrency investments is that it decouples your portfolio from reserve currencies. Say, if you live in the UK, then you’re bound to have shares of UK-based companies in your retirement portfolio, if you’re into equity. What will happen to your portfolio if the British pound were to crash? And given, today’s volatile political scenario across the globe, nothing is certain.
Therefore, cryptocurrency investments make the most sense. With digital currency investments, you’re effectively creating a basket of digital coins, that acts as an effective hedge or as a safe bet, against reserve currency weakness.
The average investor should allocate only a small portion of his/her retirement assets into crypto, due to its volatility. But, instability can cut back both ways – think back to the healthcare stocks of the 1950s and the tech stocks of the 1990s. The smart early investors were the ones who made it big.
Don’t get left behind or lose out. Include crypto in your assets to start building a truly, diversified portfolio.
Cracking the Wall – Build your Trust in Cryptocurrencies
One of the biggest and foremost hurdles most first-time crypto investors face is that they can not trust digital currencies. Many, especially people who are not tech-savvy or nearing retirement do not perceive what the promotion is all about. Sadly, they fail to realize and appreciate the myriad potentials of cryptocurrency.
The reality is that – Cryptocurrencies are one of the most reliable assets, backed with the latest technology. The blockchain technology that powers digital currencies makes it possible to trade immediately and indelibly without the requirement for third-party verification. It’s a peer-based system that is entirely open and runs on advanced cryptographic principles.
Retirement Planning Funds Should Work on Demystifying Cryptocurrencies
To build the trust and win the support of individuals, retirement planning funds must educate investors about the endless potentials of cryptocurrencies. For this they need advanced analytics that helps in providing reliable risk analysis, risk/return metrics and projections.
Additionally, investment firms can set up specialized cryptocurrency advisory services to help and guide new investors. In the coming years, one can expect several smart AI-based advisors to crop up on the scene – these will assist in calculating the right investments based on an individual’s time horizon, risk tolerance and other factors.
Human advisors can work along with these intelligent advisors and provide customers with personalized consultation and other suggestions as and when needed.
Need for More Visibility and Comprehensive Control
Retirement investors who are looking to add cryptocurrencies to their asset portfolio require more control and visibility as they experiment with this new asset. Look for platforms that let you combine all your assets in one place. An integrated solution that enables you to manage and balance all your assets including traditional ones like bonds and stocks with new asset classes like cryptocurrency wallets.
Having such a broad platform that supports all your assets gives you a holistic portfolio analysis, helping you make better and more informed decisions. Thereby, you reach the ultimate aim of saving for your goals faster.
Look for investment planning portals that also provide additional features like periodic contributions to cryptocurrencies at scheduled or unscheduled intervals.
Advances in Supporting Technologies for Cryptocurrency Investing
Cryptocurrency investing will become mainstream only when the supporting technology makes it possible for investors to seamlessly trade coins, even for new investors who aren’t aware of the know-how. Exchanging one digital coin for another, or even for fiat currencies and other non-tokenized assets must be all made possible. When this becomes possible, it will eliminate middlemen from the equation, thereby lowering costs and additional fees.
With maturation of technologies that support cryptocurrency investments and trading, the value of digital currencies will further increase, as the currency goes mainstream with broader accessibility. This means early adopters are in for a huge gain. As more and more retirement investment platforms integrate cryptocurrency, the value of digital currencies is bound to increase offering significant gains to early adopters like you.
If you’re wondering, whether such retirement investment platforms will take a few years to see the light of the day, then you’re wrong. Auctus is one such portal that is currently in its Alpha phase of launch. It’s a first-of-its-kind retirement portfolio platform that includes digital currencies. Users of Auctus can get investment advise from both human and AI-powered analytical tools.
For now, users can save for retirement using Bitcoins, Ethereum and several other digital currencies. Additionally, users can make use of the Automated rebalancing feature that lets them adjust their portfolio automatically using a set of preset rules.
This holistic approach ensures that users can achieve their retirement goals earlier by making smart and the right investment choices or decisions.
Final Thoughts – Cryptocurrencies are Not to be Ignored in your Retirement Portfolio
Yes, it’s true that cryptocurrencies are highly volatile. In fact, there are speculations on the internet that suggest that “cryptocurrencies are nothing but a get rick quick scheme” and the bubble is likely to burst sometime in the near future.
The uncertainty doesn’t mean that cryptocurrencies shouldn’t be a part of your retirement portfolio, even if you short investment time horizons. On the other hand, the current slump in the prices of cryptocurrencies in 2018 mean you’ve got a rare opportunity to build gains.
Greater trust, holistic and directly controllable investment management capabilities and advances in supporting technologies ensure that digital currencies make for an excellent investment choice to include in your retirement portfolio.
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