Why should I invest in cryptocurrencies?

[Jovan]

Hello, I have seen tons of advertisements for cryptocurrencies on various social media platforms. And I have to admit, I have been influenced enough, and I feel like investing in cryptocurrencies. However, I have second thoughts. I would like to understand the main reasons I should invest in cryptocurrencies. Advise me accordingly, please.

[Parker]

Hi Jovan,

I am sure you are not alone in this predicament. But you will not be in the dark anymore. Read on to get factual information to enable you join the world of cryptocurrencies.

The following are the proven benefits of investing in crypto. 

• Accessibility

You don't need to open a bank account to trade cryptocurrencies. All you need to open is an exchange account online to enable you to store your cryptos in a digital wallet. All you need is a mobile phone with internet, and you can complete your transactions. 

• Confidentiality

Cryptocurrency is a transaction carried out between two people with no third parties like banks involved. This means no other person knows how much you are transacting or what you are purchasing or selling.

• Efficiency and speed

As we have noted, trading cryptos is a private affair. Other than conducting your business privately, you also avoid costs associated with third parties. Overall, it becomes quicker and easier to transact.

• Simplified worldwide exchanges

Cryptocurrencies do not incur transaction fees that international transactions attract. It is also a more straightforward exercise since there's no paperwork or third parties involved.

• Ability to trade 24/7

You can trade in cryptocurrencies any day and hour of the week. The only time you might not be able to trade is when there is downtime as the market takes in the infrastructure updates.

 

• Availability of margin trading

Margin trading means you can get into trade positions with a value higher than the funds in your account. In cryptocurrency, it means the exchange loans you money to enable you to join positions with high values.

• High volatility

Volatility is the rate at which prices decrease or increase in a given period of trading. Cryptocurrencies are highly volatile, which means the prices are continually moving, and the returns are high. However, the risk is also high, and you can incur losses.