If you asked a banker about the benefits of crypto investments, you would probably get a couple of laughs because of only look at the risks. Even if it is true that crypto is a very risky business, there’s no doubt that there are many benefits compared to the banking system. But, it also depends on your goals and how much you have to invest.
The only coin that you don’t need to know about but can invest in is BTC. When it comes to other coins or platforms, you should always do a deep dive and explore your options. You might invest your money on the NBA expert picks when you are bored, and it can have the same outcome as other blockchain platforms that seem like a great investment.
The benefits of cryptocurrencies are usually related to blockchain technology because it is the sole reason why these coins exist. Only governments are not benefiting from it because it still isn’t regulated, and people are investing fiat currency in something digital.
Full Control Over Investments
Controlling your investments is one of the crucial things you want to have because having your money in different funds doesn’t always seem safe. When a lot of people can have access to your account, there’s some risk of misuse. When it comes to crypto, you will have full control in most cases, where you are not saving the coins in some sketchy platforms.
When you have a few Bitcoins in a wallet on a flash drive, there’s no way that someone could steal it online or affect it somehow so you can lose money. Of course, the only thing that can happen is that BTC drops to 0, but the likelihood of that isn’t so great.
This is why many professionals from the industry advise people to get BTC and just stash it somewhere they would basically forget about. That’s one of the ways to do it but there are also benefits when it comes to trading.
Trading became a huge thing a few years ago when forex trading became popular among average people that don’t have any knowledge about day trading. Stock trading, compared to crypto, is a snail because things in the cryptocurrency market are going bonkers on a daily basis. You can have one coin priced at $50 at 2 pm and a crash a couple of hours afterward.
Predicting a crash won’t take you far, but knowing when the price goes up can be a huge advantage. There’s a benefit for those people that know how to day trade because the highs and lows on a daily basis are drastic compared to traditional trading.
New technologies are always great to try out, even if they turn out to be very risky or even fail. At some point, you might end up investing in tech that will be used in the near future for great things. This will probably be blockchain technology because the main principle behind it is great. It’s starting to see involvement in almost every industry as a way to keep things organized and safe.
The benefit of new technologies is that you can be one of the pioneers that supported them. Even starting your own business if you have knowledge about blockchain is a smart move because at some point, we will make a switch to digital currency.
Traceable but Safe
Even if every transaction is recorded and you can see where the money is going, no one can know if a certain wallet is yours because it is just a number. This means that the transfers you are making are not going through the banking system, and you won’t get taxed for it unless you try to withdraw through a bank account.
There are people that will withdraw a certain amount for you for a small fee which is very beneficial if you don’t want to go through a bank. But, this can be misused in industries that are not legal, which is why governments are not so happy about crypto.