In a relatively short period of time, cryptocurrency has gone from a fringe curiosity to a popular trading medium. The world's first cryptocurrency, Bitcoin, was created in January 2009, just after the global financial crisis shook markets.
It took ten years for it to become one of the most valuable digital assets. While it remained largely unknown for the majority of that decade, its unexpected growth resulted in the emergence of other similar coins. The promise of almost vertical returns was a major factor in their rise. It's no surprise, then, that investors are flocking to these new digital assets in order to get a leg up on the competition.
However, the question of whether or not to invest in digital assets remains unanswered. To put it another way, Why should consumers invest in digital assets such as Bitcoin or other cryptocurrencies? These coins are incredibly volatile, rising and falling at a breakneck speed. What security features will protect an investor's money since these operate online?
True, the majority of these digital assets are inherently risky. Experts believe that, like stock markets, they will achieve stability as they grow and gain acceptability, and more people begin to trade in or with these currency. What about safety, though? The cryptocurrency world is based on blockchain technology, which is relatively new and unfamiliar to many people.
Tech experts, on the other hand, claim that the technology is democratic in nature and perfectly safe to use. It is built on the concept of a digital distributed ledger, which means that everyone, from anywhere, may witness any transaction at any time. Nobody can tamper with the data that every transaction is kept in on the blockchain.
There are certain benefits of investing in them as well:
1. Booming Sector
The cryptocurrency market has risen by leaps and bounds in the last two years. For example, Bitcoin's price was little over $7,000 (approximately 5.18 lakhs) at the end of 2019, but it is now trading above $45,000 (about 33.34 lakhs). In February and April of this year, it was worth more than $60,000 (approximately Rs 44.46 lakhs).
2. Digital Ecosystem
In the post-pandemic world, a whole new digital economy is forming, not only cryptocurrency. NFTs, or non-fungible tokens, are an alternative to cryptocurrencies. In addition, rather than investing directly in crypto coins, techies are becoming involved in the process of creating these coins, known as mine, and earning a solid income.
3. Impressive Returns
Cryptocurrency provides one of the finest returns, only matched by the real estate sector. Unlike the real estate market, investing in digital assets does not need you to invest a big amount. You can break your investment into several parts.
4. Income from a passive source
Investing in digital assets and internet enterprises might provide you with a steady stream of revenue. You can do it in addition to your regular investments, and money will increase in your account through a steady stream of income without much effort.
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