This article will highlight the key reasons why now is the best time for you to invest in cryptocurrencies.
The cryptocurrency market has been growing at an exponential pace and making a number of people very rich. But is it all about making money? The technology underlying cryptocurrencies – called Blockchain technology – has the potential to change our lives for the better. What does the crypto world have in store for you?
Here are 4 reasons why you should get on board and invest in cryptocurrencies.
1. Returns You Could Never Have Imagined
Let us just compare Bitcoin’s rate of return with that of S&P 500 stocks, which is the leading indicator of the performance of U.S. equities from the year 2016.
I wish I can say that we’re dreaming. But we’re not. Say you invested $10,000 in early 2016 in U.S. stocks, by now your total investment value would be around $12,000. But if you invested in Bitcoin, you would be worth a whopping $60,000. Let’s choose another prominent coin: Ethereum. (See more: What’s the Difference Between Ethereum and Ethereum Classic?)
This is even crazier. And this chart is from the start of this year. If you’d invested in Ethereum, your investment would have increased by a multiple of 46. If you had invested $10,000, you would have $470,000 in a span of 6 months. Think about it. These kinds of returns are impossible to acquire within the realm of traditional investments.
Cryptocurrencies Aren’t Just Bitcoin & Ethereum!
Bitcoin and Ethereum may be the biggest coins now, but there are hundreds of coins which can achieve similar or even better rates of return. Each coin has a specific purpose or solves a particular issue. You can have a look at the different coins here. (Read more: Guide to Blockchain Protocols: Comparison of Major Protocol Coins)
However, a word of caution: Make sure sufficient due diligence is undertaken before investing. Cryptos can be highly volatile and they are at the stage of infancy; there’s a possibility that many coins may fail or are downright scams. It is very common to come accross scammy ICOs and cryptocurrency project that have no use case and are just money-grabs.
(See also: Dangers in Cryptocurrency Investing)
2. Huge Growth Potential
The crypto world is extremely intimidating, due to the complexities in understanding the technology. The use of technical computing terms can confuse and deter outsiders. This is the main reason why many stay away from cryptocurrencies. In addition, it can be a real challenge navigating through the ecosystem; from opening an exchange account, to sending coin transactions, to managing one’ private wallet for safekeeping. (See more: Beginner’s Guide to ICO Investing: How to Participate in ICOs)
The fact that the Cryptos intimidate most people is the very reason why you would want to be in it. Jumping on the bandwagon earlier than most would give you an edge, both in terms of potential gains and experience. It can be a steep learning curve, but it would all be worth it. Once there’s adequate mainstream coverage on cryptos, the masses will start pouring in, purely because the rates of returns are relatively astounding!
Our advice? Learn the ropes of crypto investing now, and reap your sweet rewards.
(See more: Guide to Common Crypto Terms)
3. Ideological Empowerment
If you’re not a big fan of the government, the big banks or monopolistic corporation, then cryptocurrencies are perfect for you. Let’s face it, humans are used to a central authority– in the form of a government, an institution, or a company- that set rules to dictate the way things should be done. What if the tables are turned, and the masses have a real say in how things should operate? Now that is a truly democratic ecosystem.
The decentralization of cryptocurrencies democratizes traditional powers and empowers the masses. No more shall you depend on financial institutions for transferring money that comes with an exorbitant fee. There are many coins – most notably Bitcoin – that allows users to transfer money to anyone at any location with a fraction of the fees. Not only that, having private wallets to store your coins gives you full control of your money. It’s like managing your own bank; you decide your own rules.
Moreover, the nature of an open, decentralized economy powered by Blockchain naturally aligns the economic incentives of participants. This means that actors with bad intentions would find it extremely unproductive and expensive to attack or compromise the system, as the amount of resources needed to do so would be astronomical. Instead of wasting their resources to compromise the system without gaining any incentive, the logical thing to do is to contribute their resources to strengthen the security of the system (a process called “mining”). They would, therefore, be entitled to economic rewards for doing so. Anyone can take part in the network by contributing resources and earn coins for the commensurate work that you put in. The capacity of any person to participate and power the entire ecosystem is the nature of decentralization.
(See also: When trust is no longer an issue)
4. Bragging Rights
Imagine having the opportunity to be part of the internet revolution in the 1990s. It was a perfect opportunity for you to acquire a vast amount of wealth and more importantly, bragging rights. The rights exclusive only to the initial investors and backers of the revolutionary technology, and that which could serve as your lifetime legacy. That recognition goes beyond material wealth and it really is currently at your fingertips. How many can claim the rights of being the few that took part in the development of a revolutionary part of human evolution? Very few. Cryptocurrencies are the gateway to that legacy.
“Having bragging rights and being extremely rich along the way is combination that only few have, and will ever experience.”
All in All
The crypto world is a blossoming to be a real game-changer that could change the way we do things. As we speak, applications are being developed to disrupt the current status quo, for the better. Imagine having transparent access to government or organizational activity at your fingertips, or allowing part of your computing power to be shared in the advancement of key scientific and medical projects. A decentralized system allows the masses to leverage each other’s resources and qualities to uplift the community. It is a force of good. Additionally, you can also get very rich investing in the ecosystem too. So what are you waiting for? If you think that it may be too late to invest, have a read here: Is it Too Late to Buy Bitcoin and Is It too Late to Invest in Cryptocurrency?
**In a Proof-of-Work system, the resources include computing power and electricity. In a proof-of-Stake power, the resource is the actual coins itself, as participants have to “stake” their share to take part in the mining process.
**Not all coins are decentralized; some coins are conceived to be centralized.
Related Video: The Basics of Bitcoin
Beneficial Resources To Get You Started
If you’re starting your journey into the complex world of cryptocurrencies, here’s a list of useful resources and guides that will get you on your way:
Trading & Exchange
- Crypto Guide 101: Choosing The Best Cryptocurrency Exchange
- Guide to Bittrex Exchange: How to Trade on Bittrex
- Guide to Binance Exchange: How to Open Binance Account and What You Should Know
- Guide to Etherdelta Exchange: How to Trade on Etherdelta
- Guide To Cryptocurrency Trading Basics: Introduction to Crypto Technical Analysis
- Cryptocurrency Trading: Understanding Cryptocurrency Trading Pairs & How it Works
- Crypto Trading Guide: 4 Common Pitfalls Every Crypto Trader Will Experience
- Guide to Cryptocurrency Wallets: Why Do You Need Wallets?
- Guide to Cryptocurrency Wallets: Opening a Bitcoin Wallet
- Guide to Cryptocurrency Wallets: Opening a MyEtherWallet (MEW)
Get our exclusive e-book which will guide you on the step-by-step process to get started with making money via Cryptocurrency investments!
You can also join our Facebook group at Master The Crypto: Advanced Cryptocurrency Knowledge to ask any questions regarding cryptos!