Should I Invest In Cryptocurrency? The Complete Guide
If you invested $10,000 into Bitcoin on New Year’s Day, 2016 it would be worth close to $1 million on the 1st of August, 2021.
We all have that story of the one that got away — or the investment we missed — but it was understandable to be skeptical of Bitcoin 5 years ago. But times have changed and crypto has become a powerful vehicle for passive income and wealth creation. If you miss out now, you could be leaving thousands on the table.
That’s why I’ve built this guide on why you should invest in crypto soon. Over the next 6 minutes, you’ll learn about what crypto is, why you should invest, and where to buy some. Let’s go!
What Is Cryptocurrency?
Before you invest any money anywhere, you must understand what cryptocurrency actually does. In brief, cryptocurrency refers to the digital currency that is used in every transaction recorded using blockchain technology. The blockchain network (first introduced to the world via Bitcoin) is a public ledger that is cryptographically secured by thousands of computers all around the world — in other words, it’s decentralized.
Cryptocurrencies you may be familiar with include $BTC (Bitcoin), $ETH (Ether on the Ethereum blockchain), and $DOGE, popularized in recent months by none other than Elon Musk. That’s great and all, but should you be investing in cryptocurrency? Here are 4 reasons the answer is YES!
Four Reasons You Should Be Investing in Cryptocurrency
Cryptocurrencies are the future of finance.
Digital currencies like Bitcoin, Ether, and Litecoin are bringing all kinds of financial systems and assets into the future.
Take the tokenization of real-world assets. Representing assets in the physical world (real estate, fine art, vehicles) via cryptocurrency tokens opens the door to whole new worlds of investment. As cryptocurrencies enable things like fractional ownership and low-cost clearing, their values will continue to rise.
Digital assets like NFTs are another way crypto is generating wealth for thousands of people. With increasingly more unique collectibles being minted every day, it’s clear that the future of value is stored in cryptocurrency.
Cryptocurrency is a growing market
31% of the world’s adults don’t have access to traditional banking services. Government regulation, complicated fee structures, and the bureaucracy of legacy firms have slowed the path to financial freedom for hundreds of millions of people.
That’s where crypto comes in. Bitcoin and other cryptocurrencies have the power to bypass historical financial systems and allow the unbanked to control their personal finance.
Given that nearly a quarter of all unbanked adults globally live in growing markets like India and China, cryptocurrencies are poised to see an even bigger, more extreme growth curve (30%+ CAGR through 2023) over the next few years.
Growing adoption among countries, key firms, and thought leaders
Generally, it’s bad practice to do something just because all the cool kids are doing it — but crypto is a different story. Here’s a list of companies and thought leaders who are betting big on the future of cryptocurrency:
- Square. The payments firm is over worth over $100 billion. They also recently added a Bitcoin-focused department to the company, focused on the future of decentralized finance.
- Jack Dorsey. The CEO of Square and Twitter has said that there is nothing more important for him to work on in his lifetime than Bitcoin.
- Tesla. In April of 2021, the most valuable car company in the world purchased $1.5 billion worth of Bitcoin.
- PayPal. As one of the top payment processing firms globally, PayPal’s decision to let its users hold, buy, and sell cryptocurrency is significant.
- Mark Cuban. The Dallas Mavericks’ owner has likened blockchain tech to the early days of the Internet and owns both Bitcoin and Ethereum.
- El Salvador recently classified Bitcoin as legal tender. As one of the largest nations in Central America, this is a major development.
- JP Morgan Chase. Despite CEO Jamie Dimon’s skepticism, the investment firm has opened crypto funds for its wealthiest investors.
Cryptocurrency’s volatility is an opportunity for grid trading
People are (understandably) concerned about the volatility of cryptocurrency: only with securities that fluctuate can 8,000% returns be realized. But when you buy and sell strategically during the ups and downs, investing in cryptocurrencies becomes a lot less risky. This kind of cryptocurrency trading is called grid trading. How does one do this, you’re asking?
Firstly, you have to understand the cryptocurrency market is highly speculative. Anyone trying to tell you they can accurately predict how the markets will move is either a time traveller or full of it — perhaps a combination of both.
Grid trading, on the other hand, only promises one thing: the market will move. As long as you buy low and sell high at great frequency, you will make money. You could try doing this by yourself, but it’ll be time-consuming and tedious. The solution? You can find it HERE.
Where to Invest in Cryptocurrency in 2021
So you’ve decided to invest in some cryptocurrencies. Maybe it’s Bitcoin, Ethereum, or another one that’s just been launched! Whatever the case may be, you need a way to invest: that’s where the exchanges come in. Cryptocurrency exchanges are platforms where you can buy, sell, and invest in cryptocurrencies. For your convenience, I’ve compiled some of the best exchanges here:
Kucoin is home to a wide variety of coins, even newer ones that are just getting traction. A great option if you branch out to more niche cryptocurrencies.
You can trade over 100 cryptos using Binance, including their own, $BNB with lower trading fees.
One of the most popular exchanges globally, Coinbase is a secure and straightforward exchange platform for any level of crypto trader.
Investing In Cryptocurrency for Passive Income
I mentioned earlier that one of the most innovative ways to make money using crypto is through grid trading. I also told you it could be done with ease. The Plan with Dan Hollings — marketing genius and crypto trader — is the fastest way to turn the crypto market into a money-printing machine.
Dan Hollings’ crypto training program will show you how to configure and leverage crypto bots to do your trading for you, making you money while you sleep. Want to learn more? Find out what The Plan can do for you here.
Frequently Asked Questions
Is cryptocurrency safe to invest?
Cryptocurrency can be a very safe investment! The blockchain is secured with some of the most powerful algorithms in cryptography and a worldwide team of validators, meaning your investments are safe. And if you’d like, you can get your cryptocurrency investments insured as well!
What happens if I invest $100 into Bitcoin?
Although it’s impossible to predict how the markets will move, some analysts target Bitcoin’s value by the end of 2021 as $50,000 USD. Others believe it will reach ten times as much at some point in the future. If you invested $100 in Bitcoin in 2016, you’d have over $7,500 today.
Is Bitcoin still a good investment in 2021?
Allocating some portion of your portfolio to cryptocurrency is a solid strategy. Given that Bitcoin is referred to as digital gold (in that its supply is limited), an investment in Bitcoin could pay dividends and hold its value in the future.