To say you’ve definitely heard of crypto by now would be an understatement. Digital currencies have gained increasing traction with the public at large over the past few years, and a growing number of people refer to themselves as traders. As they continue to grow, you’ve probably considered getting into trading yourself.
However, you’ve probably been deterred by one too many tales of the dangers of crypto, mostly driven by its infamously high volatility levels. According to naysayers, e-currencies are something you shouldn’t even think about, as they’re going to inevitably lead you to disappointment and destitution.
The reality, however, is more nuanced than that. Crypto does hold risks, however, so do more traditional forms of trading and investing. These aspects have never discouraged traders, and you shouldn’t let them put you off either. Here are some of the benefits of crypto that are going to make you want to stick around the digital currency market and give investing your best shot.
The novelty
Crypto has either introduced or popularized technologies that have been virtually unknown until their emergence, with only a few niche communities being aware of their existence. But ask someone today if they know what “blockchain” means, and they’ll be able to provide you with a rough definition of what this tech does.
The technological developments of the blockchain, which reached mainstream knowledge with the advent of digital currency trading, have been hailed as a gamechanger and not only for the finance industry and banking. Supply chains, shipping and even healthcare and law enforcement can potentially benefit from it, making it one of the most important discoveries of the century.
In this sense, when you invest in crypto, you’re also at the forefront of development and supporting the future of technological evolution. That’s certainly a pursuit worthy of your time and attention.
DeFi
Decentralized finance offers financial instruments that function without the participation of intermediaries such as banks, exchanges or brokerages. The platforms use layered architecture and composable building blocks, and the technology allows you to lend, borrow, speculate, trade and earn interest. Since e-currency is bound to change the future, it’s not unlikely to see that new types of economic activity will be facilitated over the next few years.
When you’re choosing a currency to trade into, you should try to focus on coins that are already more established on the market. While the allure may be high when it comes to judging the newcomers to the scene, established names hold better over time and are overall less volatile. Ethereum is one of the best choices you could make.
As one of the leaders in blockchain technology, they’ll provide you with a safe and fruitful experience, whether you’re a seasoned trader or a novice trader. As the largest exchange in the world, Binance will provide you with the latest changes in the values of the currency, so you can construct a sound strategy and predict what your next move should be.
When you stay aware of the ETH price, you get a better idea of how the market functions and what the supply and demand are.
Store of value
When an asset of any kind possesses store of value, it means that it’s going to maintain its value. Deprecation is a big problem in investing, with holdings often dropping in value over time. The importance of this factor cannot be overstated. Even at a national level, the currency must have store value for the country’s economy to prosper.
Similarly, you need to involve yourself with assets that are going to hold up over time and provide adequate revenue. Since crypto typically functions under a limited supply, no political body or entity can dilute the value of digital money via inflation. Tokens can also not be confiscated without the permission of the owner.
If you’re worried about disaster scenarios such as hyperinflation or bank failure, you can find the trading venture you’re looking for in crypto. Digital currencies are known for their deflationary tendencies, providing increased security for investors. This propensity has caused them to be likened to precious metals, whose shelf lives are essentially limitless.
Freedom
Freedom of transaction is one of the most obvious benefits of crypto. Since any type of undertaking takes place without the involvement of any third-party, the process is freer and resistant to censorship efforts. It’s not uncommon for banks to refuse to provide services to certain individuals, such as journalists or political dissidents. Since there’s no authority governing crypto, it can be used by anyone without any problem.
The markets are open 24/7, making them accessible regardless of your schedule. With traditional stocks, you’ll only be able to trade during a particular designated time, and often during specific days of the week. This can be troublesome if those are the times during which you’re not available because you’ve got something else to do. The only things that can stop you from trading in digital coins are the internet or power outages.
Security
Although crypto gets a bad rep for being unpredictable and inconsistent, it is actually much safer than many other trading ventures. This is due to it not relying on central intermediaries, meaning that you are the only one in control of your funds and information. Your keys guard your blockchain address and keep your digital money safe and sound.
While hackers can and are a problem, a wide range of issues actually start with the users themselves. It’s very important to remember your password or passphrase or risk forever losing access to your crypto. Lost devices are another common problem.
Not only does it mean that you won’t be able to reach your revenues, but it can also mean that someone else can potentially gain access to it. The best way to ensure the security measures of the blockchain work optimally, is to make sure you follow them closely in order to prevent any type of theft or scam.
There are many misconceptions and exaggerations floating about when it comes to e-money, and while it can be easy to take them at face value, it’s always important to try and have an objective view. This way you can discover that crypto may just be the perfect investment for you.
