Why it is the best time to buy Cryptocurrency
They say Whenever a pandemic or Recession comes Millionaires go shopping to grow their wealth - It’s kind of their Black Friday. Millions of People had been affected through the Covid-19. A Global pandemic had made mass unemployment, Financial struggles, and tragic loss of life. But some were able to create more money through Cryptocurrency. Research from Satoshi Nakaboto says that “There are now 18,000 Bitcoin Millionaires” Yes, around 18,000 people were able to get out of the average life.
Cryptocurrency is surely an irreversible trend over the past couple of years A little over a decade later since Satoshi Nakamoto published the first bitcoin whitepaper, most people are still undecided whether cryptocurrency is real money. However, regardless of that, the business of cryptocurrency trading has found a way to penetrate the financial market. There are a variety of reasons why investors should add cryptocurrencies to their portfolios, and why this is the right time to do so….
So here are the factors why it is the best time to buy the Crypto Currency:
1. Unbelievable Remarkable Returns
Profitability is one of the most amazing factors about the cryptocurrency trading platform. it’s been only a decade but the cryptocurrency has evidently proven to be more profitable than most of the other investment options like with the more risk Stocks, Bonds, to safer options ETFs, Index funds, and mutual funds.
For instance, Let’s take a look at the return on investment for the last 5 years of cryptocurrency. It’s at 4,243.66%, Like Holy molly crypto king. This way more than like waaaaayyyyy more than the average of the ETF which is 10% annual.
Yes, it is risker to trade Cryptocurrency due to their volatility but it has the same amount of risk allocation factor that comes hand in hand while Trading with penny stocks. Yet a lot of people fail in this market because they invest thinking like Warren Buffet and blame like their Fate or most popularly LUCK.
2. High Liquidity or Gold 2.0
One of the key factors of an asset is its Liquidity. I know some of you will say Hey Harman What’s Liquidity, It’s like Crypto is Liquid. No, It’s just a measure of how one can easily purchase and sell an asset at a price close to its market value. This is why people are defining CryptoCurrency as Gold 2.0.
For long-term investors, this might not be an option you look up to. Sure they have gotten sweet rewards for playing the long term in the stock market but they had to face the gut-wrenching drops of 90% along the way. The most recent one is the Covid-19 back in march when it slashed more than half the value of stocks even cryptocurrencies like Bitcoin.
3. CryptoCurrencies are Decentralized
This provides the holder of the crypto a power with a certain level of independence that counters the Traditional Financial system. Basically When you are saving your money inside the banks means that Your funds are under the mercy of organizations and a select group of people. Which they are going to either lend or invest in other assets that can produce a higher return. Thus making your money operated as Centralized.
Whereas, In CryptoCurrency are only yours just like you own a stock and can only be managed by you alone. You don’t have to rely on any Financial institution to grow your money. And for sure you are not going to earn 1% annual I know that thing hurts.
That’s why Cryptocurrency owners do not have to rely on the actions of Central banks or regulators and their potential impact on its value in contrast to the other forms of money.
This is the reason why CryptoCurrency performs better (best) when there’s doubt in the ability of the traditional monetary system to handle challenging conditions. Just like in this Pandemic situation where the circulation of money is Fluctuating and volatile investment decisions because of the closer of the business or market undervalue for investments like Real Estate. All these factors make people lose hope in Financial institutions.
4. Affordability
Affordable is one of the key Characteristics of Cryptocurrency. You and I can buy Crypto in any amount because of the digital blockchain nature. Unlike the stocks where the company issues the share price for the stock and we need to have a certain amount of money in order to buy the particular stock. this factor does not apply to Cryptocurrency.
For Instance, If I want to buy 1 share of amazon I need to have $3,162.58 USD (Note: the price may fluctuate after the publishing of the article) in order to buy only 1 share, Like ONLY 1 Share. that’s way more expensive for the average joe who wants to buy a company share. That’s why people go for the ETF, Index options, or Mutual funds option because of their affordability.
But on the other hand, Cryptocurrency is way better in buying the Crytpo currency.
let's say you want to buy a Bitcoin (One of the most trending Crypto) the Price right now at the time of writing this article is $24,912.62 CAD even if you have 10 dollars you can still buy the bitcoin because Cryptocurrency is a blockchain, not a currency that Central banks print on the behalf of the government issue. With 10 Dollars you can buy a portion of 0.000408 BTC this key characteristic makes the Cryptocurrency had an edge over the traditional stock options where the average joe always misses the opportunity to buy the stocks of the top companies because of the price factor.
5. External Factors
2020 Presidential elections or the pandemic. Every time something happened the business get affected just like this pandemic situation all of this certainly influenced the prices of the cryptocurrency. In the early stages of the Covid-19, the price of the cryptocurrency get half cut to the price of $5000, and the 2020 Presidential elections for the US made it bounce back to an all-time high of $24,000. That’s why they say When the US sneezes Holland catches the Cold.
Bottom Line
Just like any other Asset, when buying you need to consider factors, Have strategies, and need to understand how the market works. The Crypto Market is highly profitable but one should not forget about the factor of high volatility and the hacks against the crypto exchanges and trading platforms, media statements, and the interplay between supply and demand. That’s why you need to choose the right platforms for trading the cryptocurrency. I personally use WealthSimple Trade & Coinbase because of their Safety precautions and security they provide in managing our Cryptocurrency from theft or Online breach. And Yes if you sign up by clicking here — WealthSimple Trade & Coinbase You will earn $10 dollars as a signup bonus when you deposit $100.
