There are lots of reasons why you might want to consider investing in crypto. After all, it often seems to be one of the main things spoken about in the media. So, you may be wondering if crypto is a good investment. That’s understandable.
Here at Koda, we are all about educating people just like you. In fact, education is one of our key values along with trust and ease of use. So, in this blog post we want to give you an introduction to cryptocurrencies and lots of reasons why you might want to consider investing in crypto.
A Quick Introduction to Investing in Cryptocurrencies
As you will have seen in the media, cryptocurrencies and blockchain technology are taking the world by storm. More and more people are turning to the world of crypto investing, and for good reason too. There are lots of different reasons that people choose to invest in the crypto market. For many people, it is to help them meet their financial goals and dreams.
However, there are some people that want to make a quick, guaranteed buck. These are the people that invest in the world of cryptocurrencies for the wrong reason.
Top Reasons to Consider Investing in Cryptocurrencies
Below we share some of the many reasons to consider an investment in the world of crypto. Have a read and see which reason or reasons appeal to you. These are why we think that every investor should have crypto coins in their investment portfolio.
- Crypto Coins Are Revolutionising the World
The first ever crypto coin launched just over a decade ago. However, the advancements in technology and innovations have been huge in this short time. Many changes have already occurred in the ever-developing world of crypto, and we know that there are many, many more improvements and developments to come.
Cryptocurrencies have changed financial systems to a point of no return due to their decentralised nature. They are able to facilitate transactions beyond borders at lower costs. Further to this, cryptocurrencies also offer fast processing times too.
In turn, this means that the need for central and more traditional banks is reduced to a minimum. This then gives investors a significant amount of freedom and control over their financial data as well as their money.
While some people consider cryptocurrencies to be the latest trend of a whim for millennials, that really isn’t the case. Cryptocurrencies are here to stay and worth investing in too. According to recent research, there are over 20,000 crypto projects that you can choose to invest in.
- Crypto Coins Have High Liquidity
Crypto trading interests a lot of people for a lot of different reasons. Another reason you may want to consider investing in cryptocurrencies is because they are marked by high liquidity. This means that it is incredibly easy to buy and sell cryptos. More so here at Koda, as one of our core values is ‘ease of use’.
When it comes to some of the better known and more established crypto coins, there will always be high demands for them. However, the less-known and less-established crypto coins are growing hugely in popularity.
New research shows that crypto wallets in 2020 increased to more than 54 million. This shows that it is not only ambitious investors and big businesses buying and selling crypto coins. Crypto trading is highly accessible to everyone. It’s not some kind of rocket science. While you do have to do your own research, anyone can become part of the crypto investing world.
- Investment In Crypto Can Lead to High Returns
Money makes the world go round, whether you like it or not. Therefore, the main motivator and incentive for many people who invest in cryptocurrencies is the potential of high returns on your investment. While crypto trading may still be a relatively new investment opportunity, it can lead to higher potential returns than other investment options, such as stocks and shares for example.
One of the attractive things about investing in crypto is that cryptocurrencies are highly volatile. This means that an investor can potentially achieve very high returns from one single cryptocurrency coin trade.
However, it is important to remember that the high volatility of the crypto market means that traders could lose it all in one second too. As with all investments, you need to consider the potential risks as well as the benefits. By devising an effective risk management strategy, you can help limit your losses.
- Gain Independence and Flexibility Through Crypto Investing
Whichever cryptocurrencies you choose to invest in, your money is yours. As we have said before, crypto coins don’t rely on banks. This means that you don’t have to pay out huge fees to the banks just so they can hold your money.
Further to this, the crypto market is open 24 hours a day and 7 days week. You don’t need to worry about sorting your investments and trading around business hours and checking when the bank is open. Instead, you can buy and sell your crypto coins whenever you choose.
You have complete control and flexibility over organising your time and planning your crypto trading routine. This means that you can trade full-time if you choose, or part-time if you prefer. You could even buy, sell or trade crypto coins while travelling or sat on holiday. How and when you choose to trade is completely up to you.
- Investing In Crypto Diversifies Your Investment Portfolio
If you have an investment portfolio, crypto is a great way of diversifying it. Even if you are not a crypto enthusiast, you will be able to see how this diversification can benefit your investment portfolio.
By portfolio diversification we mean spreading your investments and exploring different assets. In turn, this can help you reduce the risks to your investments. Just like the old saying about not putting all your eggs in one basket. By investing in crypto to diversify your portfolio, you are avoiding doing exactly that.
The reason that a crypto investment is a great addition to an investment portfolio is because it works different to other investments. This means that it can diversify your portfolio. Cryptocurrencies don’t tend to move with assets such as bonds and stocks. This means that investing in crypto enables you, as an investor, to establish yourself as a successful trader in today’s dynamic and constantly changing world of finance.
- There Is An Unlimited Choice Of Coins
While there are the well-known key names in the world of crypto coins, there are actually so many different crypto coins that you can choose to invest in. You will find that there are thousands of crypto coins that you can choose to buy, sell or trade in.
With an unlimited choice of crypto coins, comes thousands of ways of diversifying your investment portfolio. This can potentially help you increase your wealth. As we said before, diversifying your portfolio is the key to investment success. With cryptocurrencies you can even diversify your crypto investment portfolio.
There are some undervalued crypto coins out there. These can make for a tricky investment. However, there are others that deserve your attention and offer an extremely good reason for an investment in cryptocurrencies. Experts believe that some of the top crypto coins are due to explode next year so make sure you do your research to ensure you invest in the right crypto coins for your investment goals.
- The Cryptocurrency Future Is Bright
Many financial experts believe that the future of cryptocurrencies is bright. Yes, crypto coins are highly volatile. However, investing in crypto coins can be a safe and more promisingly profitable investment than some other assets.
For example, the best-known crypto coin out there has been declared as ‘lost’ multiple times. However, despite many ups and downs and even through the pandemic it has still survived. So much so that investors are feeling quite positive about the future of the crypto coin.
The co-founder of Snappa, the leading software company in Canada, was quoted asking if people would rather save money in a currency whose supply is inflating each year or in a currency whose terminal supply is programmatically fixed. He went on to add that we now have a far superior savings technology available to us. This, of course, is cryptocurrencies.
- Crypto Investments Offer Security and Transparency
Cryptocurrencies have a bad rap. A lot of people still associate crypto coins with illegal activities and notorious scams. However, investing in cryptocurrencies is a promising venture. This can be seen by the many, many more people putting their trust in cryptos instead of fiat currencies.
The mysterious figure behind the first ever crypto coin is called ‘Satoshi Nakamoto’. He said that the root problem with traditional currency is all the trust that is required to make it work. Satoshi added that the central bank must be trusted not to debase the currency. Instead, it must be the history of fiat currencies is full of breaches of trust. It is important that are banks must be trusted to hold our money and transfer it electronically. Banks also need to be trusted to lend out the money in waves of credit bubbles. With this, there needs to be barely a faction in reserve.
Further to this, many crypto coins are based on blockchain technology. This form of technology is considered as ‘un-hackable’. This is because blockchain transaction are encrypted, signed by a private key and verified with a public key. Alongside these high levels of security, blockchain technology, which backs cryptocurrencies, offers high levels of transparency. This a major reason that a lot of people consider investing in cryptocurrencies.
- A Chance To Invest In Something That Will Transform The World
You don’t have to be a tech geek or a blockchain developer to see the potential of cryptocurrency and blockchain technology beyond crypto trading. There is an increasing use of smart contracts and decentralised apps. It is possible for blockchain technology to benefit different sectors. These sectors include gaming, medicine, business and even voting as an example.
If you know any gamers, speak to them about blockchain technology. They will happily talk to you about the impressive innovations that blockchain based technology can bring into the world of gaming and digital ownership.
During the pandemic we have seen more and more people turning to blockchain technology and digital payments as a way to reduce the risk of new outbreaks. In fact, recent data shows that there was an increase in the downloads of crypto apps during the coronavirus pandemic in 2020. We have also seen that sceptics and strict governments are now more positive about crypto coins. The rules and regulations around cryptocurrencies are becoming much clearer too.
- Even Wall Street Is Involved in Crypto Investment
There has been a huge increase in the interest of cryptocurrency investment worldwide. This has meant that more and more organisations are becoming crypto-friendly. In fact, two of the world’s leading crypto exchanges are now banking clients of JP Morgan, a financial giant in America.
We are seeing that even governments are not only embracing cryptocurrencies, but some are going crypto too. Many others are trying to develop their own central bank digital currencies. Meanwhile some countries and their governments are recognising crypto as inheritance, like in Italy for example.
The interest in investing in crypto is increasing in many emerging markets across the globe too. These include locations such as Kenya and South Africa for example. Major merchants such as Microsoft and Virgin Galactic are all accepting payments via well-known cryptocurrencies. It seems everyone is gaining interest in crypto as investment. Should you be as well?
- Investing In Crypto Enables You to Learn New Skills
Whatever cryptocurrency you decide to trade in, buy or sell, you need to get revising and learning. You need to take the time to learn about the world of crypto so you can master the art of investing in cryptocurrencies.
Not all investors in cryptocurrencies will become millionaires. However, the learning journey will have a hugely beneficial impact on your life. For example, you will improve your trading skills and better understand how to make sound and informed financial decisions. Whether you learn about day trading strategies or trading psychology tips, you will improve your finance and investment skills. What you learn will be valuable and worthy in all investment opportunities.
While learning about the world of crypto will be great for your investment in cryptocurrencies, there will be other benefits too. You will find that your discipline improves, as well as your emotional self-control and habits. You will gain a lot of self-development skills from learning more about cryptocurrencies and potential crypto investment opportunities.
- Investing In Crypto Has Never Been as Easy As It Is Now
As we mentioned earlier, one of our core values here at Koda is Ease of Use. This means that we are continuously working to improve the ease of use for our audience. However, it has never been as easy as it is today to start investing in cryptocurrencies. We live in a tech-driven world what allows people from all backgrounds, ages, financial status and walks of life to learn about investing in crypto.
The amount of information about crypto trading out there today is incredibly vast. There are more and more websites, courses, books, blogs and forums talking about cryptocurrencies popping up all the time. This means that potential crypto investors can quickly and easily gain so much knowledge on investing and the best ways to do so.
There are loads of stories online about the success stories of crypto kings and queens. You can also join online platforms too. Smart devices make it simple to invest in cryptocurrencies. All you need to do is open a crypto account and deposit funds into it. You can then start trading.
- Crypto Investments Offer a Low Entry Threshold
Stocks and real estate are two examples of investments that need a lot of initial capital to start investing. However, there is a low entry threshold to investing in cryptocurrencies. This is why it can be a great investment opportunity for those new investors, investors with less money or those just wanting to give crypto investment a try with less risk.
There are a lot of crypto trading platforms out there that do not require large sums of investment to start buying, selling or trading crypto coins. In fact, on some crypto platforms you can start trading cryptocurrencies for as little as £10.
You’ll find that there is also no need for time-consuming procedures to start trading crypto coins. There are no complicated processes to complete. There is no burdensome paperwork to complete either.
- You’ve Not Missed the Boat To Crypto Investment Success
You may be wondering if you have left it too late to start investing in cryptocurrencies. The great news is that it is never too late to start investing in crypto coins. Some people believe that the time to make millions has passed, as this was what the early adopters gained. However, the jury is still out on that one and it is still a hotly debated topic.
We believe, along with other crypto and financial experts, that cryptocurrencies and blockchain technology have a long way to go. Even by investing in cryptocurrencies now, you could still be considered as an early adopter to crypto.
Many investors find the feeling of investing in something so innovative, really amazing and have an overwhelming feeling of excitement. Would you like to feel that way about your investments?
Stop looking for more reasons to start your journey in crypto investment. If you have seen something of interest or a reason to get involved, why not? Call our team now to start your crypto investment journey in the UK.