Why Digital Currency Investments Are a Smart Choice in 2021 and Beyond?

Five years ago, the price of a Bitcoin was $375.20; today, the price is hovering at a whopping $58,102. That’s how much it has appreciated in 60 months. With Tesla willing to accept Bitcoin payments for its latest car, digital currency investments are among the most innovative ways to invest money today.

Digital currencies have started impacting the financial markets, and 86 percent of the world’s central banks are taking a second look at the digital currency.

Cryptocurrencies were the most discussed topic during this year’s Davos Agenda.  The who’s who of the Blockchain industry congregated virtually to discuss how they can regulate this industry and the growth prospects of Bitcoin.

Market Leaders Invest in Bitcoin

With speculations rising in the market, several industry leaders have already invested heavily in Bitcoin. Leading the pack was software firm Microstrategy, with investments of $250 million as early as August 2020.

Today, the company owns close to 71,000 Bitcoin, valued at $3.3 billion. Tesla is another keen investor with $1.5 billion invested in Bitcoin. Several other public companies like Marathon Patent, Square, and MassMutual have invested considerable sums in Bitcoin, which has pushed up the prices to an extent.

While Uber has indicated its willingness to accept payment in cryptocurrency, MasterCard may follow its footsteps, as it has indicated that it will support the digital currency in its network. Rumors are rife that companies like Apple Inc. may be looking at digital currency investments as part of their investment strategy.

Here are some reasons why cryptocurrency investments are a smart choice:

Returns in a Short Duration

As mentioned earlier, investing in Cryptocurrencies can fetch fantastic returns in an incredibly short duration. Although Cryptocurrencies have been around quite recently, investing in them has proved to be one of the best options, based on the increase in value in recent times.

While you can expect a decent return of 20 percent investing in US stocks (not without risks), investing in Cryptocurrencies can almost double your money in a couple of years. However, you cannot rule out losses as you need to deploy the right strategy while investing in digital currencies.

A Viable Alternative

With financial experts having exhausted almost all avenues of investment, and the stock markets crashing without any warning, people are looking for safer investment options. While you cannot rule out fluctuations in Bitcoin, people have conflicting theories of what would happen in the event of a crash in Cryptocurrencies.

However, Bitcoin did crash in 2017, though it recovered quickly to bounce back to the previous rates and appreciated quickly. Most experts believe Cryptocurrencies are here to stay, and the prices will keep surging as more people start investing in digital currencies.

Your Currency is Yours Alone

When you invest in Bitcoin, you are never at the banks’ mercy and no longer have to settle for the nominal rates of interest they pay. While a bank can place restrictions on how much money you can keep or withdraw at any time based on government guidelines, Cryptocurrencies are a different matter altogether.

However, you can hold or transfer Bitcoin online and do not need a bank to keep Bitcoin safe. There are no fees involved in moving Bitcoin, and having them online is probably the safest way of keeping your investment and accessing it.

Almost Instant Liquidity

What people look for while investing is the liquidity any form of investment offers them. You never know when you’ll need your money in a hurry. You can hold Bitcoin and sell it at the current market prices within a matter of seconds. Cryptocurrencies have one of the highest liquidity rates, and buying and selling them online does not pose any issues or problems.

The risks in buying and selling Bitcoin are also well-covered, thanks to the several tools and tactics you can use while trading in Bitcoin. You can opt for algorithm-based trading and set limits for your purchase or sale price.

Simple Procedures that Don’t take much Time

While investing in any stocks or securities or a bank involves several cumbersome procedures, investing in Cryptocurrencies is relatively easy. Today, you can even invest in fractions of a Bitcoin, as you have the freedom to invest small sums in Bitcoin.

Taking part in a Bitcoin transaction online is not very complicated, and even a layperson can easily understand the intricacies of investing in Cryptocurrencies. It is easy to create an online account, and all you need to do is get a wallet that helps you keep track of your investments.

Summing it Up

Investing in Cryptocurrencies is a smart move as your money is secure and keeps appreciating in value. Although there are only a few exchanges and trading platforms for Bitcoin, there are many eager investors.