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Cryptocurrency is one for the future and the present.
And right here, I will show you why it’s to your advantage to keep a fraction of your wealth as cryptocurrency.
Also;
You will discover answers to the most asked questions about crypto right on this page.
Ready?
Let’s get started.
PS: [ You should open “try these out””” for a meticulous understanding of the comparison between the largest crypto exchange in the world]
Top Benefits Of Holding Money As Crypto
Reliable store of value
Crypto is unlike money backed by the central bank of nations where the Government can increase/decrease the amount of money in circulation to suit its purpose. The amount of crypto that can be in circulation is limited to a certain amount and is backed by mathematical algorithms.
What this means is, your money is safe from the claws of inflationary tendencies.
24/7 access
The crypto market is unlike other markets that have closing hours, the market remains functional 24/7 a day. So you can easily cash out of your crypto holding or add more crypto to your portfolio at any hour of the day.
Potential for capital appreciation
Currently, the crypto market is largely based on speculative conditions. So, it offers massive upside for those who can trade in a speculative market. By going long or short on different coins at different times, you will earn a whole lot.
Also, merely keeping your coins for a period before selling for flipping for profit at a later time is also a reliable means to multiply your money.
Liquidity
Crypto is one of the most liquid asset classes, you can easily trade your holdings for cash at any time whatsoever, there are ready buyers for whatever crypto asset you have!
Answers to frequently asked questions on cryptocurrency
What are the liabilities of holding crypto?
Theft and threats from hackers are of significant threats in the crypto field. Incorrect wallet address means your crypto is gone with no means of recovering since there are no regulatory authorities.
What affects the crypto market?
The crypto market is very volatile and it is responsive to a variety of externalities that include press, number of active users, the supply, market capitalization, among many others.
How risky is cryptocurrency trading?
Due to its high level of volatility, the crypto market can be considered a risky venture. But once you know how to navigate this market and can contain your greed, you will be fine.
Can I invest in companies utilizing blockchain technology?
Yes, you can but you must know that the risk is high, and ditto for the reward! Before going ahead with such investments, make sure you do your due diligence on the business, its model, the team, and its method of execution.
Wrapping Thoughts
So far, we have established salient points on why it is smart for anyone across the globe to save some of their money in the form of crypto. It offers potential for capital appreciation in a magnitude that merely keeping paper money in the bank does not.
Of course, the risk of losing money is also high in this market. Nonetheless, if you do things right keeping money as crypto would end up being one of the best decisions of your life.
Image Credits: Quantum AI