The final goal of any investor is to make gigantic profits without any major or no losses. Platforms like www.bitql.app offers a massive range of trading forms in cryptocurrencies; you can correspondingly get help in trading commodities. To achieve this goal, an investor should always look to diversify their investment into different profitable aspects. Investors prefer nothing but cryptocurrencies in their portfolio, as people are getting a return on investment in just a few days to months.
People don’t consider these virtual coins with cryptographic technologies as an investment asset; it seems to be a transformative technology in the future. So let’s check out some reasons to add cryptocurrencies to your portfolio.
A Stable, Censorship-Resistant Store of Value
Cryptocurrencies, like Bitcoin and other altcoins, store value because they are censorship-resistant. Being censorship-resistant means that you can accumulate wealth in an asset that might lose weight if certain aspects of the economy go down. In addition, it will be safe from inflation by having such an anonymous tech-based asset.
A Tax Haven for Foreign Investors
It is a common misconception that the government has cracked down on cryptocurrency investors. However, the government does not restrict bitcoin miners or those who invest in them. The government doesn’t want foreign investors to use it as a loophole to avoid tax payments.
One of the best benefits of cryptos over regular currencies is that they are compatible with global regulations. Unfortunately, since this technology is global, very few countries have strict crypto use or investor protection rules.
Direct Control over the Money Supply
Many people believe that cryptocurrencies cannot be manipulated via monetary policy as it does not involve printing money but rather computer coding and cryptography. However, this means that cryptocurrencies, like bitcoin, are directly under central control, which is not ideal for governments or central banks to control.
Cryptocurrencies as an asset are also unregulated, so people can trade them without fearing fraud and abuse. However, the critical thing to remember about cryptocurrencies is that their supply is programmed and not printed by a central bank. Therefore, if you want your cryptocurrency to be more liquid and contribute to the global economy, you will have to buy or generate more over time.
A Store of Digital Value
People generally assume cryptocurrencies as digital assets. However, the need for a digital equivalent is growing since money has been centralized in government-issued fiat currencies for a long time. Therefore, people are buying cryptocurrencies as a store of value, which is viewed as gold 2.0 in the future because it has its inherent value even if its money supply has not faced any increment.
A Form of Payment and Personal Security
Another big reason people buy cryptocurrency is that it can have a use case as a currency in many online marketplaces. It has a wide use case on peer-to-peer exchanges, and even businesses accept it as a form of payment. Moreover, some countries have issued cryptocurrencies within their country instead of fiat currency.
Thefts, Scams, and Other Losses
Crypto is only new technology, so the general risk of loss due to investing in it is shallow. However, there are still risks associated with investing in virtual currencies. For example, in the case of ethereum, it is possible to lose your investment through faulty intelligent contracts and one’s private keys. Therefore, if you want to secure your investment and keep custody of your coins until the user transfers them to a wallet or exchange account, you must take extra measures.
What should you do?
If you are willing to commit more time to analyse the market, buying coins, selling them, and so on, then it will not be wise to invest like this. Instead, cryptocurrency experts strongly recommend starting with a small quantity of $50-$150 worth of coins. This way, you can keep track of your returns, even the minimum required for cash out. Then, invest only for the amount you are comfortable with losing without affecting your day-to-day expenses.
Suppose you are looking for secure investments to help you build wealth over time and reduce your portfolio’s potential losses. In that case, bitcoin and other cryptocurrencies should be in your portfolio.