6 Reasons Why You Should Start Trading Crypto In The Following Year
New York, NY - ( NewMediaWire ) - December 12, 2020 - If you haven’t heard of Bitcoin or any of the other major cryptocurrencies, you’ve probably lived under a rock for the past decade or so. This virtual currency has made some ordinary people really rich, and we are talking about serious wealth here.
Erik Fineman probably has a shrine someplace dedicated to his grandma (if not, he really should), since this lady lent him $1000 back in 2011 so that he could buy Bitcoin.
When the value of this cryptocurrency skyrocketed a few years later, he made a fortune. Charlie Shrem, a co-owner of a gastropub in Manhattan bought some Bitcoins when they were only a few bucks, and bought a few thousand more when their value reached $20. Talking about a wise investment!
Nowadays, Bitcoin is more popular than ever, since its price has hit an all-time-high of almost $20,000. Market experts and major crypto news publishers like Finixio predict bullish growth for the first and most well-known coin of them all. But what makes this time different to the last time we saw major growth?
More than a bubble
In December 2017 the Bitcoin crashed so spectacularly, that its value fell below the $4,000 mark. However, according to specialists, this time we shouldn’t expect the same scenario.
“The growth of bitcoin can no longer be seen as a bubble,” suggests Adam Grunwerg of crypto media publishers, Finixio. “There will inevitably be more market corrections at some point, but the overall trend is going to be upwards, so long term, patient investors stand to benefit the most.”
So it seems that Bitcoin isn’t a bubble that could burst anytime, and it is in fact here to stay.
One of the reasons why cryptocurrencies shouldn’t be compared to tulip bulbs anymore is the maturing of technology. The transactions have never been more secure and new layers are being developed that will allow blockchain technologies to be used in financial markets.
Also, institutions are starting to recognize its value and major players are now embracing cryptocurrency. There has even been a change in stance in the largest bank in the US JPMorgan Chase.
Although its CEO Jamie Dimon called it a fraud back in 2017, a team of its analysts is now predicting that the value of Bitcoin could double or even triple in the future.
With that said, it sounds like investing in cryptocurrencies might be a really wise move. However, if you are still not sure whether you should start trading crypto, here are several reasons that should tip the scales and help you make a decision.
The rise of demand
When Bitcoin was created more than a decade ago, not many people were able to predict that it would inspire an ever-growing legion of followers and the birth of so many other cryptocurrencies.
Bitcoin has definitely changed the traditional financial system since it was designed to be free from government manipulation and control. The field of cryptocurrencies is always expanding, and nowadays there are more than 2,000 digital tokens out there.
One of the reasons why so many people are interested in investing in cryptocurrencies is the fact that buying and selling Bitcoin and its virtual siblings is so easy. You do not need to be an expert to dip your toe into the world of cryptocurrency trading.
In fact, this type of trading is highly accessible these days and it is not reserved just for business investors and other sharks. Thanks to trading platforms with incredible technological organization, trading is quick and easy, so even newbies in this field can do it. These platforms offer various tools that make the whole process as simple as possible.
Turning a profit
Why would someone spend their money and time on crypto trading? Because of the possibility of making a huge profit, of course. Maybe you do not believe that money makes the world go round, but we can all agree that it can make your life much easier.
While investing in stocks is complicated and the potential returns are really low, with cryptocurrencies trading can really pay off, and you don’t even have to wait for a long time to turn a profit. Of course, the crypto market is highly volatile and you should never invest money you can’t afford to spend, but it is good to know that achieving high returns from a single trade is more than possible.
This year has been challenging for everyone and everything, even the global economy, and the traditional financial system. Of course, the main reason for this is pandemic and lockdowns. Due to fear of a recession, a huge number of investors turned to cryptocurrencies as a possible alternative to traditional financial assets.
It has been predicted that next year will only continue the process of cryptocurrency adoption.
As Adam Grunwerg of Finixio has observed, “We have already seen several major players in the world of financial services embrace crypto, including PayPal, JP Morgan, Visa and Mastercard. We predict that in 2021, this progress will only continue. That’s why it’s well worth investing in crypto, perhaps now more than ever.”
Investing in something like this might seem daunting since it is assumed that a lot of work is involved. For example, if you want to invest in real estate, first you need to possess a large sum. Then, there is a matter of visiting a number of banks, spending time in lines, signing a ton of papers, and dealing with all kinds of institutions.
However, by investing in cryptocurrencies, you can skip all of these steps and take a piece of the Bitcoin cake without wasting your precious time. Taking part in investment is so easy, you just need to make an account, make a small deposit and you are good to go. Since all of these platforms are compatible with smartphones, you can manage your investments from every corner of the world.
Lack of mediators
When you have a lot of money, what do you do with it? You put it in a bank, of course. However, not only will the bank take a piece of your profits, but you will be at its mercy, whether you like it or not. For example, if the bank is closed, you would have limited access to your money, not to mention that you could take a serious financial hit if the bank filed for bankruptcy. Though this may seem unlikely, remember that there were real issues and worries around this exact situation during the crash of 2008, so this is a very real possibility.
With Bitcoin and other cryptocurrencies, you do not rely on any institution for holding and transfers. This means you can forget about wasting money on bank fees. Cryptocurrencies offer a level of independence a bank could never provide.
Bitcoin in 2021
It seems that cryptocurrency is not going anywhere and 2021 is going to be big for this form of money. Adam Grunwerg of crypto news publishers Finixio believes that we will see big changes in the sector.
“We are going to see record levels of interest in bitcoin this year, and the emergence of central bank digital currencies is only going to see that accelerate” he says.
“The effect of coronavirus on consumer habits has accelerated ecommerce, and as part of that, online finance is only going to move further and faster towards crypto”.