Cryptocurrency is rapidly gaining popularity. Bitcoin is in the lead, reaching a record $7,300 in digital transactions in October 2017.
This provides a tip for those who want to know which cryptocurrency to invest in and is one of the reasons why professionals recommend investing in this particular financial instrument. Consider others.
Why You Should Invest in Cryptocurrencies
1. Innovative technological solutions and safety
Bitcoin is the first decentralized cryptocurrency. It is considered completely anonymous, safe and available to every consumer. The digital currency is based on blockchain technology that cannot be hacked because each transaction is established based on the previous transaction and entered into the register. This means that you need to modify the entire chain in order to make changes in one block.
The cost of the one-time control system computing power required to penetrate the chain and forge property rights greatly exceeds the possible income of hackers. Therefore, Bitcoin can be reliably protected from fraud and financial fraud, thereby increasing the trust of the holder of the encrypted wallet and confirming the security of the digital currency. Although this does not protect the holder from hackers.
2. Prevalence and availability
In addition to supporting Bitcoin’s technological innovation, a large-scale “living environment” also needs to be considered. The number of new users of Bitcoin wallets has increased by 6 million over the previous year, and this number continues to grow. This means that the demand for cryptocurrency will also grow, which is the guarantor of its stability.
Financial institutions have also found Bitcoin to be attractive. He works in asset management companies, venture capital funds and large banks, and is ready to conduct asset exchange operations (transactions are conducted 24/7). More and more transactions (deposits, withdrawals, transactions) are served by brokers, exchanges, e-wallets and exchanges, and they get their “piece of cake” in the form of commissions.
Because of the high demand, they can speculate, which stimulates a greater increase in the value of Bitcoin.
3. Versatility and legalization
Major market participants are paying more and more attention to cryptocurrencies. Bitcoin is considered to be the fastest, largest and most stable digital asset that can provide global payments. Bitcoin assets can even be used as collateral.
Private lenders claim that they are ready to accept cryptocurrencies at the same level as classic assets (gold and real estate). They believe that this is the ideal form of loan collateral-Bitcoin has high liquidity and does not require additional storage costs.
In Europe and Asia (Germany, Austria, South Korea, etc.), Bitcoin is equivalent to legal tender and is considered a convenient choice for payment of various goods or services. Alza, the largest retailer, accepts Bitcoin as a legal option for ongoing payments. Bitcoin ATMs are installed in Prague, Bratislava, the United States and other countries.
4. High return on investment
In the past year, investors have achieved amazing returns from Bitcoin investments of over 700%. So far, no other currency has shown this profitability. The extremely high volatility and huge potential not only attract long-term investors but also traders who trade in the short term.
At the same time, professional market participants try to balance their investment portfolios to avoid losses during periods of severe adjustment jumps. During the crisis, cryptocurrency became their most reliable tool. For investment open an account and enter your login details and trade immediately
5. “Gold Investors” Switch to Cryptocurrencies
The famous broker Mike Maloney (Mike Maloney) is the founder of the precious metals investment fund GoldSilver. He urges investors to use Bitcoin as an essential investment in their portfolio during the turbulent financial market and unexpected economic downturn.
He stated that: Investors around the world have begun to transfer some of their “gold reserves” to cryptocurrencies. Indeed, due to decentralization, the Bitcoin exchange rate does not depend on external events-it is not affected by economic, political, and social “turbulence”. He has proven in practice that he is one of the safest assets and can even protect a reliable investment.
6. Trading volumes
Bitcoin is developing and growing at an alarming rate, and with it, the number of cryptocurrency exchanges is increasing. The daily transaction volume processed by the trading platform exceeds 200 million U.S. dollars, which exceeds the trading performance of some classic currencies. In terms of trading volume, Bitcoin surpassed the Japanese yen to become the largest participant and occupy the largest share of the global exchange market.
7. Value and stable growth of the exchange rate
The main value and reason for the high demand for Bitcoin are the limited emissions of 21 million units. Of these, about 16 million are in circulation, and the rest will be released in 2050.
In other words, demand exceeds supply by many times, causing a certain degree of deficit, making this cryptocurrency highly liquid, and making an investment in it profitable.
In the entire history of its existence, there are only a few cases that led to a sharp drop in the exchange rate of cryptocurrencies for no reason. However, the subsequent growth has greatly masked the decline.
The new Bitcoin Cash entered the market on August 1, 2017, showing better results than its parent company-its value tripled on the second day of the transaction. There is no doubt that Bitcoin will continue to grow in the future, which will become a guarantee of return on investment.
So which cryptocurrency to invest in 2021
The cryptocurrency market offers many opportunities to make money, so it should not be missed. For those who are inspired to invest in Cryptocurrency like Bitcoin, you need to read Bitcoin Revolution Review. Currently, there are at least 1,000 cryptocurrencies. Will one of them be as popular as Bitcoin? It’s hard to say clearly-many factors must be considered.
In connection with the initial stage of market formation, the situation is changing rapidly: today’s coin is worth 50 dollars, tomorrow’s coin price is only 0.50 cents, and it can’t even survive. The cost directly depends on the demand, the transaction volume and the availability (versatility) of the selected token.
Based on the above reasons, it is clear that Bitcoin has the greatest potential and can provide considerable income in the long term. It was the first company and now maintains its position with a market value of more than $75 billion. In the total amount of cryptocurrency, its share is about 70%.
By the end of 2020, Bitcoin may appreciate more. It is this token that is considered the most promising cryptocurrency in 2021 and opens up opportunities for profitable investment. Therefore, observe, draw conclusions, and make your own decisions. Remember, Never invest more than you can afford, then you will have all the chances of success. Good luck!