Are you looking for a great investment asset to add to your portfolio?
If so, you’ve likely wondered if you should add crypto investments to your agenda.
While you should weigh your own risk-reward ratio you’ll find that investing in crypto might be one of your best investment options.
This quick guide will show you the benefits of investing in cryptocurrency so you can decide if it works for you.
Here’s what you need to know if you’ve wondered should you invest in crypto:
While many first-time investors look at crypto as an asset to sell for fiat, you’ll find that it works as a method for preserving wealth.
For example, one of the biggest issues with fiat currencies is that they’re issued by central banks. These central banks have the power to print as much of a particular currency as they choose.
As such, the more USD gets printed the more it loses its purchasing power. The same goes for all fiat currencies.
Many cryptocurrencies, such as Bitcoin, hedge against inflation. There is a set amount of 21 million Bitcoins.
As a result, Bitcoin preserves its purchasing power even with market fluctuations. You can use bytefederal.com to buy Bitcoins.
You can also sell your cryptocurrency for fiat which also helps you preserve your wealth. You can “earn” money as the fiat value of your crypto grows. One of the benefits of cryptocurrencies is that you can also convert between them.
For example, if you have Bitcoin Cash you can convert it to Bitcoin and vice-versa. So if you receive a cryptocurrency that you don’t believe in, you can always convert it to a better coin!
Another advantage of cryptocurrencies is that they serve as an alternate form of currency.
What happens if your fiat currency completely loses its value? You can use cryptocurrency for your transactions.
This is also a crucial protection if you live in a country that’s cracking down on financial freedoms.
There have been cases where citizens have had their bank accounts frozen. There have also been cases where citizens have had the government steal money from their bank accounts to pay off debt!
Cryptocurrency is a great solution to this problem. You have access to your own money and you serve as your own bank.
With the currency wars, cryptocurrencies are a neutral and non-political option. You might travel to a jurisdiction where your main fiat currency isn’t accepted. However, you can use a cryptocurrency to transact to skirt around these restrictions.
Should You Invest In Crypto?
If you’ve wondered should you invest in crypto, now you can determine if it works for you based on this guide.
The best advantage of cryptocurrency is that it helps you preserve wealth. Many cryptocurrencies can help you hedge against inflation. You can also use them as an asset to sell for fiat.
The other great advantage of cryptocurrency is that you can use it as an alternative form of currency. With the attack on financial freedom, cryptocurrencies can ensure you can still transact.
You can read more about investing in cryptocurrency on our blog!